magerata

Monetary Board of the Central Bank of Sri Lanka Sets Minimum Capital Requirement Of Licensed Banks

In Colombo Stock Exchange, magerata, Monetary Board of the Central Bank of Sri Lanka on September 14, 2010 at 4:53 am

With a view to promoting the existence of strong banks that are resilient to internal and external shocks, the Monetary Board of the Central Bank of Sri Lanka has decided to increase the minimum capital requirement of licensed banks, as follows.

New Banks

Year

Licensed Commercial Banks

(Rs. Bn.)

Licensed Specialised Banks

(Rs. Bn.)

2010

3.0

2.0

2012

4.0

2.5

2014

5.0

3.0

Existing Banks

Effective Date

Licensed Commercial Banks

(Rs. Bn.)

Licensed Specialised Banks

(Rs. Bn.)

31.12.2011

3.0

2.0

31.12.2013

4.0

2.5

31.12.2015

5.0

3.0

Increased capital will further provide a cushion for banks to enhance their contribution to the new growth sectors of the economy and to absorb any unexpected losses.

In keeping abreast with this requirement and having considered the need for enhancing the ability of banks to raise additional capital in a more transparent manner and further improving governance through market discipline, the Monetary Board has also decided to require unlisted locally incorporated private banks to list them in the Colombo Stock Exchange by 31.12.2011.

The official news release could be found at CBSL and Since they are still dealing with Microsoft Docs, here is the PDF version of the press release, Minimum capital requirement for Sri Lankan Banks

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