Sri Lanka banks given three years to boost capital
ECONOMYNEXT – Sri Lanka’s central bank has given three years for licensed bank to increase their capital to reach Basel III standards.
"A time period of over 03 years has been granted for existing banks to enhance capital and to meet the minimum capital requirement," the central bank said in a statement.
"During this period, banks are expected to formulate and implement new capital infusion plans and to take necessary measures to re-structure or consolidate if necessary."
Domestic licensed commercial banks need a capital of 20 billion rupees and domestic licensed specialized banks 7.5 billion rupees.
Foreign banks with with assets below 100 billion rupees should have a capital of 05 billion rupees nd those over 100 billion need 10 billion rupees of capital.
Foreign banks in Sri Lanka are branches of a main bank.
According to industry analysts most of Sri Lanka’s bigger domestic banks are already compliant and most others are on track. (Colombo/Oct26/2017)