Regulatory Alerts2016-12-29 | Banking Act Directions No.1 of 2016Capital Requirements Under Basel III for Licensed Commercial and Specialised Banks
The Monetary Board of the Central Bank of Sri Lanka has issued Banking Act Directions No. 01 of 2016 to implement Basel III capital standards for all licensed commercial and specialised banks. The directive mandates that these institutions maintain minimum capital ratios and buffers against risk-weighted assets, with phased compliance requirements beginning in July 2017 and full implementation by January 2019. Banks must establish robust Internal Capital Adequacy Assessment Processes, disclose key regulatory data alongside financial statements, and face dividend restrictions if they fail to meet the prescribed capital thresholds.
Share