4

………………BANK
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED ……………..
Bank /Group
In Rupees Million  Stated capital/Assigned capital   Reserves  Total  Non-
controlling
interest  Total
equity  Ordinary
voting
shares  Ordinary
non-voting
shares  Assigned
capital  Statutory
Reserve
fund  OCI
Reserve  Revaluation
reserve  Retained
earnings  Other
reserves
Balance as at DD/MM/YY
(Opening balance)
Total comprehensive
income for the year
Profit/(loss) for the year (net
of tax)
Other comprehensive
income (net of tax)
Total comprehensive
income for the year

Transactions with equity
holders, recognised
directly in equity
Share issue/increase of
assigned capital
Share options exercised
Bonus issue
Rights issue
Transfers to reserves during
the period
Dividends to equity holders
Profit transferred to head
office
Gain/(loss) on revaluation of
Property, Plant and
Equipment (if cost method
is adopted)
Others (Please specify)
Total transactions with
equity holders

Balance as at DD/MM/YY
(Closing balance)

Note: First day impact due to adoption of ‘ SLFRS9: Financial Instruments ’ need s to be presented separately .


5
 ……………. BANK
STATEMENT  OF CASH FLOWS
FOR THE YEAR ENDED ………………
In Rupees Million  Note  Bank  Group
20XX  20XX  20XX  20XX
Cash flows from operating activities
     Interest receipts
     Interest payments
     Net commission receipts
     Trading income
     Payments to employees
     VAT & NBT on financial services
     Receipts from other operating activities
     Payments on  other operating activities
     Operating profit before change in operating assets & liabilities

(Increase) /  decrease in operating assets
Balances with Central Bank of Sri Lanka
Financial assets at amortised cost – loans & advances
Other assets (please specify)

Increase / (decrease) in operating liabilities
Financial liabilities at amortised cost – due to depos itors
Financial liabilities at amortised cost – due to debt securities holders
Financial liabilities at amortised cost – due to other borrowers
Other liabilities (please specify)
Net cash generated from operating activities before income tax

Income tax pa id
Net cash (used in) / from operating activities

Cash flows from investing activities
     Purchase of property, plant and equipment
     Proceeds from the sale of property, plant and equipment
     Purchase of financial investments
     Proceeds from the sale and maturity of financial investments
     Net purchase of intangible assets
     Net cash flow from acquisition of investment in subsidiaries,
associates  and joint ventures
     Net cash flow from disposal of subsidiaries , associates and joint
ventures
     Dividends received from investment in subsidiaries and associates
     Others (please specify)
     Net cash (used in)/from investing activities

Cash flows from financing activities
     Net proceeds from the issue of ordinary share capital
     Net proceeds from the issue of other equity instruments

data\CBSL\2019\Circular No. 2 of 2019 to be uploaded in CBSL WEB.pdf


Net proceeds from the issue of other equity instruments
     Net proceeds from the issue of subordinated debt
     Repayment of subordinated debt
     Interest paid on subordinated debt
     Dividend paid to non -controlling interest
     Dividend paid to shareholders  of the parent company
     Dividend paid to holders of other equity instruments
     Others (please specify)
     Net cash (used in) / from financing activities

Net increase/(decrease) in cash & cash equivalents
     Cash and cash equivalents at the beginning of the year                                  16
    Exchange difference in respect of cash & cash equivalent
     Cash and cash equivalents at the end of the year                                                                                16

Note: Banks have the option  to use one of the two methods specified  in LKAS 7 for the preparation of the statement of cash flow s.


6
 NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED DD MM YYYY

1 Corporate information

2 Accounting policies
2.1 Basis of preparation
2.1.1  Statement of compliance
2.1.2  Presentation of financial statements
2.2 Basis of consolidation
2.3 Significant accounting judgments and estimates
2.3.1 Fair value of financial instruments
2.3.2  Day 1 Impact  *
2.3.3 Impairment losses on financial assets at amortised cost – loans and advances
2.3.4 Impairment losses on other financial assets
2.3.5 Deferred tax assets
2.3.6 Pensions obligation
2.3.7 Other s
2.4 Changes in accounting policies  and disclosures
2.4.1  Reconciliation of statement of financial position balances from LKAS 39 to SLFRS 9  *
2.4.2  Reconciliation of impairment allowance balance from LKAS 39 to SLFRS 9  *
2.4.3  Reconciliation of reserves and retained earnings from LKAS 39 to SLFRS 9  *
2.5 Summary of significant accounting policies
2.5.1 Foreign currency translation
2.5.2 Financial instruments
2.5.2.1  The ‘Solely -Payment -of-Principal -and-Interest’ (SPPI) test
2.5.2.2  Business model assessment
5.2.2.3  Initial classification and measurement of financial instruments
2.5.2. 4 Subsequent measurement
2.5.2.5 Impairment of financial assets (policies applicable before 01.01.2018)  *
2.5.2. 6 Impairment of financial assets
2.5.3  Impairment of non -financial assets
2.5.4 Repurchase and reverse repurchase agreements
2.5.5 Securities lending and borrowing
2.5.7  Determination of fair value
2.5.8  Hedge accounting
2.5.9  Off-setting financial instruments
2.5.10  Leasing
2.5.11  Recognition of income and expenses
2.5.12  Cash and cash equivalents
2.5.13  Property, plant and equipment
2.5.14  Business combination and goodwill
2.5.15  Intangible asset s
2.5.16  Financial guarantees
2.5.17  Pension benefits
2.5.18  Provisions
2.5.19  Share based payment transactions
2.5.20 Taxes
2.5.21  Dividends
2.5.22 Reserves


2.5.19  Share based payment transactions
2.5.20 Taxes
2.5.21  Dividends
2.5.22 Reserves
2.5.23  Segment reporting


7
 2.5.24  Other s (Please Specify)

*Applicable  for the first financial reporting period under  SLFRS 9.

3 Segment information  (as per SLFRS 8)

4 Net Interest Income
 Bank  Group
In Rupee s Million  20XX  20XX  20XX  20XX
Interest income
 Cash and cash equivalents
 Balances with central banks
 Placements with banks
 Derivative financial instruments
 Financial assets recognized through profit or loss
       -  measured at fair value
      -  designated at fair value
 Financial assets at amortised cost
      - loans and advances
      - debt and other instruments
 Financial assets measured at fair value through other
 comprehensive income

 Others  (Please specify)
Total interest income
Interest expenses
Due to banks
Derivative  financial instruments
Financial liabilities  recognized  through profit or
loss
        – measured at fair value
        – designated at fair value
Financial liabilities at amortised cost
        – due to depositors
        - due to debt securities holders
        – due to other borro wers
Others  (Please specify)
Total interest expenses
Net interest income

a.      Net interest income from Sri Lanka Government Securities
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Interest income
Less: Interest expenses
Net interest income from Sri Lanka
Government Securities


8
 5 Net Fee and Commission Income
 Bank  Group
In Rupee s Million  20XX  20XX  20XX  20XX
Fee and commission income
Fee and commission expenses
Net fee and commission income
Comprising
Loan s
Cards
Trade and remittances
Investment banking
Deposit s
Guarantees
Others  (Please specify)
Net fee and commission income

6 Net G ain/( Loss) from Trading
 Bank  Group
In Rupee s Million  20XX  20XX  20XX  20XX
Foreign exchange
From banks
From other  customers
Fixed income securities
Equity securities
Derivative financial instruments
Others  (Please specify)
Total

7 Net Fair Value G ains/(Losses) From Financial Instruments at Fair Value Through
Profit or Loss
 Bank  Group
In Rupee s Million  20XX  20XX  20XX  20XX
Gains on f inancial assets at fair value  through
profit or loss
Losses on financial assets at fair value through
profit or loss
Gains on f inancial liabilities at fair value
through profit or loss
Losses  on financial liabilities at fair value
through profit or loss
Total


9
 8 Net Gains/(Losses) F rom Derecognition of Financial A ssets
 Bank  Group
In Rupee s Million  20XX  20XX  20XX  20XX
Recognised at:
Fair value through profit or loss
Amortised cost
Fair value through other comprehensive
income
Total

9 Net O ther Operating Income
 Bank  Group
In Rupee s Million  20XX  20XX  20XX  20XX
Gain/(Loss)  on investment properties
Gain /(Loss)  on sale of property, plant and
equipment
Gain/(Loss) on revaluation of foreign
exchange
Recovery of loans written -off
Less: Loans written off
Others (Please specify)
Total

10 Impairment Charges
 Bank  Group
In Rupee s Million  20XX  20XX  20XX  20XX
Financial assets at amortised cost - loans and
advances (Note 21(b))
Stage 1
Stage 2
Stage 3
Financial assets at amortised cost – debt
instruments (Note 22(b))
            Stage 1
            Stage 2
            Stage 3
Financial assets measured at fair value through
other comprehensive income (Note 23(b))
            Stage 1
            Stage 2
            Stage 3
Contingent liabilities & commitments (Note
45(a))
Stage 1
Stage 2
Stage 3
Investment in subsidiaries ( Note 24(a))
Investments in associates and joint ventures
(Note 25(a))


10
 Property, plant and equipment (Note 26(c))
Investment properties ( Note 27(b))
Others (Please specify)
Total

11 Personnel Expenses
 Bank  Group
In R upees  Million  20XX  20XX  20XX  20XX
Salary and bonus
Contributions to defined contribution /benefit
plans
Provision for defined benefit obligations  (Note
36)
Share based expenses
Others
Total

12 Other Expenses
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Directors’ emoluments
Auditors’ remunerations
Non-audit fees to auditors
Professional and legal expenses
Operating lease expenses
Office administration and establishment
expenses
Others (Please specify)
Total

13 Tax Expenses
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Current tax expense
Current year
Prior years’ provision
Deferred tax expense
Effect of change in tax rates
Temporary differences
Prior years’ provision
Total


11
 a. Reconciliation of tax expenses
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Profit/(loss) before tax
Income tax for the period (Accounting profit
@ applicable tax rate)
Adjustment in respect of current income tax of
prior periods
Add: Tax effect of expenses that are not
deductible for tax purposes
(Less): Tax effect of expenses that are
deductible for tax purposes
Tax expense for the period

b. The deferred tax (credit)/charge in the income statement comprise  of the following
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Deferred tax assets
Deferred tax liabilities
Other temporary differences
Deferred tax (credit)/charge to income
statement

14 Earnings Per Share
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Net profit attributable to ordinary equity holders
Adjust:
Interest on preference shares
Interest on convertible bond s
Net profit attributable to ordinary equity holders
adjusted  for the effect of dilution
Weighted average number of ordinary shares for
basic earnings per share
Effect of dilution
Convertible bonds
Convertible preference shares
Others
Weighted average number of ordinary shares
adjusted for the effect of dilution
Basic earnings per ordinary share
Diluted earnings per ordinary share


12
 15 a. Analysis of Financial Instruments by Measurement Basis  – Bank Current year

In Rupees Million  AC FVPL  FVOCI  Total
ASSETS
Cash and cash equivalents
Balances with central banks
Placements with banks
Derivative financial instruments
Loans and advances
Debt instruments
Equity instruments
Others (specify)

Total financial assets

In Rupees Million  AC FVPL  Total
LIABILITIES
Due to banks
Derivative financial instruments

Financial liabilities
      - due to depositors
      - due to debt security holders
      - due to other borrowers
Others (specify)

Total financial liabilities

AC       – Financial assets/liabilities measured at amortised cost
FVPL   – Financial assets/liabilities measured at fair value through profit or loss
FVOCI – Financial assets measured at fair value through other comprehensive income

b. Bank  - Previous year (20 XX)

In Rupees Million  AC FVPL  FVOCI  Total
ASSETS
Cash and cash equivalents
Balances with central banks
Placements  with banks
Derivative  financial instruments
Loans and advances
Debt instruments
Equity instruments
Others (specify)

Total financial assets

In Rupees Million  AC FVPL  Total
LIABILITIES
Due to banks
Derivative  financial instruments

Financial liabilities
      - due to depositors


13
       - due to other borrowers
Financial liabilities at amortised
cost
      - due to depositors
      - due to debt security holders
      - due to other borrowers
Other (specify)
Total financial liabilities

c. Group  - Current year (20 XX)  (as per 15(a) above)

d. Group  - Previous year (20 XX)  (as per 15(b) above)

16 Cash and Cash Equivalents
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Cash in hand
Balances with banks
Money at call and short notice
Total

17 Balances with Central Banks
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Statutory balances with central banks
Central bank of Sri Lanka
Other central banks
Non-statutory balances with central banks
Central bank of Sri Lanka
Other central banks
Total balances with central banks

18 Placements with Banks
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Bank 1
Bank 2
Bank 3
Total


14
 19 Derivative  Financial Instruments
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Interest rate derivatives
Interest rate swaps
Interest rate futures
Interest rate options
Others (Please specify)
Foreign currency derivatives
Currency swaps
Forward foreign exchange contracts
Others(Please specify)
Others (Please specify)
Total

20 Financial Assets Recognized Through Profit or L oss
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Measured at fair value
Sri Lanka Government Securities  (separately
by instrument -wise)
Equity  securities
Corporate d ebt securities
Other s (Please specify)
Sub total
Designated  at fair value
Sri Lanka Government Securities  (separately
by instrument -wise)
Equity  securities
Corporate d ebt securities
Other s (Please specify)
Sub total
Total

a. Analysis
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
By collateralisation
Pledged as collateral
Unencumbered
Gross t otal
By currency
   Sri Lankan Rupee
   United States Dollar
Gross total


15
 21 Financial Assets at Amortised  Cost – Loans and A dvances
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Gross loans and advances
                 Stage 1
                 Stage 2
                 Stage 3
(Less): Accumulated impairment under:
                 Stage 1
                 Stage 2
                 Stage 3

Net loans and advances

a. Analysis
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
By product
   Overdrafts
Trade finance
Lease rental receivable
Credit cards
Pawning
Staff  loans
Term loans
Short -term
Long -term
Others
Sri Lanka Government Securities (separately by
instrument -wise)
Others (Please specify)
Gross total
By currency
Sri Lankan Rupee
United States Dollar
Great Britain Pound
Others (Please specify)
Gross total
By industry
Agriculture and fishing
Manufacturing
Tourism
Transport
Construction
Traders
New economy
Others
Gross total


16
 b. Movements in  impairment during the year
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Stage 1
Opening balance as at DD MM YY
Charge/(Write back) to income statement
Write-off during the year
Other movements
Closing balance at DD MM YY
Stage 2
Opening balance as at DD MM YY
Charge/(Write back) to income statement
Write -off during the year
Other movements
Closing balance at DD MM YY
Stage 3
Opening balance as at DD MM YY
Charge/(Write back) to income statement
Write -off during the year
Other movements
Closing balance at DD MM YY

c. Lease rentals receivable (Disclose as per LKAS 17)
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Please specify

Total

22 Financial Assets at Amortised Cost – Debt and O ther Instruments
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Sri Lanka Government securities (separately
by instrument -wise)
Corporate debt instruments
Trust certificates
Others (please specify)
Total

a. Analysis
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
By collateralization
   Pledged as collateral
   Unencumbered
Gross total
By currency
Sri Lanka n Rupee
United State s Dollar


17
 Others ( Please specify )
Gross total

b. Movements in impairment during the year
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Stage 1
Opening balance as at DD MM YY
Charge/(Write back) to income statement
Write -off during the year
Other movements
Closing balance at DD MM YY
Stage 2
Opening balance as at DD MM YY
Charge/(Write back) to income statement
Write -off during the year
Other movements
Closing balance at DD MM YY
Stage 3
Opening balance as at DD MM YY
Charge/(Write back) to income statement
Write -off during the year
Other movements
Closing balance at DD MM YY

23 Financial Assets at Fair Value Through Other Comprehensive I ncome
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Sri Lanka Government Securities  (separately
by instrument -wise)
Equity securities
Corporate d ebt securities
Other s
(Less): Impairment
Net financial assets at fair value through
other comprehensive income

a. Analysis
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
By collateralisation
Pledged as collateral
Unencumbered
Gross total
By currency
   Sri Lankan Rupee
   United States Dollar
   Others (Please specify)
Gross total


18
 b. Movements in impairment during the year
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Stage 1
Opening balance as at DD MM YY
Charge/(Write back) to income statement
Write -off during the year
Other movements
Closing balance at DD MM YY
Stage 2
Opening balance as at DD MM YY
Charge/(Write back) to income statement
Write -off during the year
Other movements
Closing balance at DD MM YY
Stage 3
Opening balance as at DD MM YY
Charge/(Write back) to income statement
Write -off during the year
Other movements
Closing balance at DD MM YY

24 Investment s in Subsidiaries
 Bank
In Rupees Million  20XX  20XX
Quoted equity investments
Unquoted equity investments
(Less): Impairment
Net total
Note:  Please provide details of subsidiaries  separately .

a. Movements in Impairment during the Year
 Bank
In Rupees Million  20XX  20XX
Opening balance at DD MM YY
Charge/(Write back) to income statement
Net w rite-off during the year
Other  movements
Closing balance at DD MM YY

25 Investments in Associates and Joint Ventures
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Associates
Unquoted equity investments
Quoted equity investments
(Less): Impairment
Sub total


19
 Joint Ventures
Unquoted equity investments
Quoted equity investments
(Less): Impairment
Sub total
Total
Note:  Please provide details of associates and joint ventures separately .

a. Movements in Impairment during the Year
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Associates
Opening balance at DD MM YY
Charge/(Write back) to income statement
Net write -off during the year
Other  movements
Closing balance at DD MM YY
Joint Ventures
Opening balance at DD MM YY
Charge/(Write back) to income statement
Net write -off during the year
Other  movements
Closing balance at DD MM YY

26 Property, Plant and Equipment

a. Property, Plant and Equipment -Bank
 Bank 20 XX
In Rupees Million  Land and
Buildings  Leasehold
Properties  Computer
Hardware  Computer
Software  Office
Equipment,
Furniture
and F ittings  Others  Total
20XX(Current year)
Cost /fair value
Opening balance at DD MM YY
Additions
Disposals
Exchange rate variance
Adjustments
Closing balance at DD MM YY
(Less ): Accumulated depreciation
Opening balance at DD MM YY
Charge for the year
Additions
Disposals
Exchange rate variance
Adjustments
Closing balance at DD MM YY
(Less): Impairment
Net book value at DD MM YY


20
 Market value at DD MM YY

20XX (Previous year )
Cost /fair value
Opening balance at DD MM YY
Additions
Disposals
Exchange rate variance
Adjustments
Closing balance at DD MM YY
(Less ): Accumulated depreciation
Opening balance at DD MM YY
Charge for the year
Additions
Disposals
Exchange rate variance
Adjustments
Closing balance at DD MM YY
(Less): Impairment
Net book value at DD MM YY
Market Value at DD MM YY

b. Property, Plant and Equipment - Group  (as per 2 6(a) above)

c. Movements in Impairment during the Year
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Opening balance at DD MM YY
Charge/(Write back) to income statement
Net write -off during the year
Exchange rate variance and other adjustments
Closing balance at DD MM YY

27 Investment Properties
a.  Investment Properties at Cost/fair value

Bank
Group
In Rupees Million  20XX  20XX  20XX  20XX
Cost /fair value
Opening balance at DD MM YY
Additions
Disposals
Exchange rate variance
Adjustments
Closing balance at DD MM YY
(Less ): Accumulated depreciatio n
Opening balance at DD MM YY
Charge for the year
Additions


21
 Disposals
Exchange rate variance
Adjustments
Closing balance at DD MM YY
(Less): Impairment
Net book value at DD MM YY
Market  value at DD MM YY

b. Movements in Impairment during the Year
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Opening balance at DD MM YY
Charge/ (Write back) to income statement
Net write -off during the year
Exchange rate variance and o ther adjustments
Closing balance at DD MM YY

28 Goodwill and Intangible Assets
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Goodwill
Opening balance DD MM YY
Adjustments
(Less): Impairment
Sub-total (closing balance at DD MM YY)
Other Intangible Assets
Opening balance at DD MM YY
Adjustments
(Less): Impairment
Sub-total (closing balance at DD MM YY)
Total

29 Deferred Tax Assets/ (Liabilities )
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Opening balance DD MM YYYY
Charge for the year recognized in
     - profit and loss
     - other comprehensive income

Closing balance DD MM YYYY


22
 30 Other Assets
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Cost
Receivables
Deposits and prepayments
Sundry debtors
Others ( Please specify )
Total

31 Due to Banks
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Borrowings
Securities sold under repurchase (repo)
agreements
Others  (Please specify)
Total

32 Derivative  Financial Instruments
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Interest rate derivatives
Interest rate swaps
Interest rate options
Others (Please specify)
Foreign exchange derivatives
Currency swaps
Forward foreign exchange contracts
Others (Please specify)
Others (Please specify)
Total

33 Financial liabilities recognized through profit or loss
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Measured at fair value
Debt securities
Due to non -bank customers
Other financial liabilities
Sub total
Designated at fair value
Debt securities
Due to non -bank customers
Other financial liabilities
Sub total
Total


23
 34 Financial liabilities at amortised cost
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Due to depositors
Debt securities issued by the bank
Securities sold under repurchase (repo)
agreements
Others (Please specify)
Total

a. Analysis of amount due to depositors
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
By product
Demand deposits (current account s)
Savings deposits
Fixed deposits
Other deposits  (Please specify)
Total
By currency
Sri Lanka Rupee
United State s Dollar
Great Britain P ound
Others ( Please specify )
Total

35 Debt Securities Issued
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Issued by the bank
Issued by other subsidiaries
Total
Due within 1 year
Due after 1 year
Total

a. Details of Debt Securities Issue d
Type  Face
Value
In
Rupees
Millions  Interest
Rate and
Repayment
Terms  Issue
Date  Maturity
Date  Bank  Group
20XX  20XX  20XX  20XX
Issued by the bank
(i)
(ii)
Sub total


24
 Issued by other subsidiaries
(i)
(ii)
Sub total
Total

36 Retirement benefit obligations
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Present value of defined benefit obligation
Less: Fair value of plan assets
Total

37 Current  Tax Liabilities
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Opening balance DD MM YYYY
Charge for the year
Closing balance DD MM YYYY

38 Other Provisions
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Please specify
Total

39 Other Liabilities
 Bank
In Rupees Million  20XX  20XX
Sundry creditors
Interest payable
Impairment in respect of off -balance sheet
credit exposures (Note 10)
Other payables
Total

40 Due to subsidiaries
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Please specify
Total


25
 41 Stated Capital/Assigned Capital
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Please specify
Total

42 Statutory Reserve Fund
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Opening balance at DD MM YY
Transfer s during the period
Closing balance at DD MM YY

43 Retained Earnings
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Opening balance at DD MM YY
Profit for the year
Transfer s to other reserves
Dividend
Closing balance at DD MM YY

44 Other Reserves

a. Bank - Current year (20XX)
In Rupees Million  Opening balance
at DD MM YY  Movement/ transfers  Closing balance at
DD MM YY
General reserve
Revaluation reserve
Cash flow hedge reserve
Foreign currency translation
reserve
OCI reserve
Others(please specify)
Total

b. Bank – Previous year (20XX)

In Rupees Million  Opening balance
at DD MM YY  Movement/ transfers  Closing balance at
DD MM YY
General reserve
Revaluation reserve
Cash flow hedge reserve
Foreign currency translation
reserve
OCI reserve
Others  (please specify)
Total


26

c. Group  - Current year (20XX)  (as per 44 (a) above)

d. Group - Previous year (20XX)  (as per 44 (b) above)

45 Non-controlling Interests
 Group
In Rupees Million  20XX  20XX
Please specify

Total

46 Contingent Liabilities and Commitments
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Guarantees
Bonds
Letters of credit
Other contingent items
Undrawn loan commitments
Others (Please specify)
Total

a. Movements in Impairment during the Year
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Opening balance at DD MM YY
Charge/ (Write back) to income statement
Net write -off during the year
Exchange rate variance and other adjustments
Closing balance at DD MM YY

47 Related Party Disclosures
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Please specify details

48 Net Assets Value per Ordinary Share
 Bank  Group
In Rupees Million  20XX  20XX  20XX  20XX
Please specify


27
 49 Other Disclosure Requirements
While complying with the disclosure requirements of all applicable Sri Lanka Accounting
Standards, t he following minimum disclosure requirements are applicable for all licensed
banks on standalone basis  and on consolidated basis f or the financial reporting periods
beginning on or after 01.01.201 8 and shall be d isclosed either on the face of financial
statements or  on the notes.
1. Information about the significance of financial instruments  for financial position and
performance
1.1 Statement of Financial Position
1.1.1  Disclosures on categories of financial assets and financial liabilities  (refer notes to the
financial statements).
1.1.2 Other disclosures
(i) Special disclosures about financial assets and financial liabilities designated to be
measured at fair value through profit or loss, including disclosures about credit risk
and market risk, changes in fair values attributable to these risks and the methods
of measurement .
(ii) Reclassifications of financial instruments from one category to another .
(iii) Information about financial assets pledged as collateral and about financial or non -
financial assets held as collateral .
(iv) Reconciliation of the impairment allowance account for credit losses by class of
financial assets .
(v) Information about compound financial instruments with multipl e embedded
derivatives .
(vi) Breaches of terms of loan agreements .

1.2 Statement of Comprehensive Income
1.2.1  Disclosures on items of income, expense, gains and losses  (refer notes to the financial
 statements).
1.2.2 Other disclosures :
(i) Total interest income and total interest expense for those financial instruments that
are not measured at fair value through profit and loss .
(ii) Fee income and expense .
(iii) Amount of impairment losses by class of financial assets .
(iv) Interest income on impaired financial assets .

1.3 Other disclosures


(iv) Interest income on impaired financial assets .

1.3 Other disclosures
1.3.1 Accounting policies for financial instruments
1.3.2 Financial liabilities designated as at FVTPL
(i) If a bank  is presenting  the effects of changes in that financial liability’s credit risk
in other comprehensive income (OCI) :
- any transfers of the cumulative gain /loss within equity during the period,
including the reason s for the transfer s;


28
 - if the liability is derecognised during the period, then the amount (if any)
presented in OCI that was realised at derecognition ;
- detailed description of the methodologies used to determine whether  presenting
the effects of changes in a liability’s credit risk in OCI would create or  enlarge
an accounting mismatch in profit or loss ; and
(ii) Detailed description, i f the effects of changes in a liability’s credit risk  are
presented in profit or loss .
1.3.3 Investments in equity instruments designated as at FVOCI
(i) Details of  equity instruments that have been designated as at FVOCI  and the
reasons for the designation;
(ii) Fair value of each investment at the reporting date;
(iii) Dividends recognised during the period, separately for investments derecognised
during the reporting period and those held at the reporting date;
(iv) Any transfers of the cumulative gain or loss within equity during the period and
the reason s for those transfe rs;
(v) If investments in equity instruments measured at FVOCI are derecognized during
the reporting period,
- reasons for disposing of the investments;
- fair value of the investments at the date of derecognition; and
- the cumulative gain or loss on disposal.
1.3.4 Reclassifications of financial assets
(i) For all reclassifications of financial assets in the current or previous reporting
period :
- date of reclassification;
- detailed explanation of the change in the business model and a qualitative
description of its effect on the financial statements; and
- the amount reclassified into and out of each category.
(ii) For reclassifications from F VTPL to amortised cost or FVOCI :
- the effective interest rate (EIR) determined on the date of reclassification;  and
- the interest revenue recogni sed.
(iii) For reclassifications from FVOCI to amortised cost, or from FVTPL to amortised
cost or FVOCI:


cost or FVOCI:
- the fair value of the financial assets at the reporting date; and
- the fair value gain or loss that would have been recognised in profit or  loss or
OCI during  the reporting period if the financial assets had not been  reclassified.
1.3.5 Information on hedge accounting
1.3.6 Information about the fair values of each class of financial asset and financial liability,
along with:
(i) Comparable carrying amounts .
(ii) Description of how fair value was determined .
(iii) The level of inputs  used in determining fair value .
(iv) Reconciliations of movements between levels of fair value measurement hierarchy ,
additional disclosures for financial instruments for which  fair value is determined
using level 3 inputs .
(v) Information  if fair value cannot be reliably measured .


29
 2. Information about the nature and extent of risks arising from financial instruments
2.1 Qualitative disclosures
2.1.1 Risk exposures for each type of financial instrument
2.1.2 Management's objectives, policies, and processes for managing those risks
2.1.3 Changes from the prior period
2.2 Quantitative disclosures
2.2.1 Summary of quantitative data about exposure to each risk at the reportin g date.
2.2.2 Disclosures about credit risk, liquidity risk, market risk, operational risk, interest rate risk
and how these risks are managed.
(i) Credit Risk
(a) Maximum amount of exposure (before deducting the value of collateral),
description of collateral, information about credit quality of financial assets
that are neither past due nor impaired and information about credit quality of
financial assets.
(b) For fin ancial assets that are past due or impaired, disclosures on age, factors
considered in determining as impaired and the description of collateral on each
class of financial asset.
(c) Information about collateral or other credit enhancements obtained or called .
(d) Credit risk management practices :
- Information about credit risk management practices and how they relate to the
recognition and measurement of expected credit losses (ECL), including the
methods, assumptions and information used to measure ECL.
- Quantitative and qualitative information to evaluate the amounts in the
financial statements arising from ECL, including changes and the reasons for
those changes.
- How the bank determines whether the credit risk of financial instruments has
increased signi ficantly since initial recognition, including whether and how
financial instruments are considered to have low credit risk, including the
classes of financial instruments to which the low credit risk exception has been
applied; and the presumption that fin ancial assets with contractual payments


applied; and the presumption that fin ancial assets with contractual payments
more than 30 days past due have a significant increase in credit risk has been
rebutted;
- The bank’s definitions of default for different financial instruments, including
the reasons for selecting those definitions;
- How instruments are grouped if ECL are measured on a collective basis;
- How the bank determines that financial assets are credit -impaired;
- The bank’s write -off policy, including the indicators that there is no reasonable
expectation of recovery; and
- How the modification requirements have been applied, including how the bank
determines whether the credit risk of a financial asset that has been modified
while subject to a lifetime ECL allowance has improved to the extent that the
loss allowance reverts to being  measured at an amount equal to 12 -month ECL
and monitors the extent to which the loss allowance on those assets
subsequently reverts to being measured at an amount equal to lifetime ECL.
(e) ECL calculations


30
 - Basis of the inputs, assumptions and the estimatio n techniques used when ,
- estimating 12 -month and lifetime ECL ;
- determining whether the credit risk of financial instruments has increased
significantly since initial recognition; and
- determining whether financial assets are credit -impaired.
- How forward -looking information has been incorporated into the  determination
of ECL, including the use of macro -economic information; and
- changes in estimation techniques or significant assumptions made during  the
reporting period and the reasons for those cha nges.
(f) Amounts arising from ECL
- Provide reconciliation  for each class of financial instrument  [Financial assets
measured at AC, Financial assets mandatorily measured at FVOCI, Loan
commitments when there is a n obligation to extend credit ( except those
measu red at Fair Value through Profit or Loss ), Financial guarantee  contracts
(except those measured at Fair Value through Profit or Loss ), Lease
receivables within the scope of LKAS 17: Leases, Contract assets within the
scope of SLFRS 15: Revenue fro m contrac ts with customers etc…]  of the
opening  balance to the closing balance of the impairment loss allowance.
- Explain the reasons for changes in the loss allowances in the reconciliation.
(g) Collateral s
- Amount that best represents the bank ’s maximum exposure to credit  risk at the
reporting date, without taking account of any collateral held or  other credit
enhancements;
- Narrative description of collateral held as security and other credit
enhancements (e xcept for lease receivables ), including:
- discussion on the n ature and quality of the collateral s held;
- explanation of any significant changes in quality as a result of a
deterioration or changes in the bank ’s collateral policies during the
reporting period;
- information about financial instruments for which the bank  has not


reporting period;
- information about financial instruments for which the bank  has not
recognised a loss allowance because of the collateral;
- quantitative information about the collateral held as security and other
credit  enhancements ;
- information about the fair value of the collateral and other credit
enhancements, or to quan tify the exact value of the collateral that was
included  in the calculation of ECL.
(h) Written -off assets
- Contractual amount outstanding of financial assets written off  during the
reporting period that are still subject to enforcement activity.
(i) For other disclosures, refer Pillar  III disclosures of the Banking Act Directions
No. 01 of 2016 on Capital Requirements under Basel III for Licensed Banks .
(ii) Liquidity Risk
(a) A maturity analysis of financial assets and liabilities.
(b) Description of approach t o risk management.
(c) For other disclosures, refer Pillar III disclosures of the Banking Act Directions
No. 01 of 2016 on Capital Requirements under Basel III for Licensed  Banks .


31
 (iii) Market Risk
(a) A sensitivity analysis of each type of market risk to which the bank is  exposed.
(b) Additional information, if the sensitivity analysis is not representative of the
bank 's risk exposure.
(c) For other disclosures, refer Pillar III disclosures of the Banking Act Directions
No. 01 of 2016 on Capital Requirements under Basel III for Licensed Banks.
(iv) Operational Risk
For other disclosures, refer Pillar III disclosures of the Banking Act Directions No. 01
of 2016 on Capital Requirements under Basel III for Licensed Banks.
(v) Equity risk in the banking book
(a) Qualitative disclosures
• Differentiation between holdings on which capital gains are expected and
those taken under other objectives including for relationship and strategic
reasons.
• Discussion of important policies covering the valuation and accounting of
equity holdings in the banking book.
(b) Quantitative disclosures
• Value disclosed in the statement of financial position of investments, as
well as the fair value of those investments; for quoted securities, a
comparison to publicly quoted share values where the share price is
materially different from fair value.
• The types and nature of investments
• The cumulative realised gains/(losses) arising from sales and liquidations in
the reporti ng period.
(vi) Interest rate risk in the banking book
(a) Qualitative disclosures
 Nature of interest rate risk in the banking book (IRRBB) and key assumptions
(b) Quantitative disclosures
The increase/(decline) in earnings or economic value (or relevant measure used
by management) for upward and downward rate shocks according to
management’s method for measuring IRRBB, broken down by currency (as
relevant).
2.2.3 Information on concentrations of risk

3. Other disclosures
3.1 Capital  - Refer Pillar III disclosures of the Banking Act Directions No. 01 of 2016 on
Capital Requirements under Basel III for Licensed Banks .


Annex II

SPECIFIED FORMAT FOR THE PUBLICATION
OF QUARTERLY FINANCIAL STATEMENTS
AND OTHER INFORMATION
OF LICENSED BANKS IN THE PRESS AND WEBSITES

For Financial Quarter s commencing  on or after 01.01.2019


1
 …………..BANK
INCOME STATEMENT
FOR THE PERIOD  ENDED ………….

 Bank  Group
In Rupees Millions  Current
Period  Previous
Period  Current
Period  Previous
Period
 From
DD/MM/YY
To
DD/MM/YY  From
DD/MM/YY
To
DD/MM/YY  From
DD/MM/YY
To
DD/MM/YY  From
DD/MM/YY
To
DD/MM/YY
Interest income
Interest expenses
Net interest income
Fee and commission income
Fee and commission expenses
Net fee and commission income
Net gain s/(loss es) from trading
Net fair value gains/(losses)  on:
financial assets at fair value through profit or loss
financial liabilities at fair value through profit or loss
Net gains/(losses) on derecognition of financial assets :
at fair value through profit or loss
at amortised cost
at fair value through other comprehensive income
Net other operating income
Total operating income
Impairment charges
Net operating income
Personnel expenses
Depreciation and amortization expenses
Other expenses
Operating profit/(loss) before VAT & NBT on
financial services
Value Added Tax ( VAT ) on financial services
Nation Building Tax (NBT) on financial services
Operating profi t/(loss) after VAT  & NBT on financial
services
Share of profits of associates and joint ventures
Profit/(loss) before tax
Income t ax expenses
Profit/(loss) for the period
Profit attributable to:
Equity holders of the parent
Non-controlling  interests
Earnings per share on profit
Basic earnings per ordinary share
Diluted earnings per ordinary share


2
 …………BANK
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD  ENDED ………….
 Bank  Group
In Rupees Millions   Current
Period  Previous
Period  Current
Period  Previous
Period
 From
DD/MM/YY
To
DD/MM/YY  From
DD/MM/YY
To
DD/MM/YY  From
DD/MM/YY
To
DD/MM/YY  From
DD/MM/YY
To
DD/MM/YY
Profit/(loss) for the period

Items that  will be reclassified to income statement
Exchange differences on translation of foreign operations
Net gains/(losses) on cash flow hedges
Net gains/(losses) on investments in debt instruments
measured at fair value through other comprehensive
income
Share of profits of associates and joint ventures
Debt instruments at fair value thr ough other
comprehensive income
Others (specify)
Less: Tax expense relating to i tems that will be reclassified
to income statement

Items that will not be reclassified to income statement
Change in fair value on investments in equity instruments
designated at fair value through other comprehensive
income
Change in fair value attributable to change in the Bank’s
own credit risk on financial liabilities designated at fair
value through profit or loss
Re-measurement of post -employment benefit obligations
Changes in revaluation surplus
Share of profits of associates and joint ventures
Others  (specify)
Less: Tax expense relating to  items that will not be
reclassified to income statement
Other Comprehensive Income  (OCI)  for the
period, net of tax es
Total comprehensive income for the period
Attributable to:
Equity holders of the parent
Non-controlling interests


3
 ………………..BANK
STATEMENT OF FINANCIAL POSITION
AS AT  ……………….
 Bank  Group
In Rupees Millions  Current
Period  Previous
Period  Current
Period  Previous
Period
 As at
DD/MM/YY  As at
DD/MM/YY  As at
DD/MM/YY  As at
DD/MM/YY
Assets
Cash and cash equivalents
Balances with central banks
Placements with banks
Derivative financial instruments
Financial assets  recognized through profit or loss
       - measured at fair value
       - designated at fair value
Financial assets at amortised cost
       - loans and advances
       - debt and other instruments
Financial assets  measured at fair value through other comprehensive
income
Investment in subsidiaries
Investments in associates and joint ventures
Property, plant and equipment
Investment properties
Goodwill and intangible assets
Deferred tax assets
Other assets

Total assets
Liabilities
Due to banks
Derivative  financial instruments
Financial liabilities recognized through profit or loss
       - measured at fair value
       - designated at fair value
Financial liabilities at amortised cost
       - due to depositors
       - due to debt securities holders
       - due to other borrowers
Debt securities issued
Retirement benefit obligations
Current tax liabilities
Deferred tax liabilities
Other provisions
Other liabilities
Due to subsidiaries
Total liabilities
Equity
Stated capital/Assigned capital
Statutory reserve fund
OCI reserve
Retained earnings
Other reserves
Total shareholders’ equity
Non-controlling interests
Total equity
Total equity and liabilities
Contingent liabilities and commitments
Memorandum Information
Number of Employees
Number of Branches
Note: Amounts stated are  net of impairment and depreciation.


4
 ……………BANK
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD  ENDED …………….
Bank /Group
In Rupees Millions  Stated capital/Assigned capital   Reserves  Total  Non-
controlling
interest  Total
equity  Ordinary
voting
shares  Ordinary
non-
voting
shares  Assigned
capital  Statutory
Reserve
fund  OCI
reserve  Revaluation
reserve  Retained
earnings  Other
reserves
Balance as at DD/MM/YY
(Opening balance)

Total comprehensive income for
the period

Profit/(loss) for the year (net of
tax)

Other comprehensive income (net
of tax)

Total c omprehensive income for
the period

Transactions with equity
holders, recognised directly in
equity

Share issue/increase of assigned
capital

Share options exercised
Bonus issue

Rights issue

Transfers to reserves during the
period

Dividends to equity holders

Profit transferred to head office

Gain/(loss) on revaluation of
Property, Plant and Equipment (if
cost method is adopted)

Others (Please specify)

Total transactions with equity
holders

Balance as at DD/MM/YY
(Closing balance)

  Note: First day impact due to adop tion of ‘SLFRS 9: Financial Instruments ’ need s to be presented separately .


5
 …………………..BANK
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED ………….
In Rupees Millions  Bank  Group
Current
Period  Previous
Period  Current
Period  Previous
Period
 DD/MM/YY  DD/MM/YY  DD/MM/YY  DD/MM/YY
Cash flows from operating activities
Interest receipts
Interest payments
Net commission receipts
Trading income
Payments to employees
VAT & NBT on financial services
Receipts from other operating activities
Payments on  other operating activities
Operating profit before change in operating assets & liabilities

(Increase) / decrease in operating assets
Balances with Central Bank of Sri Lanka
Financial assets at amortised cost – loans & advances
Other assets (please specify)

Increase / (decrease) in operating liabilities
Financial liabilities at amortised cost – due to depositors
Financial liabilities at amortised cost – due to  debt securities holders
Financial liabilities at amortised cost – due to other borrowers
Other liabilities (please specify)
Net cash generated from operating activities before income tax

Income tax paid
Net cash  (used in) / from  operating activities

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from the sale of property, plant and equipment
Purchase of financial investments
Proceeds from the sale and maturity of financial investments
Net purchase of intangible assets
Net cash flow from acquisition of investment in subsidiaries, joint
ventures and associates
Net cash flow from disposal of subsidiaries, associates and joint
ventures
Dividends received from investment in subsidiaries and associates
Others (please specify)
Net cash (used in)  / from investing activities

Cash flows from financing activities
Net proceeds from the issue of ordinary share capital


Net proceeds from the issue of ordinary share capital
Net proceeds from the issue of other equity instruments
Net proceeds from the issue of subordinated debt
Repayment of subordinated debt
Interest paid on subordinated  debt
Dividend paid to non -controlling interest
Dividend paid to shareholders of the parent company
Dividend paid to holders of other equity instruments
Others (please specify)
Net cash (used in) / from financing activities

Net increase  / (decrease) in cash & cash equivalents
Cash and cash equivalents at the beginning of the period
Exchange difference in respect of cash & cash equivalent s
Cash and cash equivalents at the end of the period

Note: Banks have the option to use one of the two methods specified in LKAS 7 for the preparation of the statement of cash flows.


6
 …………BANK
ANALYSIS OF FINANCIAL INSTRUMENTS ON MEASUREMENT BASIS
AS AT ……………….

a.  Bank - Current period
In Rupees Millions  AC FVPL  FVOCI  Total
ASSETS
Cash and cash equivalents
Balances with central banks
Placements with banks
Derivative financial instruments
Loans and advances
Debt instruments
Equity instruments
Others (specify)

Total financial assets

In Rupees Millions  AC FVPL  Total
LIABILITIES
Due to banks
Derivative financial instruments

Financial liabilities
     - due to depositors
     - due to debt securities holders
     - due to other borrowers
Others (specify)

Total financial liabilities

AC       - Financial assets/liabilities measured at amortised cost
FVPL   - Financial assets/liabilities measured at fair value through profit or loss
FVOCI - Financial assets measured at fair value through other comprehensive income

b. Bank – Previous period as above

c. Group – Current period as above

d. Group – Previous period as above


7
 …………BANK
ANALYSIS OF LOANS & ADVANCES , COMMITMENTS, CONTINGENCIES AND
IMPAIRMENT
AS AT ……………….

In Rupees Millions  Bank  Group
Current
Period  Previous
Period  Current
Period  Previous
Period
 DD/MM/YY  DD/MM/YY  DD/MM/YY  DD/MM/YY
Product -wise Gross loans & advances
By product – Domestic currency
Overdrafts
Term loans
Lease rentals receivable
Credit cards
Pawning
Other loans (s pecify)
Sub total

By product – Foreign currency
Overdrafts
Term loans
Guarantees
Bonds
Other loans (s pecify)
Sub total
Total

Product -wise commitments and contingencies
By product – Domestic currency
Guarantees
Bonds
Undrawn credit lines
Other commitments (specify)
Other contingencies (specify)
Sub total

By product – Foreign currency
Guarantees
Bonds
Undrawn credit lines
Other commitments (specify)
Other contingencies (specify)
Sub total
Total

Stage-wise impairment on loans &  advances ,
commitments and contingencies
Gross loans and advances, commitments and
contingencies
Less: Accumulated impairment under stage 1
         Accumulated impairment under stage 2
         Accumulated impairment under stage 3
Net value of loans and advances, commitments and
contingencies

Movement of impairment during the period
Under Stage 1
Charge/(Write back) to income statement
Write -off during the year
Other movements
Closing balance at DD/MM/YY

Under Stage 2
Charge/(Write back) to income statement


8
 Write -off during the year
Other movements
Closing balance at DD/MM/YY

Under Stage 3
Charge/(Write back) to income statement
Write -off during the year
Other movements
Closing balance at DD/MM/YY

Total impairment


9
 …………BANK
ANALYSIS OF DEPOSITS
AS AT ……………….

In Rupees Millions  Bank  Group
Current
Period  Previous
Period  Current
Period  Previous
Period
 DD/MM/YY  DD/MM/YY  DD/MM/YY  DD/MM/YY
By product – Domestic currency
Demand deposits (current accounts)
Savings deposits
Fixed deposits
Others (Specify)
Sub total

By product – Foreign currency
Demand deposits (current accounts)
Savings deposits
Fixed deposits
Others (Specify)
Sub total
Total


10
 …………BANK
SELECTED PERFORMANCE INDICATORS
AS AT ……………….  (Based on Regulatory Reporting)
Item  Reporting
Period  Previous Reporting
Period
Regulatory Capital Adequacy  (LKR in Millions)
Common Equity Tier 1
Core (Tier 1) Capital
Total Capital Base
Regulatory Capital Ratios (%)
Common Equity Tier 1 Capital (%) (Minimum Requirement - ….)
Tier 1 Capital Ratio (%) (Minimum Requirement - ....)
Total Capital Ratio (%) (Minimum Requirement - ....)
Leverage Ratio (Minimum Requirement - ....)
Regulatory Liquidity
Statutory Liquid Assets (LKR in Millions)
Statutory Liquid Assets Ratio (%) (Minimum Requirement - 20%)
Domestic Banking Unit (%)
Off-Shore Banking Unit (%)
Total Stock of High -Quality Liquid Assets (LKR in Millions)
Liquidity Coverage Ratio (%) (Minimum Requirement - …. )
 Rupee  (%)
All Currency (%)
Net Stable Funding Ratio (%) - (Minimum Requirement - ....) *
Assets Quality (Quality of Loan Portfolio)
Gross Non -Performing Advances Ratio  (% ) (net of interest in suspense)
Net-Non Performing Advances  (% ) (net of interest in suspense and
provision)
Profitability
Interest Margin (%)
Return on Assets (before Tax) (%)
Return on Equity (%)
* After implementation

CERTIFICATION:

We, the undersigned, being the Chief Executive Officer and the Chief Financial Officer  of ............ Bank jointly certify  that:

(a) the above statements have been prepared in compliance with the format and definitions prescribed by the Central  Bank
of Sri Lanka;
(b) the information contained in these statements have been extracted from the unaudited financial statements of
 the bank unless indicated as audited.

                  (Name)                                    (Name)
(Sgd.) Chief Executive Officer                                             (Sgd.) Chief Financial Officer
          Date: DD/MM/YY                                        Date: DD/MM/YY


No. 01 of 2019MONETARY BOARDCENTRAL BANK OF SRI LANKA2 6 April 2019MONETARY LAW ACT ORDERMAXIMUM INTEREST RATES ON SRI LANKA RUPEE DEPOSITSOF LICENSED BANKSConsidering the high real interest rates on deposits and lending products prevailing in the economy and the need to strengthen and expedite monetary policy transmission through the financial system, and for licensed commercial banks and licensed specialised banks (hereinafter referred to as licensed banks) to reduce interest rates on lending and thereby enhance credit flows to the real economy, the Monetary Board hereby issues an Order on maximum interest rates to be paid in respect of deposit products of licensed banks.1. Empowerment 1.1 under theMonetary Law ActIn terms of Section 104(l)(a) of the Monetary Law Act, No. 58 of 1949, the Monetary Board may from time to time fix the maximum rates of interest which licensed commercial banks and licensedspecialised banks may pay upon various classes of deposits.2. Maximum Interest Rates on LKR deposits2.1 Except as provided for in this Order, the maximum interest rates that may be offered or paid by a licensed bank on Sri Lanka Rupee (LKR) deposits shall;(i) not exceed the interest rates derived in accordance with Table 01 below, and(ii) be based on the Standing Deposit Facility Rate (SDFR) or the Weighted Average Yield Rate (WAYR) of 364-days Treasury Bills (T-bill rate).Table 01: Maximum Interest Rates at Maturity for LKR Deposits of Licensed BanksTenure of DepositMaximum Interest Rate Per annumSavings and other deposits of a tenure of less than 03 months or maturity is not specifiedSDFR - 0.50%Term Deposits03 months and less than 06 monthsT-bill rate - 0.50%06 months and less than 01 yearT-bill rate01 year and less than 02 yearsT-bill rate + 1.00%02 years and less than 03 yearsT-bill rate + 1.50%03 years and less than 05 yearsT-bill rate + 2.00%05 years or moreT-bill rate + 2.50%1


No. 01 of 20190-1= April 2019
3. Applicable SDFR and Yield RateMONETARY BOARD CENTRAL BANK OF SRI LANKAMONETARY LAW ACT ORDER2.2 Further, the rate at which any periodic interest payments are made on term deposits during the tenure of the deposit should be computed so that the Annual Effective Rate (AER) does not exceed the specified maximum interest rates stipulated above.2.3 Notwithstanding the provisions in Order 2.1(i) above, the maximum rate payable by a licensed bank for savings deposits of children under the age of 18 years and for term deposits with a tenure of 01 year or more of senior citizens shall be 50 basis points (0.5%) higher than rates given in Table 01. With respect to joint accounts of senior citizens, all account holders shall be senior citizens in order for the enhanced ratein Order 2.3 to apply.3.1 The reference rates shall be as follows:(i) SDFR for the quarter shall be SDFR as at the end of the immediately preceding quarter.(ii) WAYR of 364 days Treasury Bills for the quarter shall be basedon the simple average of WAYR of last 04 accepted primary auctions for 364 days Treasury Bills in the immediately preceding quarter.3.2 SDFR and WAYR of 364 days Treasury Bills referred to in Order 2.1(i) shall be announced by the Director of Bank Supervision at the end of the months of March, June, September and December of each year which will be applicable for the following quarter.
2


221 April 2019 No. 01 of 2019MONETARY BOARD CENTRAL BANK OF SRI LANKAMONETARY LAW ACT ORDER4. Interest rate applicable to Early Withdrawal4.1 In the case of an early withdrawal of any term deposit prior to its original contracted maturity date, the interest payable on the deposit up to the date of withdrawal shall be computed on the basis of the lower of, the published interest rate of the licensed bank applicable to the completed period prevailing at the time of withdrawal or at a rate of 100 basis points less than the contracted rate. The licensed bank shall at the time of early withdrawal recover any excess interest that may have been paid above the interest amount so computed during the period the deposit was held. However, banks may apply a different formula that would result in the interest and any benefit paid on the early withdrawal of the deposit not exceeding the amount of interest that would have been paid from the application of the formula given in this Direction provided that the basis of calculation is made known to the depositor at the time of making the deposit.5. Exemptions5.1 The maximum rate in Order 2.1 (i) above shall not apply to;(i) the Special Interest Scheme on Fixed Deposits for Senior Citizens provided by the Government of Sri Lanka,(ii) debt securities issued by a licensed bank and listed on a licensed stock exchange, and,(iii) unlisted debt securities issued by a licensed bank that are specifically excluded from this Order by the Monetary Board from time to time.6. Regulatory Reporting6.1 Every licensed bank shall submit details of the interest rates in accordance with the existing requirements of weekly web based return on ‘BSD-WF-13-IR - Interest Rates (“Bank Only” Totals)’.


April 20197. Interpretations 7.1
8. Implementation 8.1MONETARY BOARDCENTRAL BANK OF SRI LANKAMONETARY LAW ACT ORDER No. 01 of 2019In this Order:(i) Term deposits shall mean any deposit other than savings deposits accepted or renewed by a bank with an agreement to repay after a specified time of 03 months or more.(ii) Savings deposits shall mean all interest-bearing accounts to which funds can be credited or from which funds can be withdrawn other than on specified dates.(iii) Senior citizens shall mean persons who are over sixty (60) years of age at the time of accepting or renewal of a deposit.This Order shall come into effect commencing 29 April 2019 and shall be applicable for new deposits, existing savings deposits and at the renewal of term deposits.
Dr. Indrajit CoomaraswamyChairman of the Monetary Board and Governor of the Central Bank of Sri Lanka
4


MONETARY BOARDCENTRAL BANK OF SRI LANKA20 December 2019REGISTERED STOCK AND SECURITIES ORDINANCE AND LOCAL TREASURY BILLS ORDINANCE DIRECTIONSNo. 01 of 2019REPURCHASE AND REVERSE REPURCHASE TRANSACTIONS OF DEALER DIRECT PARTICIPANTS IN SCRIPLESS TREASURY BONDS AND SCRIPLESS TREASURY BILLSIssued under Section 21C(3) of the Registered Stock and Securities Ordinance No. 7 of 1937, as amended and Section 8(2) of the Local Treasury Bills Ordinance No. 8 of 1923, as amended.The Monetary Board issues Directions as follows for the manner in which repurchase and reverse repurchase transactions in Scripless Treasury Bonds and Scripless Treasury Bills shall be carried out by Dealer Direct Participants (DDPs).
Treasury BillsOrdinance1. Empowerment under the1.1 In terms of Section 21C(3) of the Registered Stock and Securities Ordinance No. 7 of 1937, as amended and Section 8(2) of the LocalRegisteredStock andTreasury Bills Ordinance No. 8 of 1923, as amended, the Central Bank may issue Directions to Direct Participants or any category thereof toSecuritiesprovide for the manner and means by which Scripless Treasury BondsOrdinance andand Scripless Treasury Bills, or interests therein, may be purchased,the Localsold, transferred, pledged or encumbered.2. Applicability2.1 These Directions shall be applicable to all repurchase and reverse repurchase transactions in Scripless Treasury Bonds and Scripless Treasury Bills entered into by a DDP, except for Intra Day Liquidity Facility (ILF) transactions and repurchase and reverse repurchase transactions entered into with the Open Market Operations and Standing Facilities of the Central Bank of Sri Lanka (CBSL).Page 1 of 11


MONETARY BOARD CENTRAL BANK OF SRI LANKA20 December 2019REGISTERED STOCK AND SECURITIES ORDINANCE AND LOCAL TREASURY BILLSORDINANCE DIRECTIONS No. 01 of 20192.2 These Directions shall be applicable in addition to the Scripless Treasury Bonds (Transactions) Regulations of No. 02 of 2004 and Scripless Treasury Bills (Transactions) Regulations of No. 02 of 2004 and the LankaSettle System Rules.3. Eligible3.1 For the purposes of these Directions, a DDP shall use only the ScriplessSecurities forTreasury Bonds and Scripless Treasury Bills issued by CBSL on behalfRepurchase andof the Government, as securities for repurchase and reverse repurchaseReversetransactions.RepurchaseTransactions4. Valuation of4.1 Eligible securities used for repurchase and reverse repurchaseEligibletransactions shall be valued at market value. Market value of suchSecurities,eligible securities shall be calculated using the dirty priceHaircutcorresponding to the average of the buying and selling yield quotes forRequirementsthe relevant security, as indicated in the Daily Summary Reportandcompiled based on the information provided by Primary Dealers andReplenishmentcirculated by the Public Debt Department of CBSL, for the relevant dateof Eligibleor any other basis which may be prescribed for this purpose by CBSL.SecuritiesIn the event that the Daily Summary Report for the relevant date is not available at the time of entering into the transaction, the Daily Summary Report for the immediately preceding working day shall be used.4.2 Notwithstanding Direction 4.1 above, a DDP may use any other input to calculate the market value of eligible securities, subject to such alternative input source being;Page 2 of 11


MONETARY BOARDCENTRAL BANK OF SRI LANKA20 December 2019REGISTERED STOCK AND SECURITIES ORDINANCE AND LOCAL TREASURY BILLSORDINANCE DIRECTIONS JVo. 01 of 2019(i) approved by the Director of Bank Supervision (DBS) in case of DDPs which are Licensed Banks and Director of the Department of Supervision of Non-Bank Financial Institutions (DSNBFI) in case of DDPs which are Primary Dealer Companies;(ii) provided for in a documented internal policy of the DDP, and; (iii)consistently applied by the DDP.4.3 A DDP shall assess and agree in writing, with the counterparty, the haircut requirement for each repurchase and reverse repurchase transaction, taking into consideration the tenor of the transaction, maturity date and marketability of the eligible securities, assessment of counterparty risk, requirements of the counterparty and any other factor which is deemed relevant.4.4 Notwithstanding Direction 4.3 above, a DDP shall ensure that, at the time of entering into a repurchase transaction, the market value of eligible securities adequately covers the repurchase value of the securities (maturity value of the repurchase transaction), i.e., amount borrowed by the DDP plus the interest that will accrue on the repurchase transaction over its tenor, with a minimum haircut as specified below.Remaining Term to Maturity of the Eligible SecurityMinimum Haircut (%)up to 1 year4.0more than 1 year and up to 3 years6.0more than 3 years and up to 5 years8.0more than 5 years and up to 8 years10.0more than 8 years12.0Page 3 of 11


MONETARY BOARDCENTRAL BANK OF SRI LANKA20 December 2019REGISTERED STOCK AND SECURITIESORDINANCE AND LOCAL TREASURY BILLS ORDINANCE DIRECTIONS No. 01 of 20194.5 Notwithstanding the Direction 4.3 above, a DDP shall ensure that, at the time of entering into a reverse repurchase transaction, the market value of eligible securities adequately covers the resale value of the securities (maturity value of the reverse repurchase transaction), i.e., amount lent by the DDP plus the interest that will accrue on the reverse repurchase transaction over its tenor, with a minimum haircut as specified below.Remaining Term to Maturity of the Eligible SecurityMinimum Haircut (%)up to 1 year4.0more than 1 year and up to 3 years6.0more than 3 years and up to 5 years8.0more than 5 years and up to 8 years10.0more than 8 years12.04.6 Notwithstanding the Directions 4.4 and 4.5 above, haircuts less than those required by Directions 4.4 and 4.5 above may be used for repurchase and reverse repurchase transactions entered into between two Direct Participants, with the written agreement of both parties.4.7 In the event of the market value of securities falling below the repurchase value of the securities (maturity value of the repurchase transaction), at any time prior to the maturity of the transaction, a DDP shall allocate additional eligible securities for the said transaction or settle part of the transaction in cash, prior to the closure of the LankaSettle System on the relevant day, to the extent required to ensure that the total market value of eligible securities adequately covers the said maturity value of the repurchase transaction.Page 4 of 11


MONETARY BOARDCENTRAL BANK OF SRI LANKAREGISTERED STOCK AND SECURITIES ORDINANCE AND LOCAL TREASURY BILLS20 December 2019 ORDINANCE DIRECTIONSNo. 01 of 20194.8 In the event of the market value of securities falling below the resale value of the securities (maturity value of the reverse repurchase transaction), at any time prior to the maturity of the transaction, a DDP shall obtain additional eligible securities for the said transaction or obtain cash for partial settlement of the transaction, prior to the closure of the LankaSettle System on the relevant day, to the extent required to ensure that the total market value of eligible securities adequately covers the said maturity value of the reverse repurchase transaction.5. Sale,5.1 A DDP shall not sell on outright basis, the eligible securities receivedSubstitutionfor reverse repurchase transactions.and Maturity of Eligible Securities5.2 A DDP may use the securities received for reverse repurchase transactions for repurchase transactions only if such use is explicitly provided for in the Repurchase or Reverse Repurchase Agreement entered into with the counterparty and if so provided for, in accordance with conditions included in the Repurchase or Reverse Repurchase Agreement.5.3 A DDP may sell, either on outright or repurchase basis, the securities used for a repurchase transaction only if such trading is explicitly provided for in the Repurchase or Reverse Repurchase Agreement entered into with the counterparty and if so provided for, in accordance with conditions included in the Repurchase or Reverse Repurchase Agreement.5.4 If a DDP decides to sell the securities used for a repurchase transaction in terms of the provisions of Direction 5.3 above or transfer the securities used for a repurchase transaction out of the securities account of the counterparty held at the Central Depositary System (CDS), thePage 5 of 11


MONETARY BOARDCENTRAL BANK OF SRI LANKA20 December 2019REGISTERED STOCK AND SECURITIES ORDINANCE AND LOCAL TREASURY BILLSORDINANCE DIRECTIONS No- 01 of 2019DDP shall ensure that the securities being sold or transferred out are substituted in the securities account of the counterparty held at the CDS, by other eligible securities to the extent required by Directions 4.4 or 4.6, depending on which is applicable to the relevant transaction, prior to or simultaneously with the removal of the securities from the securities account of the counterparty held at the CDS.5.5 Where a counterparty of a DDP intends to sell the securities used for a reverse repurchase transaction or transfer the securities used for a reverse repurchase transaction out of the securities account of the counterparty held at the CDS, the DDP shall obtain other eligible securities to the extent required by Directions 4.5 or 4.6, depending on which is applicable to the relevant transaction, in substitution of the securities being sold or transferred out of the securities account of the counterparty held at the CDS, prior to or simultaneously with the removal of the securities from the securities account of the counterparty held at the CDS.5.6 Where the eligible securities used for a repurchase transaction or securities received for a reverse repurchase transaction matures during the tenor of the transaction, the DDP shall allocate or obtain, as the case may be, eligible securities with a market value equivalent to or exceeding the market value of the maturing eligible securities, in substitution of the maturing eligible securities.
Page 6 of 11


MONETARY BOARDCENTRAL BANK OF SRI LANKA20 December 20196. Responsibilities of the DDP, Board of Directors, Risk Management, Compliance and Internal AuditREGISTERED STOCK AND SECURITIES ORDINANCE AND LOCAL TREASURY BILLS ORDINANCE DIRECTIONSNo. 01 of 20196.1 In entering into repurchase and reverse repurchase transactions, a DDP shall manage all relevant risks including counterparty credit risk, market risk, operational risk, liquidity risk and legal risk associated with such transactions.6.2 In entering into repurchase and reverse repurchase transactions, the DDP shall ensure that relevant requirements stipulated in all applicable Laws, Regulations, Directions, Codes of Conduct, LankaSettle System Rules and other guidelines are strictly adhered to.6.3 The Board of Directors of a DDP shall ensure DDP’s compliance with these Directions and formulate policies, procedures and guidelines covering repurchase and reverse repurchase transactions and establish an effective risk management framework and internal controls on repurchase and reverse repurchase transactions including the preparation of periodic reconciliations of securities, in order to ensure such compliance.6.4 The Compliance Officer or any other officer heading the compliance function of a DDP shall conduct independent verifications to ascertain the DDP’s compliance with these Directions and report the findings of such verifications to the Board of Directors or to a relevant sub-committee of the Board of Directors on a regular basis, at least quarterly.6.5 The DDP shall assess the adequacy of internal controls on repurchase and reverse repurchase transactions by conducting internal audits at least bi-annually and by obtaining a certification from the external auditor on a regular basis, at least annually.Page 7 of 11


MONETARY BOARDCENTRAL BANK OF SRI LANKA20 December 20197. Disclosure and Reporting Requirements
8. Penalties for Non- compliance with DirectionsREGISTERED STOCK AND SECURITIES ORDINANCE AND LOCAL TREASURY BILLSORDINANCE DIRECTIONS  No. 01 of 20197.1 A DDP shall disclose in its annual audited financial statements;(i) the carrying value of securities allocated for repurchase transactions as at the period end date(ii) the market value of securities received for reverse repurchase transactions as at the period end date(iii) DDP’s policy on haircuts for repurchase and reverse repurchase transactions(iv) any penalties imposed on the DDP under Direction 8 below7.2 DDPs which are Licensed Banks shall report to the DBS, the details of the repurchase and reverse repurchase transactions in such format and at such intervals as may be required by the DBS.7.3 DDPs which are Primary Dealer Companies shall report to the DSNBFI, the details of the repurchase and reverse repurchase transactions in such format and at such intervals as may be required by the DSNBFI.8.1 Where a DDP fails to allocate or obtain sufficient eligible securities as required by Directions 4.4, 4.5, 4.7, 4.8 and 5.5 above or as agreed with a Direct Participant in terms of Direction 4.6 above, DBS, in case of DDPs which are Licensed Banks, and DSNBFI, in case of DDPs which are Primary Dealer Companies, may impose on such DDP, a penalty of 2.0 per cent (2.0%) of the difference between the market value of allocated or obtained eligible securities and the market value of eligible securities required to be allocated or obtained with respect to the relevant repurchase or reverse repurchase transaction, per day.8.2 Where a DDP uses the securities received for reverse repurchase transactions in violation of the provisions of Directions 5.1 and 5.2Page 8 of 11


MONETARY BOARDCENTRAL BANK OF SRI LANKA20 December 2019REGISTERED STOCK AND SECURITIES ORDINANCE AND LOCAL TREASURY BILLS ORDINANCE DIRECTIONSNo. 01 of 2019above or sells the securities used for a repurchase transaction or transfers the securities used for a repurchase transaction out of the securities account of the counterparty held at the CDS in violation of the provisions of Directions 5.3 and 5.4 above, DBS in case of DDPs which are Licensed Banks and DSNBFI in case of DDPs which are Primary Dealer Companies, may impose on such DDP, a penalty of 2.0 per cent (2.0%) of the face value of the securities so misused, per day.8.3 Where a DDP is unable to comply with any provision of these Directions due to reasons beyond the control of the DDP, such DDP shall inform of such circumstances to the DBS or DSNBFI, as the case may be, not later than 4.00 p.m. on the following working day, and if such reasons are acceptable to the relevant Director, penalties in terms of Directions 8.1 and 8.2 above shall not be imposed on such DDP.
with these Directions, before 31.03.2020.9. Effective Date, Transitional9.1 These Directions shall be effective from 01.01.2020 subject to the transitional provisions in Directions 9.2 and 9.3 below.Provisions and9.2 Where the templates of the Repurchase or Reverse RepurchaseRescinding ofPreviousAgreement or any other documentation used by a DDP contains any clause which is in contradiction to any Direction herein, the DDP shallDirectionsmake necessary amendments to such template to ensure compliance9.3 Where the existing Repurchase or Reverse Repurchase Agreements entered into with any of the counterparties of a DDP contains any clause which is in contradiction with any Direction herein, the DDP shall enter into a new Repurchase or Reverse Repurchase Agreement or make necessary amendments to the existing Repurchase or ReversePage 9 of 11


MONETARY BOARDCENTRAL BANK OF SRI LANKAREGISTERED STOCK AND SECURITIES ORDINANCE AND LOCAL TREASURY BILLS ORDINANCE DIRECTIONS No. 01 of 2019Repurchase Agreement with such counterparties, to ensure compliance with these Directions, before 30.06.2020.9.4 Direction on Repurchase or Reverse Repurchase Agreements dated 02.05.2002 and Direction on Accounting for Repo Transactions dated 19.12.2003, both issued by the Superintendent of Public Debt, are hereby rescinded.10. Definitions 10.1 For the purposes of these Directions;(i) a repurchase transaction shall mean a transaction where a DDP sells an eligible security with an agreement to purchase it on an agreed date at an agreed price.(ii) a reverse repurchase transaction shall mean a transaction where a DDP purchases an eligible security with an agreement to sell it on an agreed date at an agreed price.(iii) haircut shall mean the discount applied on the market value of a security.(iv) direct participant shall mean a person appointed as a direct participant in terms of the Registered Stock and Securities Ordinance (Chapter 420) and Local Treasury Bills Ordinance (Chapter 417).(v) dealer direct participant shall mean a person appointed as a dealer direct participant in terms of the Registered Stock and Securities Ordinance (Chapter 420) and Local Treasury Bills Ordinance (Chapter 417).(vi) counterparty shall mean the person or entity with whom a DDP enters into a repurchase or a reverse repurchase transaction.Page 10 of 11


MONETARY BOARDCENTRAL BANK OF SRI LANKA20 December 2019REGISTERED STOCK AND SECURITIESORDINANCE AND LOCAL TREASURY BILLS ORDINANCE DIRECTIONS No. 01 of 2019(vii) dirty price shall mean the price of the eligible security inclusive of interest that has accrued on the relevant security from the date of last coupon payment, to the relevant date.(viii) carrying value shall mean the value at which the eligible security is reported in the annual audited financial statements.Dr. Indrajit CoomaraswamyChairman of the Monetary Board and Governor of the Central Bank of Sri Lanka
Page 11 of 11


MONETARY BOARDCENTRAL BANK OF SRI LANKANovember 2020 BANKING ACT DETERMINATION No. 01 of 2020ANNUAL LICENCE FEE OFLICENSED COMMERCIAL BANKS AND LICENSED SPECIALISED BANKSDetermination made by the Monetary Board of the Central Bank of Sri Lanka underSections 8 and 76D (6) of the Banking Act, No. 30 of 1988, as amended.The Monetary Board of the Central Bank of Sri Lanka (CBSL), considering the possible adverse impact on licensed banks due to the COVID-19 outbreak and in line with the extraordinary regulatory measures introduced by CBSL, has determined to maintain licence fee structure applicable for years 2019 and 2020 unchanged for the year 2021.Accordingly, in terms of Sections 8(1) and 76D (6) of the Banking Act No. 30 of 1988, every licensed commercial bank and licensed specialised bank shall pay the licence fee in respect of the calendar year 2021 to the Central Bank of Sri Lanka on or before 31 January 2021, based on the total assets of such bank as at the end of 2020, as set out in the Table below.Annual licence fee for the year 2021Total Assets as at the end 2020 (Rs. Bn)Licence Fee (Rs. Mn)Above 100033Above 750 to 100032Above 500 to 75026Above 200 to 50023Above 125 to 20017Above 75 to 12511.625 to 756Less than 253Prof/W D LakshmanChairman of the Monetary Board and Governor of the Central Bank of Sri Lanka


30 September 2020MONETARY BOARI)
CENTRAL BANK OF SRI LANKA
BANKING ACT DIRECTIONS No. 10 of 2020
AMENDMENTS TO BANKING ACT DIRECTIONS ON FINANCIAL DERIVATIVE
TRANSACTIONS FOR LICENSED COMMERCIAL BANKS AND LICENSED
SPECIALISED BANKS
In the exercise of the powers conferred by Sections a6(1) and 76J(1) of the Banking Act No. 30 of
1988, as amended, the Monetary Board, having considered the necessity to encourage foreign
inflows to the country, hereby issues the following Directions amending the Banking Act
Directions No. 4 of 2018 dated 21.08.2018 on Financial Derivative Transactions for Licensed
Commercial Banks and Licensed Specialised Banks.
Accordingly, Directions 5.1 b) and 5.7 c) are replaced, and Direction 5.11 is inserted immediately
after Direction 5.10 as follows:
5. General
Terms and
Conditions5.1
5.7b) Non Market Maker (NMM) Deals: Transactions executed by EBs
with their customers, i.e., any party other than an EB or with another
EB with the intention of making a spread. In these transactions an EB
shall not take any market risk into its own books and shall cover the
transaction on the same day on a back-to-back basis with another EB
in Sri Lanka or with a foreign counterparty or Central Bank of Sri
Lanka.
c) a marked-to-market gain (financial gain) should not be paid to the
customer. However, EBs may pay the marked-to-market gain arising
from unwinding/selling back of derivatives for which the underlying
transaction is an investment in Government Securities, by foreign
investors;
In the case of Inward Investments SWAPs entered into by licensed
commercial banks in terms of Operating Instructions No.
331041012100111002 dated 23.09.2020 and any subsequent
instructions, issued by the Central Bank of Sri Lanka, Directions 5.7
shall not be applicable.
ffirbbv*-^,
Chairman of the Monetary Board and
Governor of the Central Bank of Sri Lanka5.11


CENTRAL BANK OF SRI LANKA BANK SUPERVISION DEPARTMENT11 December 2020 BANKING ACT DIRECTIONS No. 11 of 2020INVESTMENTS IN SRI LANKA INTERNATIONAL SOVEREIGN BONDS BY LICENSED COMMERCIAL BANKS AND NATIONAL SAVINGS BANKIssued in terms of the powers conferred by Sections 46(1) and 76(J)(1) of the Banking Act No. 30 of 1988, as amended.The Central Bank of Sri Lanka, with a view to easing the pressure on the exchange rate and the stress on financial markets due to the impact of the Covid-19 outbreak, requires the licensed commercial banks and National Savings Bank to suspend the purchase of Sri Lanka International Sovereign Bonds (ISBs) for a period of six months unless such purchase of ISBs is funded by new foreign currency inflows to such licensed banks sourced from abroad.This Direction shall be implemented with immediate effect.Prof. W D LakshmanChairman of the Monetary Board and Governor of the Central Bank of Sri Lanka


23 December2020MONETARY BOARI)
CENTRAL BANK OF SRI LANKA
BANKING ACT DIRECTIONS No. 12 of 2020
INVESTMENTS IN SRI LANKA INTERNATIONAL SOVEREIGN BONDS BY
LICENSED COMMERCIAL BANKS AND NATIONAL SAVINGS BANK
Issued in terms of the powers conferred by Sections 46(1) and 76(J)(1) of the Banking Act No.
30 of 1988, as amended.
The Central Bank of Sri Lanka observes that a sizable amount of investment in Sri Lanka
International Sovereign Bonds (ISBs) has been made by licensed banks thus far during the year.
Furthermore, it has been observed that licensed banks continue to purchase Sri Lanka ISBs using
inflows to the current account of the balance of payments, thereby adding undue pressure to the
domestic foreign exchange market.
In consideration of these developments, licensed commercial banks and National Savings Bank
are required to suspend the purchase of Sri Lanka ISBs with immediate effect for a period of
three months.
Accordingly, the Banking Act Directions No. ll of 2020 dated 11 December 2020 on the above
subject are hereby withdrawn.
This Direction shall be irirplemented with immediate effect.w
Prof. W D Lakshman
Chairman of the Monetary Board and
Governor of the Central Bank of Sri Lanka


31December2020MONETARYBOARI)
CENTRAL BAI\K OF'SRI LAI\KA
BANKING ACT DIRECTIONS No.13 of2020
AMEITDMENTS TO REGTILATORY FRAMEWORK ON VALUATION OF'
IMMOVABLE PROPERTIES OF LICENSED COMMERCIAL BANKS AI\D LICENSEI)
SPECIALISED BATIKS
In the exercise of the powers conferred by Sections a6(l) and 76(JXl) ofthe Banking Act, No. 30
of 1988, the Monetary Board hereby issues the following amendments to Banking Act Directions
No. 01 of 2014 on the Regulatory Framework on Valuation of Immovable Properties of Licensed
Commercial Banks and Licensed Specialised Banks, hereinafter referred to as licensed banks.
Accordingly, the following Directions of the Banking Act Directions No. 01 of 2014 on the
Regulatory Framework on Valuation of Immovable Property of licensed banks shall be replaced
as follows:
5. Eligibility 5.1. Every licensed bank shall ensure that:
Criteria forValuers a) eligibility criteria for valuers are set out as follows.
A. A member of the Institute of valuers of sri Lanka (IvsL)
who shall be:
i. A Fellowmember; or
ii. A Professional Associate member with 5 years of
experience in such grade ofmembership.
For the pqpose of determining number of years of
experience in the grade of professional Associate
Membership, the transitional provisions stated in the
Section 24 of the IVSL (Amendment) Act, No. 9 of 2019,
shall be applicable.
B. A chartered valuation surveyor of the Royal Institution of
chartered surveyors (Rrcs) of the united Kingdom who
shall be:
i. A Fellowmember; or
ii. other members with at least 5 years of experience in such
grade of membership.
)


31December2020MONETARYBOARI)
CENTRAL BANK OF SRI LANKA
BAI\IKING ACT DIRECTIONS No. 13 of 2020
b)valuers selected for the panel of valuers of the licensed banks as per
the qualifications set out in Direction 5.1 a) above shall acquire
continuous Professional Development as approved/recommended
by the respective professional body;
intemal valuation of immovable property is undertaken by valuers
who satisft the eligibility criteria set out in Direction 5.1 a) above;
and
valuers who maintain highest levels of professional conduct, ethics
and integrity in carrying out valuations of immovable property of
licensed banks are included in the panel of valuers.
In respect of immovable property obtained/to be obtained as collaterals
against all performing loans and advances, banks shall establish an
appropriate threshold for intemal and external valuation uN per the bank's
policy.
In respect of non-performing loans, where the capital outstanding amount
is less than Rs. 10,000,000 or 0.1%o of the bank's capital base, whichever
is less, an intemal valuation report may be obtained.
Licensed banks shall obtain an external valuation report in the case of
obtaining valuation for a foreclosed properly where the capital
outstanding amount is over Rs. 5,000,000 or 0.1% of the bank's capital
base, whichever is less.
7.1 rhe frequency of valuation as referred to in Direction2.2 (f) of the
cited Direction shall be as follows:
a) valuation of immovable property obtained as collateral against
loans and advances which are non-performing shall be made at
the frequency as follows for any regulatory pu{pose.
i. In respect of credit facilities granted against residential
property which is occupied by the borrower for residentialc)
d)
6. Threshold
for internal
and
extemal
valuation
reports
7. X'requency
of
Valuation6.1
6.2
6.3
)


ffi
MONETARYBO
3l December202OARI)
CENTRAL BAI\K OF SRI LAIIKA
BA}IKING ACT DIRECTIONS No.13 of2020
pulposes: a report that is not more than five years old.
ii. All other credit facilities: a report that is not more than four
years old.
Revaluation of immovable properly as qeferred to in Directions
3.1 b) and c) of the cited Direction on Valuation of Immovable
Properties shall be made in line with the intemal policies
approved by Board of Directors or depending on any significant
and volatile changes in fair value of such immovable property
are experienced. However, such gains can only be included in
Tier 2 capital once in three years.
Valuation of immovable property obtained as collateral against
loans and advances which are performing, shall be made at the
time of initial granting and at the time of any subsequent
enhancement of credit facilities.
Banking Act Directions No. 07 of 2019 on Amendments to Regulatory
Framework on valuation of Immovable Properties of Licensed Commercial
Banks and Licensed Specialised Banks are hereby revoked.
Chairman ofthe Monetary Board and
Governor of the Central Bank of Sri Lankab)
c)
9.Revocation
of
Directions
)


ffi September 2020MONETARYBOARI)
CENTRAL BANK OF SRI LANKA
BANKINGACT DIRECTIONS No. 08 of 2020
AMENDMENT TO TIIE BANKING ACT DIRECTIONS ON
OWNERSHIP OF ISSUED CAPITAL CARRYING VOTING RIGHTS FOR
LICENSED COMMERCIAL BANKS
In the exercise of the powers conferred by Section a6(l) of the Banking Act No. 30 of 1988, as
amended, the Monetary Board, having considered the benefits to the banking system through the
investments by Multilateral Financial Organisations in the shareholding of licensed commercial banks
hereby issues the following Direction amending the Banking Act Directions No.l of 2007 dated 19
January 2007.
Direction 4 of the Banking Act Directions No. I of 2007 is replaced as follows:
\-
4. Maximum percentage
of ownership of
sharesAccordingly, the Monetary Board, subject to Sections 12(18), l2(1C)
and 13 and subject to terms and conditions it may deem fit, may grant
permission on a case-by-case basis to:
(a) any of the categories of shareholders referred to in Sections
Lz(lC) and 46(1Xd) to acqutre a material interest not exceeding
15 per cent of the issued capltal carrying voting rights in a
licensed commercial bank,
(b) Multilateral Financial Organisations such as the World Bank,
International Finance Corporation (IFC), Asian Development
Bank (ADB) and any other Multil ateruI Financial Organisation
as approved by the Monetary Board of the Central Bank of Sri
Lanka, notwithstanding (a) above, to acquire a material interest
not exceeding 20 per cent of the issued capital canylng voting
rights in a licensed commercial bank subject to the condition that
the material interest so acquired shall be reduced to 15 per cent
within a period of 10 years from the date of stipulation.
Chairman of the Monetary Board and
Governor of the Central Bank of Sri LankaProf W D Lakshman


ffi
.,*'ffJ*'Iffi",I:fl,o**
$K September 2020 BANKING ACT DIRECTIONS No. 09 of 2020
AMENDMENT TO THE BANKING ACT DIRECTIONS ON
OWNERSHIP OF ISSUED CAPITAL CARRYING VOTING RIGIITS FOR
LICENSED SPECIALISED BANKS
In the exercise of the powers conferred by Section 761(l) of the Banking Act No. 30 of 1988, as
amended, the Monetary Board, having considered the benefits to the banking system through the
investments by Multilateral Financial Organisations in the shareholding of licensed specialised banks
hereby issues the following Direction amending the Banking Act Directions No. 2 of 2007 dated 19
Jantary 2007.
The following new Direction will be
Directions No. 2 of 2007 .
3. Maximum percentage
of ownership of sharesinserted immediately after Dirrgction 3(2) of the Banking Act
(3) Notwithstanding (1) above, the Monetary Board, subject to
terms and conditions it may deem fit, may grant permission
on a case-by-case basis to acquire a material interest not
exceeding 20 per cent of the issued capttal carrying voting
rights in a licensed specialised bank by Multil ateralFinancial
Organisations such as the World Bank, International Finance
Corporation (IFC), Asian Development Bank (ADB) and any
other Multilateral Financial Organisation as approved by the
Monetary Board of the Central Bank of Sri Lanka subject to
the condition that the material interest so acquired shall be
reduced to 15 per cent within a period of 10 years from the
date of stipulation.
Chairman of the Monetary Board and
Governor of the Central Eiank of Sri LankaProf. W D Lakshman


Draft

CENTRAL BANK OF SRI LANKA
BANK SUPERVISION DEPARTMENT
   13 January 2020  CIRCULAR           No. 01 of 20 20
1

CREDIT SUPPORT TO ACCELERATE ECONOMIC GROWTH

With a view to accelerating economic growth in the country and  based on discussions held
with the Hon. Prime Minister and the Minister of Finance, officials of the Office of the
President, Office of the Pri me Minister and Ministry of Finance, the licensed commercial
banks and licensed specialised banks  (hereinafter referred to as licensed banks ), have agreed to
provide a special credit support scheme to eligible Small and Medium Enterprise borrowers of
respe ctive licensed banks during 01.01.2020 to 31.12. 2020 to complement the fiscal incentives
already announced by the Government.

Based on the discussions the Central Bank of Sri Lanka (CBSL) had with the licensed banks, it
is observed that the proposed scheme may not cause an undue level of stress or threaten the
stability of the banking system. Accordingly, this Circular sets out the guidelines for giving
effect to the Scheme in a consistent manner across licensed banks .

1. General Terms and Conditions
(i) Eligible Participants : Small and Medium Enterprises (SMEs)  engaged in
business sectors specified in para (ii) below that have obtained credit facilities
from licensed  banks. For  the purpose of this scheme, SMEs shall mean
borrowers with an annual turnover b etween Rs. 16 m n to Rs. 750 mn  for the
year ended 31.12.2019 .
(ii) The supported business sectors shall be manufacturing, services, agriculture
(including processing) and construction.  For the avoidance of doubt, import
facilities for imports other than import ation of machinery and equipment are
excluded from the scheme. Facilities for importation of vehicles shall not be
permitted.
(iii) Credit facilities to be supported under this scheme shall be business related term


(iii) Credit facilities to be supported under this scheme shall be business related term
loans, leasing facilities, overdrafts and trad e finance facilities denominated in
Rupee s subject to the requirements specified below .


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CENTRAL BANK OF SRI LANKA
BANK SUPERVISION DEPARTMENT
   13 January 2020  CIRCULAR           No. 01 of 20 20
2

(iv) Licensed banks shall offer the credit support scheme to all eligible borrowers
upon a written request being made by such borrowers on or before 31.01.2020
and operatio nalise the scheme by 31.03.2020 .
(v) During the period of the credit support scheme, borrowers shall be required to
continue to service the interest due on credit facilities considered under this
scheme in a timely manner in accordance with the conditions app licable to this
scheme .
(vi) Borrowers who fail to service interest as required in para (v) above will not be
entitled to enjoy the benefits of this scheme  and will be considered as non -
participants of this scheme.
(vii) The operational details of the Scheme are as s et out in sections 2 to 6 of this
Circular .
2. Performing Loans
(i) Eligible borrowers with aggregate outstanding fund based exposure of  up to Rs.
300 mn as at 31.12.2019 with a licensed bank may avail of the concessions
under this scheme from such licensed bank.
(ii) Upon a written request being made by a borrower  on or before 31.01.2020 ,
licensed banks shall offer a capital moratorium  during 01.01.2020 to 31.12.2020
in respect of all eligible Rupee  term loans.
(iii) Licensed banks shall extend the  existing tenure of loans  eligible  for capital
moratorium by  the moratorium period without increasing the value of
instalments .
(iv) During the period of deferment, the interest shall be charged on the contracted
basis without any penal component.
(v) Permanent overdraft facilities fallin g due for settlement or maturing or are
reviewed during the period up to 31.03.2020, shall be extended up to


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CENTRAL BANK OF SRI LANKA
BANK SUPERVISION DEPARTMENT
   13 January 2020  CIRCULAR           No. 01 of 20 20
3

30.06.2020.
(vi) Eligible trade finance facilities falling due for settlement or maturing or are
under review during the period up to 31.03.2020, shall  be extended by 30 days .
(vii) Licensed  banks may grant a n additional  loan or  a new loan facility not
exceeding Rs . 300 mn per bank  per borrower  provided that the borrower
submits a credible business plan subject to the following condition s:
(a) The loan facility shall be repaid over five years at an interest rate equal to
AWPLR to expand business activities.
(b) A maximum grace period of one year may be considered  for such loans .
(c) Licensed banks may obtain suitable collateral to mitigate the risk relating
to any  additional credit facilities granted under this scheme.
(viii) Concessions already granted under different relief schemes and which are due to
expire before 31.12.2020, will be extended up to 31.12.2020. However, such
borrowers shall be required to comply with t he requirements of this scheme .
(ix) Licensed  banks may consider inclusion of borrowers whose total borrowings
exceed Rs. 300 mn , on case -by-case basis, upon a written  request from  such
borrower.
3. Non-Performing Loans  (NPLs)
(i) Eligible SME s which  are in the NPL  category as at 31.12.2019 , including those
where the banks have commenced or given notice of recovery action under the
provisions of the Recovery of Loans by Banks (Special Provisions) Act, No. 4
of 1990 , will be eligible to avail of the concessions set o ut below upon a written
request from such borrowers  on or before 31.01.2020 .
(ii) The total penal  component of  interest accrued and unpaid on NPL loans and
advances referred above shall be waived  by licensed  banks  at their cost .


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CENTRAL BANK OF SRI LANKA
BANK SUPERVISION DEPARTMENT
   13 January 2020  CIRCULAR           No. 01 of 20 20
4

(iii) Rescheduling of loans  and advances  shall be as follows:
(a) Where the borrower has repaid 50% or more of the initial capital, 50% of
the accumulated  and unpaid  interest (after waiver of penal interest referred
to above) of the defaulted instalments up to the date of consideration  by
the licensed bank under this scheme , shall be deferred  and the balance
capital and interest shall be rescheduled . The deferred interest shall be
waived by the licensed banks , after the borrower settles the rescheduled
loan in the manner provided in para (c) and (d) below .
(b) Where the borrower has repaid less than 50% of the initial capital, 25% of
the accumulated and unpaid interest (after waiver of penal interest referred
to above) of the defaulted instalments up to the date of consideration by
the licensed bank under this scheme, shall be deferred and the balance
capital and interest shall be rescheduled. The deferred interest shall be
waived by the licensed banks, after the borrower settles the rescheduled
loan in the manner provided in para (c) and (d) bel ow.
(c) The rescheduled loan referred in para (a) and (b) above shall be repaid
over a period not exceeding twice the remaining number of instalments of
the original loan.
(d) A one -year grace period shall be granted for capital repayment of loans
referred in para (c) above.  However, borrowers will be required  to service
interest in a timely manner .
(iv) Licensed banks shall subject to para (d) below , grant a new working capital loan
(or temporary progressively reducing overdraft facility) for SMEs which are in
the NPL  category as follows, to revive businesses:
(a) Maximum amount to be three months working capital requirement with a
maximum tenure of six months .
(b) A three -month moratorium shall be granted for the repayment  of capital of


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CENTRAL BANK OF SRI LANKA
BANK SUPERVISION DEPARTMENT
   13 January 2020  CIRCULAR           No. 01 of 20 20
5

such loan or overdraft , provided howeve r that i nterest shall be serviced  in
a timely manner .
(c) Interest rate for this loan shall not be more than 2% plus the prevailing
Standing Lending Facility Rate .
(d) The new working capital loan  is included in a credit guarantee scheme
administered by CBS L as mentioned in para 5 below .
(v) Licensed  banks shall  defer passing new resolutions under the Recovery of Loans
by Banks (Special Provisions) Act, No. 4 of 1990 for recovery of loans and
advances until 31.12.2020 in respect of borrowers participat ing in th is scheme .
In instances where resolutions  for recovery have already been passed,
auction ing of assets  will be deferred  until 31.12.2020  in respect of such
borrowers  who are participants in the Scheme and meet the requirements of the
Scheme . Failure to adhe re to the requirements will result in the banks treating
such borrowers as non-participants  of this scheme.
(vi) In instances where there are on-going litigation s in courts relating to recovery,
borrowers will be permitted to participate in the Scheme upon ente ring into an
agreement in Court with regard to the requirements set out in this scheme .
(vii) Licensed  banks shall suspend legal action against non-performing borrowers
who have been accepted under this scheme .
4. Repayment of Capital by Banks unde r Refinance Sc hemes
(i) The Government has indicated its willingness to defer capital repayments on
refinance loans granted to licensed banks falling due from 01.01.2020 until
31.12.2020 and extend the final repayment date by 12 months. However, banks
are required to seek s uch extension if required and  enter into  supplementary
agreements with the relevant Government agency in this regard.