Sri Lanka will enact a new Banking Act in 2021, which will contain provisions to extend regulations for banks, which are to be established in the Colombo International Financial Centre.In addition, key concepts of the proposed Act include provisions to introduce a single type of banking license for Licensed Commercial Banks (LCB) and Licensed Specialised Banks (LSB), adoption of proportionality in banking regulations commensurate with bank’s size, its nature of operations etc, subsidiarisation of banks incorporated outside Sri Lanka and allowing to ring-fence subsidiaries from adverse external shocks.
“Moreover, CBSL also intends to introduce many other provisions to the proposed act which include streamlining approval for establishment of branches and other banking outlets, strengthening consumer protection, deposit insurance, and governance, amalgamating both offshore banking unit (OBU) and domestic banking unit (DBU) operations into a single banking business, and improving resolution, enforcement and supervisory actions,” the Governor of the Central Bank Governor Prof. W.D Lakshman told the launching ceremony of CBSL’S road map for 2020 yesterday (06).