The Central Bank of Sri Lanka (CBSL) yesterday shared new corporate governance regulations for licensed banks, aimed at reinforcing the accountability and resilience of the countryâs banking sector.Â
Issued as Banking Act Directions No. 05 of 2024, these measures will take effect on January 1, 2025, replacing the previous 2007 guidelines.
The updated framework is designed to enhance oversight at licensed commercial and specialised banks, promoting responsible banking practices that prioritise depositor protection and sector stability. The move comes as part of CBSLâs broader strategy to align with international banking standards and address the growing complexity and risks in the financial system.
âThe banking sector is dynamic, fast evolving and becoming increasingly complex, while being exposed to emerging risks, frauds and failures.Â
âAccordingly, a robust corporate governance framework that encompasses sound corporate culture and values, healthy composition of BOD, strengthened process of assessment of fitness and propriety and strong risk management and control functions is of paramount importance for the banking sector,â the CBSL said in a statement.
With deposits accounting for over 80 percent of the sectorâs funding by the end of 2023, CBSL stressed the critical role of Boards of Directors and senior management in safeguarding depositor interests. The new regulations aim to foster a corporate culture centered on accountability, risk management, and ethical governance practices.
The reforms build on the recent Banking (Amendment) Act No. 24 of 2024, which introduced legal changes to strengthen corporate governance across the sector. They also align with global best practices, including guidelines from the Basel Committee on Banking Supervision, to address emerging challenges and governance failures seen internationally.
A spokesman for former President Ranil Wickremesinghe today refuted claims made by Cabinet Spokesman Vijitha…
President Anura Kumara Dissanayake will likely undertake his first official overseas visit to New Delhi…
The International Cricket Council (ICC) has banned Sri Lankan player Praveen Jayawickrama from all cricket…
Oil prices climbed more than 2% on Wednesday on rising concerns that Middle East tensions…
All political parties that supported former President Ranil Wickremesinghe at the recent Presidential Election are…
Bus fares have been reduced by 4.24%, effective from midnight today (Oct. 01), according to…