New Banking Act to be drafted soon

The Central Bank has initiated drafting a new Banking Act and expects to complete its enactment in 2021. 

The proposed Act will provide provisions to introduce a single type of banking licence for licenced commercial banks and licenced specialised banks, Central Bank Governor W.D. Lakshman said at the release of the bank’s road map 2020 in Colombo on Monday.  

The new Banking Act will contain provisions to extend regulations for banks which are to be established in the Colombo International Financial centre, the Colombo Port City. 

Unveiling details in the road map, he said that measures will be taken to adopt banking regulations commensurate with the bank’s size and its nature of operations etc, he added.

Banking regulations will vary based on bank sizes and their nature of operations, Prof. Lakshman said.

Banks’ offshore and domestic banking units will be merged to a single business under the new law.

Looking forward to a strong and dynamic banking sector, capital ratios are expected to improve with the infusion of capital to meet the enhanced minimum capital requirement for banks by end 2030, he added. (BS)