Sri Lanka mulls new policy on expatriate staff in banks
View(s):The Sri Lanka government will be introducing a broad- based policy on the employment of expatriate staff in local and foreign banks, considering the requirements for external expert contribution.
The Central Bank will devise a new regulatory framework, to ensure that treasury operations of licensed banks are carried out prudently and in line with international best practices.
It is also focusing attention on measures to impose and reinforce the regulatory and supervisory roles on corporate governance and ethics, customer care and fintech, block chain and cyber security.
Fit and proper assessment criteria, for the appointment of directors, CEOs, and key management personnel of banks will be further strengthened, a senior Central Bank official told the Business Times.
In the backdrop of growing interest from foreign banks to establish their branches in Sri Lanka, a set of guidelines for the employment of expatriate officers in licensed banks has been issued by the Central Bank recently.
Foreign banks should limit the employment of expatriate staff to a maximum number of 3 to 10 expatriate officers permitted in terms of the Guidelines on Employment of Expatriate Staff in Banks.
This number is based on the total local staff employed by the banks. Further, locally incorporated banks may be permitted (such recruitment) on a case-by-case basis taking into consideration the needs of the banks.
Special attention will be paid on employing foreign experts in the fields of risk management, International Accounting Standards, risk modelling and data warehouse, structuring of derivative products and corporate governance, the Central Bank official said.
According to the guidelines, licensed banks shall give priority to local officers and employment of expatriate officers shall be considered only after all reasonable means have been taken to attract and employ local officers.
Requirements for expatriate officers, who are appointed as Chief Executive Officers (CEOs) or such other officers performing executive functions in licensed banks, are subject to the fitness and propriety assessment in terms of the Banking Act, No. 30 of 1988, as amended, in addition to these guidelines.
These banks will have to establish succession planning to identify local staff and train such staff to take up the positions/responsibilities held by expatriate officers within a reasonable period.
Validity period of the employment contract approval will be on a case-by-case basis up to a maximum of four years for CEOs and three years for other expatriate officers.
There ar33 banks are operating in the country currently of which 26 are licensed commercial banks, including 13 foreign banks and seven licensed local commercial banks.