Regulatory Alerts2026-08-03 | Finance Business Act Directions No.04 of 2026Added
Finance Business Act Directions No.04 of 2026 on Structural Changes
The Central Bank of Sri Lanka requires Finance Companies to obtain prior approval for structural changes, including forming subsidiaries, changing share capital, or merging. Investments in ordinary shares are capped at 5% of core capital individually and 25% in aggregate, with non-financial subsidiaries restricted to supporting core business activities. Asset transfers must be for monetary consideration, and existing non-compliant investments must be divested within five years, while excess share investments must be reduced within one year.