CBSL intends to cut ownership limits of LFCs to 25-pct; invites stakeholder inputs

May 22, 2019 (LBO) – Sri Lanka’s Central Bank invites stakeholders to submit observations on the drafted master plan that intends to introduce ownership limits to the Licensed Finance Companies (LFCs).

The Department of Supervision of Non-Bank Financial Institutions (DSNBFI) is in the process of introducing ownership limits for LFCs to strengthen the corporate governance practices, proper delegation of duties, collective decision making process and internal controls.

DSNFBI has already drafted the master plan on introducing ownership limits of the LFCs and the master plan is intended to bring down the ownership limits to 25 percent within a timeframe of 5 years.

A consultation paper on introducing ownership limits of the Licensed Finance Companies has also been drafted with a view to obtain stakeholder observations.