Saturday, July 27

Tag: Central Bank

Licensed Banks to come under requirements to implement Recovery plans
4Jan By AuthorNo Comments
Banking and Insurance, Business, Finance and Leasing

Licensed Banks to come under requirements to implement Recovery plans

Sri Lanka's Licensed Banks come under requirements to implement Recovery plans in order to strengthen crisis preparedness and to enhance their ability to respond effectively to adverse scenarios with the expected rise in sour loans when COVID-19 related moratoriums are expired, the Central Bank (CB) announced today. "Directions will be issued in due course, providing necessary guidelines. The Central Bank will continue to adapt its supervisory approaches to suit the new normal," Central Bank (CB), Governor, Professor W D Lakshman said. He revealed this while presenting "the Road Map: Monetary and Financial Sector Policies for 2021 and Beyond." Further, he also revealed that the CB would introduce a regulatory framework for technology risk management and resilience of license...
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Central Bank Promotes Yvette Fernando, Dhammika Nanayakkara as Deputy Governors
18Dec By AuthorNo Comments
Banking and Insurance, Finance and Leasing

Central Bank Promotes Yvette Fernando, Dhammika Nanayakkara as Deputy Governors

The Central Bank (CB) announced that Yvette Fernando, Dhammika Nanayakkara promoted as Deputy Governors to fill the positions vacated by Deputy Governors Dr. Nandalal Weerasinghe and H.A. Karunaratne upon their retirements in September. "The Monetary Board, with the concurrence of the Minister of Finance, has promoted Assistant Governors, Mrs. T M J Y P Fernando and Mr. N W G R D Nanayakkara to the post of Deputy Governor of the Central Bank of Sri Lanka (CBSL) with effect from 14th December 2020," the CB said. The most senior CB officials, Dr. Weerasinghe and Karunaratne left the CB in September this year, taking three-month prior to their retirements. Fernando has over 30 years of service in the CB in the areas of supervision and regulation of banks, foreign exchange managemen...
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Financial Regulators to face dilemma once the withdrawal from Covid-19 measures begins
14Dec By AuthorNo Comments
Banking and Insurance, Economy, International Business, Opinion

Financial Regulators to face dilemma once the withdrawal from Covid-19 measures begins

The Financial Regulators across the World will face a dilemma once the withdrawal from Covid-19 measures begins as to how and when to exit from regulatory relief measures in balancing the benefits of economic relief with financial stability considerations. "The challenge will be how and when to exit from regulatory relief measures. In terms of timing, authorities need to steer a course between Scylla and Charybdis. Acting too early may remove much needed credit to support economic growth. Waiting too long may delay necessary resource reallocation and put additional long-run pressure on the financial sector as the solvency phase of the crisis could expose any depletion of loss-absorbing resources, potentially undermining confidence in the post-crisis regulatory regime and its abilit...
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First Capital Research predicts a 50% chance for a policy rate cut
23Nov By AuthorNo Comments
Banking and Insurance, Business, Economy, Finance and Leasing

First Capital Research predicts a 50% chance for a policy rate cut

First Capital Research predicted a 50% chance for a policy rate cut by the Central Bank (CB) at its upcoming Monetary Policy Review Meeting this month. "We believe that CB will maintain same policy stance in this monetary policy review, but given the concerns around economic growth, CBSL is likely to retain the monetary policy stance at “accommodative”, Colombo-based leading Research House, First Capital stated in its Pre-Policy Analysis Report. Arguments against further relaxation in monetary policy Improvement in high-frequency indicators with surplus liquidity in the system As a response to the measures taken by the Govt, private sector credit has improved to LKR 87.4Bn in Sep while the market liquidity has reached LKR 140.0Bn by 13th Nov indicating that there is surplus l...
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Central Bank defers repayment plans submitted by two illegal Finance Companies to depositors’ liabilities
23Nov By AuthorNo Comments
Business, Economy, Finance and Leasing

Central Bank defers repayment plans submitted by two illegal Finance Companies to depositors’ liabilities

The Monetary Board of the Central Bank (CB) has thrown out the time-bound repayment plans submitted by two illegal Finance Companies to settle the depositor liabilities in full. "The Monetary Board of the Central Bank of Sri Lanka at its meeting held on 21.10.2020 decided that the submitted repayment plan was not acceptable. Further, a report was sent to the Attorney General’s Department on 02.11.2020 by the Central Bank of Sri Lanka requesting to institute criminal proceedings in this regard under the provisions of the said Act on the advice of the Monetary Board," the CB said in a notice to the public. The CB in September determined that Atapattu Mudiyanselage Dammika Kumara Atapattu and Eyon Lanka Investment and Film Production International Company (Pvt) Limited both at ‘Saman ...
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