The Central Bank of Sri Lanka (CBSL) regulates and supervises licensed banks and financial institutions under statutory law.

Banking is governed by the Monetary Law Act and the Banking Act, as amended by recent legislation including the Banking (Amendment) Act No. 24 of 2024.

The CBSL maintains financial system stability, regulates banks and financial institutions, manages monetary policy, and provides payment and settlement oversight.

Licensed entities include commercial banks, specialized banks, and licensed finance companies authorized by the CBSL.

Yes. Operating a finance business and accepting deposits without a CBSL license is an offense under the Finance Business Act No. 42 of 2011.

Yes, non-residents may open certain accounts subject to compliance with foreign exchange and banking regulations.

Sri Lanka has a Deposit Insurance and Liquidity Support Scheme to protect depositors under specified conditions.

Banks may impose account operation conditions for non-resident customers under CBSL and internal rules.

Banks must comply with regulatory and contractual requirements; blocked accounts without cause may require legal recourse.

Typically, valid identification, proof of address, tax identification, and in case of non-residents, additional documentation under the Foreign Exchange Act.

Yes, subject to foreign exchange regulations and current CBSL directives.

Loans are governed by contract law, the Banking Act, and prudential standards set by the CBSL.

Yes, banks can enforce security interests against default in accordance with law and security agreements.

Parate execution allows banks to sell mortgaged property without court intervention under statutory provisions, subject to legal safeguards.

Interest rates are market-determined, though the CBSL may issue guidelines impacting rate frameworks.

The Securities & Exchange Commission of Sri Lanka (SEC) is the apex regulator for capital markets under the SEC Act No. 19 of 2021.

The SEC ensures capital markets are fair, efficient, transparent, and protects investors by licensing and supervising market participants.

The SEC oversees equity markets, debt markets, listed companies, stock brokers, credit rating agencies, and other intermediaries.

Capital markets are governed by the Securities & Exchange Commission Act No. 19 of 2021 and related rules and regulations.

The CSE is Sri Lanka’s primary securities exchange where equities and listed instruments are traded under SEC supervision.

Both local and foreign investors can participate, subject to regulatory requirements and foreign exchange laws.

Investors generally trade through licensed brokers registered with the SEC.

Equities (shares), corporate and government bonds, and in future regulated derivatives may be traded.

Yes. Companies may issue corporate bonds subject to SEC and CSE listing requirements.

An RIA is a licensed professional who provides investment advice, requiring a recognized qualification under SEC guidelines.

Yes. The Certificate in Capital Markets (CCM) is required to become a Registered Investment Advisor in Sri Lanka.

The CCM covers securities markets, equity, debt, unit trusts, financial instruments, and regulatory ethics.

RIAs primarily serve the domestic market but may advise on products consistent with Sri Lankan law.

Yes, RIAs need CPD credits annually as per SEC directives.

The SEC issues directives, circulars, and rules which market participants must follow.

Yes. The SEC regulates market conduct, and insider trading is prohibited under capital markets law.

Yes. The SEC can investigate, enforce actions, and issue penalties for regulatory violations.

Yes. Listed entities must disclose financial information to ensure transparency and protect investors.

The SEC enforces governance standards for listed companies to ensure ethical business conduct.

Foreign companies may list subject to SEC and CSE requirements, including disclosure and regulatory compliance.

The money market deals with short-term financial instruments (under 1 year) such as treasury bills and call money.

The capital market deals with long-term financial instruments like bonds and equities to facilitate capital raising.

Regulators are working on instruments like regulated short selling and modern settlement mechanisms.

Digital transformation efforts aim to enable end-to-end digital trading and settlement.

Plans are underway to expand government securities trading on the exchange with Central Bank support.

Yes, subject to exchange control approvals and market regulations.

Regulatory groundwork exists for multi-currency boards, enhancing foreign investor participation.

Frameworks are being prepared to facilitate foreign currency securities issuance.

Yes, tax applies on dividends and interest, subject to tax treaties.

Yes, with registration and compliance with SEC and foreign exchange rules.

Yes, through deposit insurance schemes for banks.

Yes, financial institutions must comply with AML and FATF-aligned regulations.

The SEC monitors and enforces against abuse and manipulation.

Regulation emphasizes transparency and protection of minority shareholder rights.

Yes, financial disputes may be resolved through courts and arbitration subject to legal frameworks.

Present documentation under CBSL and banking regulations; tax and identity verification is required.

Yes. Banks provide LC (letters of credit), guarantees, and trade finance solutions.

Yes, syndicated lending is a common financing structure for large projects.

Yes, Islamic finance products are offered by some institutions.

Yes, banks provide treasury and asset management services to clients.

Yes. Capital market certifications like CCM pave the way for careers as investment advisors.

Yes; licensed advisors must meet annual CPD requirements.

Future derivatives regulation is being considered under the SEC framework.

Yes, including bond issuances and structured finance offerings in the market.