Regulatory Alerts2018-11-30 | Banking Act Directions No. 11 of 2018Added · Updated
Foreign Currency Borrowings by Licensed Banks
The Monetary Board of the Central Bank of Sri Lanka issued Banking Act Directions No. 11 of 2018 to establish a structured policy framework governing foreign currency borrowings by licensed commercial and specialised banks. The directive caps outstanding foreign currency debt as a percentage of total assets based on a credit rating and capital adequacy scoring system, distinguishing between short-term and long-term maturities. It mandates prior Monetary Board approval for limit exceedances, requires robust hedging and risk management practices, and restricts long-term borrowing utilization to strategic domestic investments and government debt.
More like this from CBSL
CBSL published 1 document in the last 30 days. We email you each new one the day it's published.