SEC | SECURITIES AND EXCHANGE
COMMISSION OF SRI LANKA
ශ්‍රී ලංකා වටිනාපත්‍ර කොමිෂන් සභාව
இலங்கை பங்குச் சந்தை ஆணைக்குழு

09TH NOVEMBER 2026
Ref: SEC/ADG/2026/11/326

TO: ALL CUSTODIANS

DIRECTIVE ISSUED IN TERMS OF SECTION 16(d) OF THE SECURITIES AND EXCHANGE COMMISSION OF SRI LANKA ACT NO. 19 OF 2021

The Securities and Exchange Commission of Sri Lanka (SEC), at its 537th and 538th Commission Meetings approved the implementation of a decentralized onboarding framework for the onboarding of Country Funds, Regional Funds and Global Funds (“Foreign Portfolio Investment Funds” or “FPI funds”).

Pursuant to the said approval,

I. the existing process for the onboarding of FPI Funds, is hereby decentralized and accordingly Custodians are authorized to carry out, and shall be responsible for, the operational onboarding and account opening functions in respect of FPI Funds;

II. custodians, being Supplementary Service Providers in terms of the Securities and Exchange Commission of Sri Lanka Act, No. 19 of 2021 (the “SEC Act”), shall perform such functions, while ensuring that appropriate arrangements are maintained for governance, compliance, investor due diligence, record keeping, reporting and regulatory oversight. The performance of such functions by Custodians shall be subject to documented and risk-based post onboarding review by the Central Depository Systems (Private) Limited (the “CDS”);

III. with effect from 01st December 2026, every Custodian onboarding an FPI Fund shall comply with the requirements set out in the Guidelines Applicable for Custodians for when Onboarding Foreign Portfolio Investment Funds under the Securities and Exchange Commission of Sri Lanka Act No.19 of 2021 (the “Guidelines”) issued to Custodians herewith and annexed to this Directive. The said Guidelines form an integral part of this Directive;

28 සහ 29 මහල, නැගෙනහිර කුළුණ
ලෝක වෙළඳ මධ්‍යස්ථානය
එක්සත් ජාතීන් විදිය, කොළඹ 01.
28 மற்றும் 29 ஆம் மாடி, கிழக்கு கோபுரம்
உலக வர்த்தக மையம்
ஐக்கிய நாடுகள் சாலை, கொழும்பு 01.
Level 28 & 29, East Tower
World Trade Centre
Echelon Square, Colombo 01, Sri Lanka.

දුරකථන
தொலைபேசி
Telephone
} +94 11 2143843
ෆැක්ස්
தொலைநகல்
Fax
} +94 11 2439149
වෙබ් අඩවිය
இணையம்
Website
} www.sec.gov.lk www.cmet.sec.gov.lk www.cmic.sec.gov.lk

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IOSCO
International Organization of Securities Commissions

IV. The aforesaid Guidelines shall be supplementary to, and shall be read together with, the existing Guidelines applicable for Custodians who provide services to a Market Institution, Market Intermediary, Listed Public Company or a Collective Investment Scheme issued by the SEC (the “Existing Guidelines”);

V. With effect from 01st December 2026, the Existing Guidelines are amended as follows:

(a) Clauses 9, 10 and 11, appearing under the heading “Duties of a Custodian of a Country/Regional/Global Fund”, together with the said relevant side note, are rescinded; and the words ‘approval from the Commission shall be removed from the definition of the Fund; and

(b) the definition of “Fund” in Clause 1 is deleted and substituted with the following: “Fund” means a Country, Regional and Global fund that invest, in listed securities in Sri Lanka.

Custodians shall ensure that the onboarding of FPI Funds is undertaken strictly in accordance with this Directive, the aforesaid Guidelines, the SEC Act, rules, regulations, directives and requirements issued by the SEC and all other applicable written laws.

This Directive shall be effective from 01st December 2026, and all Custodians shall ensure full compliance with it’s provisions with effect from that date. Any non-compliances hereof shall be dealt with in terms of the SEC Act.

Tushara Jayaratne
ACTING DIRECTOR GENERAL

Encl:

Annexure - Guidelines Applicable for Custodians for Onboarding Foreign Portfolio Investment Funds under the Securities and Exchange Commission of Sri Lanka Act. No. 19 of 2021.