Implementation of Banking (Amendment) Act of 2024

The Central Bank of Sri Lanka (CBSL) announced the implementation of the Banking (Amendment) Act, No. 24 of 2024, effective from 15.06.2024.

These amendments were formulated to strengthen further the legal and regulatory framework applicable for licensed commercial banks and licensed specialized banks (licensed banks) to enhance the resilience of the banking sector of Sri Lanka.

The Banking Act, which provides for the introduction and operation of a procedure for licensing persons carrying on banking business and for regulating and controlling matters relating to banking business, was amended in 2006.

Therefore, the recent amendments were formulated considering the developments in the current regulatory framework, economic and market developments, the best practices, and international standards adopted on prudential requirements in the context of the local banking sector.

In addition, the observations and comments of the relevant stakeholders, viz., the banking sector, the Panel of Auditors conducting audits of banks, other regulators, and authorities, were also considered, as appropriate, when drafting the amendments to the Banking Act.