Regulatory Alerts2019-12-19 | Banking Act Directions No. 9 of 2019Amendment to Banking Act Directions Nos. 11 and 12 of 2007 on Corporate Governance for Licensed Banks in Sri Lanka
The Central Bank of Sri Lanka issued Banking Act Direction No. 09 of 2019 to amend its 2007 corporate governance framework for licensed commercial and specialised banks. The amendment establishes a mandatory six-month cooling-off period that prohibits directors and chief executive officers from immediately taking positions at another licensed bank, allowing exceptions for restructuring expertise upon prior Monetary Board approval. Licensed banks must enforce this cooling-off requirement and restrict the powers, privileges, and benefits of any director appointed in violation of these rules.
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