Directions, Determinations, and Circulars issued to Licensed Commercial Banks  317
Ref. No. : 02  / 17 / 600 / 0009  / 001
Bank Supervision Department
12 September, 2008
To :  The CEOs of all Licesed Commer cial Banks
 This is to inform you that the Monetary Board of the Central Bank of Sri Lanka, with the approval of
the Minister of Finance and Planning, has specified the New Zealand Dollar as a designated currency for
foreign exchange transactions in both Domestic Banking Units and Off-shore Banking Units of Licensed
Commercial Banks.
 Accordingly , the Banking (Off-Shore Banking Scheme) Order 2000 dated 7th April, 2000, made
under sections 23, 25 and 26 of the Banking Act, No. 30 of 1988, is hereby amended to include the New
Zealand Dollar as a designated currency for off-shore banking business carried out by licensed commercial
banks, and to remove the Deutsche Mark, the French Franc and the Netherlands Guilder from the Schedule
of Designated Foreign Currencies.
 The Banking Act, Order No. 1 of 2008 which contains the amended Schedule of Designated Foreign
Currencies, is attached.
Yours faithfully,
B D W A Silva
Director of Bank Supervision


318 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Order made by the Monetary Board of the Central Bank of Sri Lanka with the approval of the
Minister made under Section 23, 25 and 26 of the Banking Act No. 30 of 1988, as amended.
Sgd. Nivard Ajith Leslie Cabraal
Chairman of the Monetary Board /
Governor of the Central Bank of Sri Lanka
Colombo
12 September 2008.
BANKING ACT, ORDER NO. 1 OF 2008
Banking (Off-Shore Banking Business Scheme) Order
Citation.  This order may be cited as the Banking Act Order No. 1 of 2008.  The Sections
referred to in this order will be those of the Banking Act No. 30 of 1988, as
amended.
1. The following foreign currencies set out in the Schedule to this Order are
determined as the Designated Foreign Currencies under the Banking (Off-Shore
Banking Business Scheme) Order.
2. The Schedule referred to in this Order, replaces the Schedule in the Banking
(Off-Shore Banking Business Scheme) Order 2000, dated 7th April 2000.
schedule
Designated Foreign Currencies
 (i) Australian Dollar
 (ii) Canadian Dollar
 (iii) Danish Kroner
 (iv) Euro
 (v) Hong Kong Dollar
 (vi) Japanese Yen
 (vii) New Zealand Dollar
 (viii)  Norwegian Kroner
 (ix) Pound Sterling
 (x) Singapore Dollar
 (xi) Swedish Kroner
 (xii) Swiss Franc
 (xiii)  United States Dollar
 Designated
Foreign
Currencies.


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  319
Ref. No. : 02  / 17 / 800 / 009 / 001
Bank Supervision Department
23 October 2009
To :  CEOs of all  Licensed Commer cial Banks
Dear Sir  / Madam,
PERMITTING TRANSFER OF FUNDS BETWEEN ACCOUNTS MAINTAINED AT
THE DOMESTIC BANKING UNITS AND THE OFF-SHORE UNITS OF
LICENSED COMMERCIAL BANKS
With a view to further deepening and diversifying the government securities market, the Monetary
Board has authorised the transfer of funds between Treasury Bill/Bond Investment External Rupee
Accounts (TIERA), Share Investment External Rupee Accounts (SIERA) and Special Foreign Investment
Deposit Accounts (SFIDA) maintained in the Domestic Banking Units and the accounts maintained in
Off-Shore Units of licensed commercial banks.
Accordingly, the Banking (Off-Shore Banking Scheme) Order 2000 dated 7 April 2000, made
under sections 23, 25 and 26 of the Banking Act, No. 30 of 1988, is amended to facilitate such transfers
between the said accounts maintained in the Domestic Banking Units and Off-Shore Units of licensed
commercial banks.
The Banking Order, No. 1 of 2009 incorporating the above mentioned amendment, is attached.
Yours faithfully,
(Mrs.) T M J Y P Fernando
Actg.  Director of Bank Supervision


320 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Order made by the Monetary Board of the Central Bank of Sri Lanka with the approval of the
Minister, under sections 23, 25 and 26 of the Banking Act, No. 30 of 1988, as amended.
Nivard Ajith Leslie Cabraal
Chairman of the Monetary Board and
Governor of the Central Bank of Sri Lanka
Colombo
23 October 2009.
BANKING ACT, ORDER NO.1 OF 2009
BANKING (OFF-SHORE BANKING BUSINESS SCHEME) ORDER
1. This Order may be cited as the Banking Act, Order No.1 of 2009. The Sections
referred to in this Order will be those of the Banking Act, No.30 of 1988, as
amended.
2. The following new clause is hereby inserted immediatl y after Clause 5 and shall
have effect as Clause 5 A of the Banking (Off-Shore Banking Business Scheme)
Order, 2000 dated on 7 April 2000 :–
 5A. A ny transfer of funds between Treasury Bill / Bond
Investment External Rupee Accounts, Share Invest-
ment External Rupee Accounts and Special Foreign
Investment Deposit Accounts of a non-resident, and
accounts maintained in Off-Shore Units in Sri Lanka by
such non-resident shall be permitted.Citation.
Insertion of new
Clause 5 A in the
Banking
(Off-shore Banking
Business) Order,
2000 issued on
7 April 2000. Permitted
transactions with
the Domestic
Banking Unit.


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  321
Banking Act, No. 30 of 1988 as Last Amended by
Banking (Amendment) Act, No.33 of 1995
Banking (Off-shore Banking Scheme) Order, 2000
Order relating to off-shore banking business carried on by licensed commercial banks, made
under sections 23, 25 and 26 of the Banking Act, by the Monetary Board, with the approval of the
Minister.
Sgd. A. S. Jayawardena
Governor
Central Bank of Sri Lanka
Colombo
7th April, 2000
BANKING (OFF-SHORE BANKING SCHEME) ORDER, 2000
1. This Order may be cited as the Banking (Of f-shore Banking
Scheme) Order, 2000.
2. (1) An of f-shore unit may, subject to this Order and to any other
written law, carry on all or any of the businesses specified in
paragraphs (a) to (e) of Section 25 of the Act.
 (2) In accepting any contingent liability under Section 25( c) of
the Act, an off-shore unit shall only engage in any or all of the
following transactions–
 (a) establish, open or advise letters of credit expressed in any
designated foreign currency;
 (b) issue or renew guarantees, indeminities or similar
undertakings expressed in any designated foreign
currency;
 (c) acceptances expressed in any designated foreign
currency.
3. Funds of an account maintained with an off-shore unit shall not be
withdrawable by cheque.
4. ( 1)  An of f-shore unit may, subject to this Order and any other
written law, engage in off-shore banking business specified in
paragraph 2 with any one or more of the following residents–
 (a) the Central Bank of Sri Lanka;
 (b) a licensed commercial bank;
 (c) subject to sub paragraph (3), a BOI enterprise;Citation.
Authorised Businesses.
Withdrawal of funds.
Authorised Business with
Residents.


322 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Assets and liabilities of an
off-shore unit.
Particulars of executive officers
and undertaking.
Books etc. off-shore units. (d) any other resident approved by the Monetary Board in the
interest of national economy, subject to such conditions as
the Monetary Board may impose.
 (2) W ithout prejudice to the rights conferred under this Order on a
resident specified in subparagraph (1), an off-shore unit may,
subject to any other written law, grant loans in any designated
foreign currency to any resident, being an exporter of goods
and services from Sri Lanka or to any resident, being a supplier
of accessories to such exporter as may be approved by the
Monetary Board and may discount export bills expressed in
any designated foreign currency for such an exporter.
 (3) An of f-shore unit shall not grant a loan in foreign currency to
a BOI enterprise unless the off-shore unit is satisfied that the
BOI enterprise has the capacity to repay the loan in foreign
currency.
5. An account maintained by a non-resident in an off-shore unit shall
only be credited with funds received on inward remittances in any
designated foreign currency.
6. The total assets and liabilities of an off-shore unit shall not exceed
such amount as may be determined by the Monetary Board.
7. A  licensed commercial bank shall–
 (a) prior to commencem ent of off-shore banking business, furnish
to the Director of Bank Supervision the names, qualifications
and banking experience of all executive officers of the
off-shore unit of the bank and notify forthwith any changes, if
any, in such particulars thereafter; and
 (b) in the case of a commercial bank incorporated outside Sri
Lanka, furnish the Director of Bank Supervision, if required
by the Monetary Board, a written undertaking from its Head
Office stating that such bank shall provide such funds in such


Office stating that such bank shall provide such funds in such
designated foreign currency as may be necessary to meet
all obligations and liabilities incurred in carrying on of its
off-shore banking business.
8. Books, other documents and records maintained by the of f-shore
unit of a licensed commercial bank shall be kept separate from
other books, documents and records maintained by the bank and the
off-shore unit shall, if so required by the Monetary Board, furnish
the Central Bank information from such books, documents and
records maintained by the off-shore unit.
9. In this Order–
“ BOI Enterpri se” means a company with which an agreement has
been entered into by the Board of Investment of Sri Lanka
under Section 17 of the Board of Investment of Sri Lanka, Law
No. 4 of 1978 and which has been granted approval to transact
business with any off-shore unit;Permitted deposits in an account
of a
non-resident.
Interpretation.


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  323
“ designated foreign currency” means the foreign currency set out in
the Schedule to this Order;
“ of f-shore unit” means an off-shore unit of a licensed commercial
bank carrying on off-shore banking business of the bank under
this Act and includes any unit which carried on off-shore
banking operations under the “Foreign Currency Banking
Scheme” established by the Monetary Board;
“ resident” and “non-resident” shall have the same meaning assigned
to them in Section 86 of the Banking Act, No. 30 of 1988.
schedule
Designated Foreign Currencies
 1. Australian Dollar
 2. Canadian Dollar
 3. Danish Kroner
 4. Deutsche Mark
 5. Euro
 6. French Franc
 7. Hongkong Dollar
 8. Japanese Yen
 9. Netherland Guilder
10. Norwegian Kroner
11. Pound Sterling
12. Singapore Dollar
13. Swedish Kroner
14. Swiss Franc
15. United States Dollar


324 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Operating Instructions
Ref. No. : EC  / 04 / 2000 (D)
Department of Exchange Control
Central Bank of Sri Lanka
61 Janadhipathi Mawatha
P.O. Box 883
Colombo 1.
7th April, 2000
To : All Licensed Commercial Banks
OFF-SHORE BANKING BUSINESS
1. Licensed commercial banks are hereby permitted to carry on, subject to these instructions,
off-shore banking business in accordance with the Banking (Off-shore Banking Scheme) Order 2000
issued under the Banking Act, No.30 of 1988 and amended by Banking (Amendment) Act, No.33 of
1995 (hereinafter referred to as the “Order”).
2. Any loan granted under paragraph 4(2) of the Order in any designated foreign currency by
an off-shore unit of a licensed commercial bank to a resident, being an exporter of goods and services
from Sri Lanka, other than a BOI Enterprise, or to a resident, not being a BOI Enterprise, who is a
supplier of accessories to such exporter, shall be in accordance with the instructions to Authorised
Dealers No. ECD/02/97 (C&F) and ECD/03/97 (C&F) dated 03.01.1997 and EC/02/98 (C&F) dated
31.07.1998* relating to foreign currency loans to direct and indirect exporters issued under the
Exchange Control Act and shall not exceed such limits as may be imposed by the Central Bank of Sri
Lanka and communicated to each licensed commercial bank by the Chief Accountant of the Central
Bank and any reference in  these operating instructions  to Foreign Currency Banking Units shall be a
reference to Off-Shore  Units.
3. (a) An accommodation extended to a resident under paragraph 4(1) of the Order, not being
an exporter or supplier of goods to such an exporter referred to in paragraph 2 of these
instructions, by an off-shore unit which is authorised to engage in off-shore banking
business with such resident under the Order, shall be extended  solely for the operations
of such resident in Sri Lanka and for no other purpose whatsoever.


of such resident in Sri Lanka and for no other purpose whatsoever.
 (b) An accommodation granted under sub-paragraph ( a) to a resident, being a licensed
commercial bank or any other resident approved by the Monetary Board under paragraph
4(1)(d) of the Order, shall not exceed such amount as may be determined by the Central
Bank.
4. W here under paragraph 2(2) of the Order or under paragraph 4 of that Order, an
off-shore unit is authorised –
 (a) to open, establish, or advise a Letter of Credit, such letter shall be opened, established or
advised on behalf of a non-resident or a resident specified in paragraph 4 of the Order;
 (b) to issue or renew a guarantee, indemnity or similar undertaking, such guarantee,
indemnity or undertaking shall be given on behalf of a non-resident or a resident specified
in paragraph 4 of the Order; and
* and EC/05/2000 of 7th April 2000 and ECD/F/D 1488 of 4th April 2000 [see chapter 15 of Foreign Exchange Manual]


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  325
 (c) to receive an acceptance, such acceptance shall be received for a non-resident or a
resident specified in paragraph 4 of the Order.
5. An of f-shore unit shall, if so required by the Central Bank, furnish to the Central Bank, such
statements or returns as may be deemed necessary in respect of any transactions carried on by such
off-shore unit under these instructions.
6. In these instructions, the expressions “BOI Enterprise”, “designated foreign currency”,
“off-shore unit”, “resident” and “non-resident" shall have the same meaning assigned to them in
paragraph 9 of the Order.
7. (a) Previous Operating Instructions and Circulars issued in relation to the Foreign Currency
Banking Scheme established by the Monetary Board and specified in the Schedule hereto
are hereby revoked.
 (b) All other Operating Instructions and Circulars in relation to the Foreign Currency
Banking Scheme established by the Monetary Board and not revoked by
sub-paragraph (a) shall continue in force and any reference in these instructions and
circulars to the Foreign Currency Banking Unit shall be read and construed as if it were a
reference to an Off-Shore  Unit.
 (c) The revocation ef fected by sub-paragraph ( a) shall not affect -
 (i) any of fence committed or any penalty or liability incurred under those instructions
and circulars prior to the revocation; and
 (ii) any action, proceeding or thing pending or incomplete on the date of  revocation,
but every such action, proceeding or thing may be carried on and completed as if
those instructions and circulars continue to be in force.

 M. B. Dissanayake   H. A. G. Hettiarachchi
 Chief Accountant  Controller of Exchange
Schedule
 (1) Circular No. 380 (FCBS 1/79) dated 02.05.1979.
 (2) Circular No. 381 (FCBS 2/79) dated 17.05.1979.
 (3) (FCBS 3/79) and Operating Instructions BC 29/79 dated 28.09.1979.


(3) (FCBS 3/79) and Operating Instructions BC 29/79 dated 28.09.1979.
 (4) (FCBS 4/79) dated 29.10.1979.
 (5) (FCBS 5/79) dated 02.1 1.1979.
 (6) (FCBS 6/79) – BC/F 1049/79 and Operating Instructions BD 40/79 dated 10.01.1980
 (7) (FCBS 7/80) – BC/F 1049/79 and Operating Instructions BD 18/80 dated 30.04.1980.
 (8) (FCBS 8/80) – BC/F 1049/79 and Operating Instructions BD 21/80 dated 14.05.1980.
 (9) (FCBS 9/84) – BC/F 1049/79 and Operating Instructions BD 23/84 dated 13.11.1984.
(10) (FCBS 10/89) – BC/F 1049/79 and Operating Instructions BD 01/89 dated 31.01.1989.
(11) Operating Instructions BD/15/93 dated 24.11.1993.


326 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Directions issued by the Monetary Board of the Central Bank of Sri Lanka under Section 46(1) of the
Banking Act, No. 30 of 1988, as amended.
Nivard Ajith Leslie Cabraal
Chairman of the Monetary Board and
Governor of the Central Bank of Sri Lanka
Colombo
02 September 2009.
BANKING ACT DIRECTIONS NO.5 OF 2009
IDENTIFYING, REPORTING, TRANSFERRING AND MAINTAINING
ABANDONED PROPERTY OF LICENSED COMMERCIAL BANKS
In the exercise of the powers conferred by Sections 72 to 76 of the Banking Act No. 30 of 1988, last
amended by the Banking (Amendment) Act No. 46 of 2006, the Monetary Board hereby issues these
Directions under provisions of Section 46(1) of the Act in respect of identifying, reporting, transferring
and maintaining abandoned property of licensed commercial banks.
1 These Directions may be cited as the Banking Act Directions No. 5 of 2009.
The Sections referred to in these Directions are those of the Banking Act
No. 30 of 1988, last amended by the Banking (Amendment) Act No. 46 of
2006.
2(1) In terms of Section 73(1), all licensed commercial banks holding any
articles defined as abandoned property in Section 72 of the Banking Act,
shall submit a report to the Monetary Board on an annual basis, within
six months from the end of each financial year. Licensed commercial banks
shall report abandoned property in accordance with the format at Annex I.
2(2) If there is no abandoned property identified by a licensed commercial bank
during a financial year, the respective licensed commercial bank shall formally
communicate this fact to the Central Bank of Sri Lanka. Such communication
will be considered as a ‘Nil’ report.
2(3) Pursuant to filing of the report on abandoned property, licensed commercial
banks shall maintain documents necessary to substantiate the information
submitted in the report for a period of at least ten years from the date of
submission.


submitted in the report for a period of at least ten years from the date of
submission.
3(1) In terms of Section 74 of the Banking Act, all licensed commercial banks shall,
within 30 days of submitting the report required under Direction 2(1) above,
  (i) publish a notice in Sinhala, Tamil and English daily news papers stating
the name of the owner and particulars concerning the property, and
 (ii) dispatch by registered post, a notice containing the particulars of such
property to the owner’s last known address.Citation.
Reporting of
abandoned
property to the
Monetary Board.
Publication of
the notice on
abandoned
property.


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  327
3(2) All licensed commercial banks shall confirm in writing to the Central Bank of
Sri Lanka of compliance with these requirements, within seven working days
from the date of publishing and despatching such notices.
4(1) All licens ed commercial banks shall create “control accounts” for abandoned
property, based on the currency, in the banks’ books and shall transfer to
control accounts all monies reported to the Monetary Board as abandoned
property in accordance with Direction 2(1) above.
4(2) All licensed commercial banks shall transfer monies that have already been
reported to the Monetary Board as abandoned property in accordance with the
Circular dated 2 May 2006, to the “control accounts” referred to in Direction
4(1) above, within seven working days from the date of this Direction.
5(1) In terms of Section 73(2) of the Banking Act, the Monetary Board has
determined that licensed commercial banks shall transfer ninety per cent of
the monies reported as abandoned property, maintained in Sri Lanka Rupees
(LKR) in a control account, to a special account in the Central Bank of Sri
Lanka, within forty five calendar days from the date of reporting the abandoned
property each year.
5(2) Licensed commercial banks shall transfer ninety per cent of monies that have
already been reported as abandoned property in accordance with the Circular
dated 2 May 2006, maintained in LKR, and the interest on such monies
calculated up to the date of transfer, to a special account in the Central Bank of
Sri  Lanka, within thirty calendar days from the date of this Direction.
5(3) Licensed commercial banks shall transfer the monies reported as abandoned
property referred to in Directions 5(1) and 5(2) above to the following account
in the Central Bank of Sri Lanka, and notify it in writing to the Chief Accountant
of the Central Bank with a copy to the Director of Bank Supervision.


of the Central Bank with a copy to the Director of Bank Supervision.
  Name of Account : Abandoned Property of Licensed Commercial Banks
  Account Number :   4679
6(1) T en per cent of the monies reported as abandoned property maintained in
LKR, remaining after the transfer as specified under the Direction 5(1), and
abandoned property maintained in foreign currency shall be retained in the
“control accounts” of licensed commercial banks referred to in Direction 4(1)
above. These monies shall be utilised to meet any claims on the abandoned
properties, upon the licensed commercial banks satisfying themselves of the
identity of the claimants.
6(2) Once a payment is made in terms of Direction 6(1) above, licensed commercial
banks shall report it to the Central Bank of Sri Lanka within seven days from
the date of such payment, along with relevant information, i.e., details of the
owner, description of property, date of reporting of such abandoned property,
amount of payment and date of payment. All licensed commercial banks shall
prepare a report of such repayments on an annual basis and submit the same
within six months of the end of each financial year, in accordance with the
reporting format at Annex II, along with the report referred to in Direction 2(1)
above.Transfer of
abandoned
property to “control
accounts”.
Transfer of monies
to a special
account in the
Central Bank.
Repayment
of claims.


328 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
6(3) Any claims in LKR made in excess of ten per cent of the funds retained in the
respective control account by the licensed commercial bank, will be repaid
by the Central Bank of Sri Lanka in terms of the provisions of Section 75 of
the Banking Act. When any such claim is made, licensed commercial banks
shall forward the same to the Central Bank of Sri Lanka, along with a letter
certifying the identity of the owner of such abandoned property.
7(1) Licensed commercial banks shall prepare a Safe Deposit Inventory Sheet to
record the details of safe deposit boxes opened. Opening of safe deposit boxes
shall be carried out in the presence of two responsible officers who are, inter-
alia, specifically assigned with such task and one of whom should be at least
at Senior Executive level. All items contained in safe deposit boxes that are
considered to be abandoned, shall be included in the Inventory Sheet without
exceptions. All items contained in the safe deposit boxes shall be itemised and
kept in safe custody after opening the safe deposit boxes. No item should be
sold, destroyed or disposed of.
7(2) The Inventory Sheet shall be signed by the of ficers mentioned in Direction
7(1) above. The Safe Deposit Inventory Sheet shall be prepared in accordance
with the instructions to these Directions and reporting format at Annex III and
submitted to the Monetary Board within six months of the end of each financial
year, along with the report on abandoned property referred to in Direction 2(1)
above.
8 In  view  of  the  introduction  of  this  Direction,  Circular  Letter
No. 02/17/402/0079/001, dated 2 May 2006, titled ‘Implementation of the
provisions of Sections 72 to 76 of the Banking Act on Abandoned Property’ is
hereby revoked with respect to its applicability to licensed commercial banks
and without prejudice to anything duly done under or in terms of such Circular


and without prejudice to anything duly done under or in terms of such Circular
Letter.Opening of Safe
Deposit Boxes.
Revocation.


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  329
Annex I
Annual Financial Return (LKR ’000)
BSD-AF-18-AP-I- Report of Abandoned Property – Additions during the period
Name of Bank :
Reporting Period:
* Description of Property
 1 . C urrent Account
 2 . Sa vings Account
 3 . Fi xed Deposit
 4 . C all Deposit
 5 . C enificate of Deposits
 6 . Su ndry Deposit
 7 . Mi nor Account
 8 . Cheques
 9 . B ank Draft
l0. Pa y Orders / Cash Orders
11. Sa vings Certificates
12. Ot hers (Pl. specify)
** Interest Bearing
1.  Yes
2.  No*** Currencies
1.  LKR
Designated Foreign Currencies
 1 . Au stralian Dollar
 2 . C anadian Dollar
 3 . De utche Mark
 4 . Euro
 5 . Fr ench Franc
 6 . Ho ngKong Dollar
 7 Ja panese Yen
 8 . Po und Sterling
 9 . Si ngapore Dollar
10. Swi ss Franc
11. Ot hers (Pl. specify)I ………………………………………………………, being first duly sworn, on oath depose and state that I have cause to be prepared and have examined this
report consisting of ………………………………………… pages totaling Rs. ……………………………………as to property presumed abandoned under the
provisions of the Banking Act, No. 30 of 1988, for the period stated above that I am duly authorised by the ……………………………………… ( name of the
bank ) to exucute this Report and that to the best of my knowledge and belief the Report is true, correct and complete as of said date, excepting for such property
as has since ceased to be abandoned.
Signature : ……………  Name : …………………………………  Designation : ………………………
Sworn and placed his/her signature before me on this ………… day of ……………… in the year ………
Signature : ………………………  Name : ……………………………………………  (18.1.0.0.0.0) (18.2.0.0.0.0) (18.3.0.0.0.0) (18.4.0.0.0.0) (18.5.0.0.0.0) (18.6.0.0.0.0) (18.7.0.0.0.0) (18.8.0.0.0.0) (18.9.0.0.0.0) (18.10.0.0.0.0) (18.11.0.0.0.0) (18.12.0.0.0.0) (18.13.0.0.0.0)(18.14.0.0.0.0):
(18.11.0.0.0.0)–
(18.12.0.0.0.0) (18.15.0.0.0.0)(18.16.0.0.0.0):
(18.14.0.0.0.0)*
(18.15.0.0.0.0) (18.17.0.0.0.0)
Name
of
BranchOwner’s Last
Name with


(18.14.0.0.0.0)*
(18.15.0.0.0.0) (18.17.0.0.0.0)
Name
of
BranchOwner’s Last
Name with
Other Names
in FullLast Known
Complete
AddressOwner’s
Identifi-
cation Nos.,
if available
(NIC,
Passport
No., Date of
Birth etc.)Description
of
Property*Property
Identifi-
cation No.Interest
bearing**Last
Activity
DateNature
of
ActivityCurrency*** Amount
DueAmount
DeductedDescription
of
DeductionNet Amount Ex. Rate Net Amount
in LKRTerms of
Agreement
and Owner’s
Instruction
0 0
0 0
0 0
0 0
0 0
0 0
Grand Total
(18.18 .0.0.0.0)


330 Directions, Determinations, and Circulars issued to Licensed Commercial BanksAnnex II
Annual Financial Return (LKR ’000)
BSD-AF-18-AP-II- Report of Abandoned Property – Settlements during the period
Name of Bank :
* Description of Property
 1 . C urrent Account
 2 . Sa vings Account
 3 . Fi xed Deposit
 4 . C all Deposit
 5 . C enificate of Deposits
 6 . Su ndry Deposit
 7 . Mi nor Account
 8 . C heques
 9 . B ank Draft
l0. Pa y Orders / Cash Orders
11. Sa vings Certificates
12. Ot hers (Pl. specify)
** Interest Bearing
1.  Yes
2.  No*** Currencies
1.  LKR
Designated Foreign Currencies
 1 . Au stralian Dollar
 2 . C anadian Dollar
 3 . De utche Mark
 4 . E uro
 5 . Fr ench Franc
 6 . Ho ngKong Dollar
 7 Ja panese Yen
 8 . Po und Sterling
 9 . Si ngapore Dollar
10. Swi ss Franc
11. Ot hers (Pl. specify)Reporting Period:
I ………………………………………………………, being first duly sworn, on oath depose and state that I have cause to be prepared and have examined this
report consisting of ………………………………………… pages totaling Rs. ……………………………………as to property presumed abandoned under the
provisions of the Banking Act, No. 30 of 1988, for the period stated above that I am duly authorised by the ……………………………………… ( name of the bank)
to exucute this Report and that to the best of my knowledge and belief the Report is true, correct and complete as of said date, excepting for such property as has
since ceased to be abandoned.
Signature : ………………  Name : …………………………  Designation : ………………………
Sworn and placed his/her signature before me on this ………… day of …………… in the year …………
Signature : ………………………  Name : ……………………………………………  (18.1.0.0.0.0) (18.2.0.0.0.0) (18.3.0.0.0.0) (18.4.0.0.0.0) (18.5.0.0.0.0) (18.6.0.0.0.0) (18.7.0.0.0.0) (18.8.0.0.0.0) (18.9.0.0.0.0) (18.10.0.0.0.0) (18.11.0.0.0.0) (18.12.0.0.0.0) (18.13.0.0.0.0)(18.14.0.0.0.0):
(18.11.0.0.0.0)–
(18.12.0.0.0.0) (18.15.0.0.0.0)(18.16.0.0.0.0):
(18.14.0.0.0.0)*
(18.15.0.0.0.0) (18.19.0.0.0.0) (18.20.0.0.0.0)
Name
of
BranchOwner’s Last


(18.14.0.0.0.0)*
(18.15.0.0.0.0) (18.19.0.0.0.0) (18.20.0.0.0.0)
Name
of
BranchOwner’s Last
Name with
Other Names
in FullLast Known
Complete
AddressOwner’s
Identifi-
cation Nos.,
if available
(NIC,
Passport No.,
Date of Birth
etc.)Description
of Property*Property
Identifi-
cation No.Interest
bearing**Last Activity
DateNature
of
ActivityCurrency*** Amount
DueAmount
DeductedDescription of
DeductionNet
AmountEx. Rate Net Amount in
LKRYear of
Identification
as Abandoned
propertyDate of
settlement of the
claim
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Grand Total
(18.18 .0.0.0.0)


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  331
Annex  III
Safe Deposit Box Inventory Sheet
Name of the Bank :
Position as at financial year end :
(18.1.0.0.0.0) (18.21.0.0.0.0) (18.22.0.0.0.0) (18.23.0.0.0.0) (18.24.0.0.0.0) (18.25.0.0.0.0) (18.26.0.0.0.0) (18.27.0.0.0.0)
Name
of
BarnchName of
Box OwnerBox
NumberVault
LocationDate
DrilledQuantity Detailed
Description of
ContentsAny other
relevant
information
We certify that the above information is true and that no items have been removed or destroyed.
Date of Inventory :
 ……………………………  ……………………………  ……………………………
 S ignature of Bank Official  Name of Official  Designation
 ……………………………  ……………………………  ……………………………
 S ignature of Bank Official  Name of Official  Designation


332 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Instructions for completing the Annexures on Abandoned Property
In terms of Section 73(1) of the Banking Act
Details of the property, as defined in terms of Section 72 of the Banking Act, should be recorded in
alphabetical order of the owners’ last name, to the extent possible, branch wise and currency wise.
Name of Bank :  Enter the name of the reporting Licensed Commercial Bank.
Reporting Date :  Enter the date as at when the reporting is done
                             (last calendar day of the financial year).
(18.1.0.0.0.0) Enter the name of the branch in which the customer account is held.
(18.2.0.0.0.0) Enter the owner’s last name followed by the first name and middle name/s in
full. Enter information that would aid in identification such as Miss, Mr., Mrs.,
after the middle name.
If a single item has two or more owners, the names of all such owners must be
reported, with the relationship.
If your records do not show the name of the owner of an item, enter the owner
as “unknown”.
(18.3.0.0.0.0) Enter the complete address available in your records. If no address is available,
indicate this fact. In the case of several owners, if the address is the same, the
address may be entered once and indicated that it is the same for the others.
(18.4.0.0.0.0) Enter the owner’s National Identity Card No., Passport No., Date of Birth or
any other information that will assist in identifying the owner. These will be
essential at the time of paying claims and if known, must be included in the
report.
(18.5.0.0.0.0) Select the description of the item from the list or, if it is not available, enter the
description with sufficient detail.
(18.6.0.0.0.0) Enter your identification number for each item such as Account No., etc.
(18.7.0.0.0.0) Select whether the item is interest bearing or not.
(18.8.0.0.0.0) Indicate the date when the last deposit, withdrawal or contact was made by the


(18.8.0.0.0.0) Indicate the date when the last deposit, withdrawal or contact was made by the
owner. It could also be the date a dividend became payable, cheque or draft was
issued, certificate was purchased etc.
(18.9.0.0.0.0) Indicate the nature of the last activity. E.g. A withdrawal, a deposit to the
account etc.
(18.10.0.0.0.0) Select the currency in which the account is maintained from the list or, if it is
not available, enter the relevant currency.
(18.11.0.0.0.0) Indicate the total amount due to the owner, including all interest, dividends
etc., earned up to the reporting date, without deducting any service charges. In
the case of safe deposit boxes or other items held for safekeeping, identify the
contents and include the description of any item that has a value. For all safe
deposit boxes, include an inventory sheet as in Annex III.
(18.12.0.0.0.0) Enter the amount of deductions made which should include only any lawful
charges.
(18.13.0.0.0.0) Indicate the nature of any deduction made such as service charges, tax etc.
(18.14.0.0.0.0) The net amount due after the deductions mentioned.
(18.15.0.0.0.0) Indicate the exchange rate applicable in the case of any currency other than
LKR, as at the end date of the reporting period.


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  333
(18.16.0.0.0.0) The net amount due in LKR.
(18.17.0.0.0.0) Indicate the terms agreed with the owner, such as interest rate, payment
instructions etc., that will be essential in the case of any payment of claims. Also
indicate any special considerations attached to such property and the date of
maturity in the case of term deposits.
(18.18.0.0.0.0) Total of the net amount due in LKR in (18.16.0.0.0.0).
(18.19.0.0.0.0) Indicate the year of reporting/identifying the particular property as abandoned
property in reporting to CBSL.
(18.20.0.0.0.0) Indicate the date of settlement of the claim to the customer.
(18.21.0.0.0.0) Indicate the full name(s) of the owner(s) including information useful for identifying
the owner.
(18.22.0.0.0.0) Indicate the safe deposit box number.
(18.23.0.0.0.0) Indicate the place at which the vault containing the safe deposit is located.
(18.24.0.0.0.0) Indicate the date the safe deposit was opened.
(18.25.0.0.0.0) Indicate the quantity of items in the safe deposit box.
(18.26.0.0.0.0) Indicate the nature of each item contained in the safe deposit box.
(18.27.0.0.0.0) Indicate any other relevant information.


334 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Ref. No. : 02  / 17 / 402 / 0079  / 001
Bank Supervision Department
May 02, 2006
To :  CEOs of Licensed Commer cial Banks and
   CEOs of Licensed Specialised Banks
Dear Sirs,
IMPLEMENTATION OF THE PROVISIONS OF PART IX (SECTIONS 72 TO 76)
OF THE BANKING ACT ON ABANDONED PROPERTY
As intimated to you at the meeting of the CEOs of Licensed Commercial Banks and Licensed
Specialised Banks held on 24.11.05, in terms of Section 73(1) of the Banking Act, all licensed
commercial banks (LCBs) are hereby required to report “Abandoned Property” referred to in
Section 72 of the Banking Act in the format determined by the Monetary Board given in Annex 1.
In implementing the provisions of the Banking Act on Abandoned Property LCBs are requested to
follow the guidelines at Annex 2.
The provisions of the Banking Act do not require the licensed specialized banks (LSBs) to
report Abandoned Property. However, the LSBs too are requested to identify the articles that could
be considered abandoned as described in Section 72 of the Banking Act and to report them using the
format at Annex 1 till such time these provisions are made applicable to LSBs as well.
The first Report should contain property that would have been presumed abandoned up to
31.12.2005.
Please acknowledge receipt of this letter.
Yours faithfully,
Sgd. Director of Bank Supervision
Encl:


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  335
Annex 1
Report of Abandoned Property
Name of Bank          :
Reporting Period      :
A B C D E F G H I J K L M
Owner’s
Last Name
with Other Names
in Full Last
known
Complete
AddressOwner’s
Identification
Nos., if available
(NIC,
Passport No.,
date of birth etc.)Descrip-
tion
of
PropertyProperty
Identi-
fication
NumberInterest
bearing
Yes/NoLast
Activity
DateNature
of
ActivityAmount
DueAmount
DeductedDescrip-
tion
of
DeductionAmount Terms of
Agreement
and owner’s
instructions
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Total

I, ……………………………………………………….., being first duly sworn, on oath depose and state that I have cause to be prepared and have examined
this report consisting of …………………pages totaling Rs …………….. as to property presumed abandoned under the provisions of the Banking Act, No.30
of 1988, for the period stated above that I am duly authorised by the ...................................................................... (name of the bank) to execute this Report
and that to the best of my knowledge and belief the Report is true, correct and complete as of said date, excepting for such property as has since ceased to be
abandoned.
Signature:  ………………………………………      Name: ………………………………………    Designation:   ………………………………………

Sworn and placed his/her signature before me on this ….. day of………  in the year ……
Signature:  ………………………………………      Name: ………………………………………


336 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Annex 2
Guidelines on the implementation of Part IX (Section 72 to 76) of the Banking Act
on Abandoned Property
The Central Bank of Sri Lanka has decided to implement the provisions of Part IX of the Banking Act
with effect from 31 December 2005. These guidelines establish the procedures for handling such property.
1.	Identification 	of	Abandoned 	Property
a. All licensed commercial banks (LCBs) should identify articles presumed to be abandoned property
as described in Section 72 of the Banking Act. In general abandoned property includes the following
articles in respect of which no activity has been evidenced for a period of ten years.
• Any general deposit (demand, savings or matured time deposit) with an LCB with any interest
or dividend but excluding any lawful charges.
• Any funds paid towards the purchase of shares or other interests in an LCB with any interest or
dividend but excluding any lawful charges.
• Any sum payable on cheques or other instruments for which the LCB is directly liable.
• Any intangible personal property and any income or interest thereon held in a fiduciary capacity.
• The contents of safe deposit boxes upon which the rental period has expired and of which notice
has been sent by registered post to the last known address of the lessee and the lessee has failed
to respond within three years.
b. Activity in this regard is evidenced by any action taken by an owner with respect to his property,
which indicates that the owner does not intend his property to be considered abandoned. Such
action would include a deposit or a withdrawal in the case of a customer account, notification of
change of address, payment of a safe deposit rental charge, any other written correspondence,
presenting the pass book for updating etc.
2. Filing of the Report on Abandoned Property with the Central Bank of Sri Lanka (CBSL)


2. Filing of the Report on Abandoned Property with the Central Bank of Sri Lanka (CBSL)
a. All LCBs holding any abandoned property should submit a report to CBSL within six months of the
end of each financial year. The first Report should cover property that would have been presumed
abandoned up to 31.12.2005. In the case of LCBs whose financial year ends on 31 March, the first
report may cover the position as at 31.03.2006.
b. A ll reporting of abandoned property should be in accordance with the format approved by the
Monetary Board given at Annex 1. Information should be recorded in alphabetical order of the
owners’ last name, to the extent possible, and branchwise. Minors accounts should be reported
separately. The process of identifying and completing the Report is expected to be automated by
LCBs.
c. While the banks should report all property that falls within the definition of abandoned property, if
there are special considerations attached to such property, e.g.: the owner having migrated or left the
country for an infinite period with notice to the bank, such special consideration should be reported
to CBSL.
d. Where an LCB does not hold any abandoned property to be reported as required by Section 73
of the Banking Act, the respective bank is expected to formally communicate it to CBSL. Such
communication will be considered as a “Negative Report”.
e. Prior to reporting abandoned property to CBSL, the banks should make notification of it to the
owner of such abandoned property, by registered mail, to the last known address of the owner giving
a reasonable period to respond. Such notice should include a description of the property, a statement
explaining the statutory requirements of abandoned property and the intended date that the property
will be reported to CBSL if there is no response. In the case of Minors’ accounts where the banks are


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  337
of the view that it is not reasonable to consider a particular account as abandoned due to its intrinsic
characteristics, banks need not notify the owners/guardians of such accounts. However, the banks
should report all Minors’ accounts that fall within the definition of abandoned property to CBSL
with specific mention why they should not be considered as abandoned property .
f. Pursuant to the filing of a Report on Abandoned Property, a bank should maintain documents
necessary to prove information submitted in the Report for a period of at least six years from the
date of submitting the Report.
3. Delivery of Abandoned Property to CBSL
Any further action to be taken in terms of Subsections (2) and (3) of Section 73 of the Banking Act
will be notified to all LCBs in due course.
4. Publication of Notice of Abandoned Property
a. In accordance with Section 74 of the Banking Act a bank should, within thirty days of submission
of the Report, required under paragraph 2.a above,
• publish a notice in the Sinhala, Tamil and English daily newspapers stating the name of the owner
and particulars concerning the property; and
• should dispatch by registered post, a notice containing particulars of the property to the last
known address of the owner.
b. W ith regard to Minors’ accounts, the procedure stated in paragraph 2 e. above should be followed.
5. Drilling/Opening of safe deposits
a. T he bank should prepare a Safe Deposit Inventory Sheet to record details of safe deposit
boxes opened. Opening of the safe custody lockers should be carried out in the presence of
two responsible officers who are, inter-alia, specifically assigned with such task and one of
whom should be at least at Senior Executive Level. All items found in safe deposit boxes
presumed to be abandoned should be included in the Inventory Sheet without exceptions.
No item should be sold, destroyed or disposed.


No item should be sold, destroyed or disposed.
b. The format at Annex 3 may be used for this purpose. The Inventory Sheet should be signed by the
staff conducting the inventory and returned to CBSL along with the Report on Abandoned Property.
c. All items contained in the safe deposit boxes should be itemised and kept in safe custody after the
drilling/opening of safe deposit boxes.
6. The costs
The banks should attempt to comply with these guidelines in the most cost efficient manner. These
costs should be charged to the owners of abandoned property only if it has been made known to the
customers in a valid, enforceable and written contract between the bank and the customer, specifying
the amount of the fee and the customer is notified of the charging of such fee.
7. Submission of information by licensed specialized banks (LSBs)
The provisions of the Banking Act do not require LSBs to identify and report Abandoned Property.
However, LSBs are requested to identify the articles that could be considered abandoned as described
in Section 72 of the Banking Act and to report them to CBSL using the format at Annex 1.


338 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Instructions for completing the Report of Abandoned Property at Annex 1
Information should be recorded in alphabetical order of the owners’ last name, to the extent possible, and
branchwise. A seperate sheet should be used for Minors accounts.
Name of Bank: Enter the name of the reporting bank.
Reporting Date: Enter the date as at when the reporting is done.
Column A:  Enter the owner’s last name followed by full first name and full middle name/s.
Enter information that would aid in identification such as Miss, Mr., Mrs., after the
middle name.
 If a single item has two or more owners, the names of all such owners must be reported
with the relationship.
 If your records do not show an owner name for an item, enter the owner as “unknown”.
Column B:  Enter the complete address available in your records. If no address is available indicate
so. In the case of several owners if the address is same, the address may be entered once
and indicated that it is same for others.
Column C:  Enter the owner’s National Identity Card No., Passport No., date of birth or any other
information that will assist in identification of an owner. These will be essential in paying
claims and if known, they must be included in the Report.
Column D:  Enter the description of item with sufficient detail.
Column E:  Enter your identification number for each item such as Account No., Cheque No. etc.
Column F:  Indicate whether the item is interest bearing.
Column G:  Indicate the date when the last deposit, withdrawal or contact was made by the owner.
It could also be the date a dividend became payable, cheque or draft was issued, certificate
was purchased.
Column H:  Indicate the nature of the last activity .
Column I:  Indicate the total amount due to the owner including all interest, dividend, earned up to
the reporting date without deducting any service charges.


the reporting date without deducting any service charges.
 In the case of safe deposit boxes or oth er items held for safekeeping, identify the contents
and include the description of any item that has a value. For all safe deposit boxes include
an inventory sheet as in Annex3.
Column J:  Enter the amount of deductions made which should include only any lawful char ges.
Column K:  Indicate the nature of deduction made such as service char ges, tax etc.
Column L:  Indicate the net amount due after the deductions mentioned.
Column M:  Indicate the terms agreed with the owner such as interest rate, payment instructions etc.,
that will be essential in case of payment of claims.
 Also indicate any special considerations attached to such property and the date of maturity
in case of term deposits.
Total:  T otal the Column L and enter at the bottom of each page. On the last page enter the page
total and the grand total for the entire Report.


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  339
Annex 3
Safe Deposit Box Inventory Sheet
Name of Bank:  …………………………………………………………………………………………
Reporting Year:  …………………………………………………………………………………………
Name of Box Owner(s):  ………………………………………………………………………………
Box Number: …………………  Date Drilled: …………………  Vault Location: ……………..
Quantity Detailed Description of Contents Any other Relevant Information
We certify that the above information is true and that no items have been removed or destroyed.
Date of Inventory:
 --------------------------------  ---------------------------------  ------------------------------
 Signatur e of Bank Official  Name of Official  Designation
 --------------------------------  ---------------------------------  ------------------------------
 Signatur e of Bank Official  Name of Official  Designation
Instructions for completing the Safe Deposit Box Inventory Sheet at Annex 3
Name of Bank: Enter the name of the reporting bank.
Reporting Date: Enter the date as at the date of reporting.
Name of the Box Owner(s):  Indicate the full name(s) of the owner(s) including information useful for
owner identification.
Box Number: Enter the safe deposit box number.
Date Drilled: Enter the date the safe deposit box was opened.
Vault Location: Indicate where the vault containing the safe deposit is located.
Quantity & Detailed Description:  Indicate the nature of each item contained in the safe deposit box
with the quantities.
Date of Inventory: The date on which the inventory was taken.


340 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Ref. No. : BS/14/88  V ol. IV
16 October, 1990
To :  All Commercial Banks
IMPLEMENTATION OF PART V OF BANKING ACT
All commercial banks are hereby informed that the Honourable Minister of Finance has announced,
in the Gazette Extraordinary No.628/10 dated 18th September 1990, 20th September 1990 as the date on
which the provisions of Part V of the Banking Act No.30 of 1988 shall come into operation.
The formats to be used by commercial banks in the preparation of Balance Sheets and Profit & Loss
Accounts specified under section 38(3) of the Banking Act will be forwarded to you shortly.
Yours faithfully,
Sgd.  P. T. Sirisena
Director of Bank Supervision


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  341
Ref. No. : BS/38/90
Bank Supervision Department
Central Bank of Sri Lanka
8th Floor – Renuka Building
41 Janadhipathi Mawatha
Colombo 1.
30 April 1998.
To : All Licensed Commercial Banks
Dear Sir,
LIST OF QUALIFIED AUDITORS
S.38 A OF THE BANKING ACT NO.30 OF 1988 AS AMENDED BY ACT NO.33 OF 1995
We refer to section 38 a of the Banking Act, No.30 of 1988 as amended by Act No.33 of 1995 and
enclose herewith a list of qualified  auditors compiled in accordance with S.38 A(1) of the Act.
Your attention is drawn to S.38 a (2) and S.39(1) of the Act which requires that the appointment
of an auditor to audit  the accounts of your Bank from the list transmitted to you under S.38 a(1) by the
Director of Bank Supervision.
You are required to comply with this provision when you next appoint an auditor in terms of S.39
of the Banking Act, No.30 of 1988 as amended by Act No.33 of 1995.
Please acknowledge receipt of this letter.
Yours faithfully,
Sgd.  Y. A. Piyatissa
Director of Bank Supervision


342 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
List	of	Qualified 	Auditors
S 38 A (1) of the Banking Act, No. 30 of 1988 as amended by Act, No.33 of 1995
 Name  Addr ess
 1. Ernst & Young  201 De Saram Place
  P.O. Box 101
  Colombo 10.
 2. K P  M G Ford Rhodes Thornton & Co.  32A Sir Mohamed Macan Marker Mawatha
  P.O. Box 186
  Colombo 3.
 3. Pricewaterhouse Coopers  P.O. Box 918
  100, Braybrooke Place
  Colombo 2.
 4. SJMS Associates  2 Castle Lane
  Colombo 4.
 5. H L  B Edirisinghe & Co.  45 Braybrooke Street
  Colombo 2
 6. B R de Silva & Co.  22/4 Vijaya Kumaratunga Mawatha
  Colombo 5.
 7. Kreston MNS & Co.  P.O. Box 210
  50/2 Sir James Peiris Mawatha
  Colombo 2.
 8. BDO Hathy  ‘Charter House’
  65/2
  Sir Chittampalam A Gardiner Mawatha
   P.O. Box 962
  Colombo 2.
 9. B V Fernando & Co.  78-3 1/1 Rodney Street
  Colombo 8
10. T issa Fernando  519/2B Elvitigala Mawatha
  Colombo 5.


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  343
Ref. No. : BS/38/90
Bank Supervision Department
8th Floor, Renuka Building
41, Janadhipathi Mawatha
Colombo 01.
2nd June, 1998
Dear Sir,
PREPARATION OF ANNUAL AUDITED ACCOUNTS – SECTION 38(4)
OF THE BANKING ACT NO. 30 OF 1988 AS AMENDED BY
BANKING AMENDMENT ACT NO. 33 OF 1995
We refer to Section 38(3) of Part V of the Banking Act in terms of which, the Monetary Board is
empowered to specify the form of the Balance Sheet and Profit & Loss Account of Licensed Commercial
Banks in Sri Lanka.
In this regard, Licensed Commercial Banks are informed that the Central Bank of Sri Lanka
has revised the Prescribed Format for the preparation and publication of Annual Audited Accounts of
Licensed Commercial Banks by incorporating SLAS 23. The Revised Prescribed Format has already
been sent to you for your comments/observations.
I wish to advise you that in terms of Part V of the Banking Act, Licensed Commercial Banks are
required to prepare and exhibit their annual audited accounts according to this revised format. The
revised Prescribed Format which is effective from 1st January, 1998 is enclosed herewith.
Please acknowledge receipt of this letter.
Yours faithfully,
Sgd.  Y. A. Piyatissa
Director of Bank Supervision
(Formats referred to in the Circular are replaced with Circular No. 02/17/900/0001/04 dated 11.02.2013)


344 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Ref. No. : 02  / 17 / 900 / 0001  / 04
Bank Supervision Department
11 February, 2013
To : CEOs of all Licensed Commercial Banks and
       Licensed Specialised Banks
Dear Sir / Madam,
PREPARATION, PRESENTATION AND PUBLICATION OF
ANNUAL AUDITED ACCOUNTS OF BANKS
We refer to our previous correspondence and discussions on the above and enclose the new format
for the preparation, presentation and publication of annual audited accounts of licenced commercial
banks and licensed specialised banks effective from the financial reporting periods beginning on or after
1 January 2012.
Accordingly, formats referred to in the Circulars dated 02 June 1998 and 15 December 1999 on
preparation of annual audited accounts of licensed commercial banks and licensed specialised banks,
respectively, are replaced with the format in Annex.
Yours faithfully,
(Mrs.) T M J Y P Fernando
Director of Bank Supervision
Encl.
Copy to :  The Secretary-General, Sri Lanka Banks’  Association (Gurantee) Ltd.
 Panel of Auditors


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  345
SPECIFIED FORMAT FOR THE PREPARATION OF
ANNUAL FINANCIAL STATEMENTS OF
LICENSED COMMERCIAL BANKS
AND
LICENSED SPECIALISED BANKS
 Annex


346 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Financial Statements
Table of Contents
Financial Statements
 Income Statement
 Statement of Comprehensive Income
 Statement of Financial Position
 Statement of Changes in Equity
 Statement of Cash Flows
Notes to the Financial Statements
 1. Corporate Information
 2. Accounting Policies
 3. Segment Information
Income Statement
 4. Net Interest Income
 5. Net Fee and Commission Income
 6. Net Gain/(Loss) from Trading
 7. Net Gain/(Loss) from Financial Instruments Designated at Fair Value through Profit or Loss
 8. Net Gain/(Loss) from Financial Investments
 9. Other Operating Income (net)
10. Impairment for Loans and Other Losses
11. Personnel Expenses
12. Other Expenses
13. T ax Expenses
14. Earnings Per Share
Statement of Financial Position: Assets
15. Analysis of Financial Instruments by Measurement Basis
16. Cash and Cash Equivalents
17. Balances with Central Banks
18. Placements with Banks
19. Derivative Financial Instruments
20. Other Financial Assets at Fair Value through Profit or Loss
21. Loans and Receivables to Banks
22. Loans and Receivables to Other Customers
23. Financial Investments - Available-for-Sale
24. Financial Investments - Held-to-Maturity
25. Investments in Subsidiaries
26. Investments in Associates and Joint Ventures
27. Property , Plant and Equipment
28. Investment Properties
29. Goodwill and Intangible Assets
30. Deferred Tax Assets/Liabilities
31. Other Assets


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  347
Statement of Financial Position: Liabilities
32. Due to Banks
33. Derivative Financial Instruments
34. Other Financial Liabilities at Fair Value through Profit or Loss
35. Due to Other Customers
36. Other Borrowings
37. Debt Securities Issued
38. Other Provisions
39. Other Liabilities
40. Due to Subsidiaries
41. Subordinated T erm Debts
Statement of Financial Position: Capital and Reserves
42. Stated Capital/Assigned Capital
43. Statutory Reserve Fund
44. Retained Earnings
45. Other Reserves
46. Non-controlling Interests

Off-Balance Sheet Information
47. Contingent Liabilities and Commitments
Other Disclosures
48. Related Party Disclosures
49. Net Assets Value per Ordinary Share
Statement of Cash Flows
50. Non-Cash items included in Profit Before Tax
51. Changes in Operating Assets
52. Changes in Operating Liabilities
Other Disclosure Requirements
1. Information about the significance of financial instruments for financial position and performance
2. Information about the nature and extent of risks arising from financial instruments
3. Other disclosures


348 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
INCOME STATEMENT
FOR THE YEAR ENDED  DD MM YYYY
In Rupees Million
NoteBank Group
20XX 20XX 20XX 20XX
Interest income
Interest expenses
Net interest income 04
Fee and commission income
Fee and commission expenses
Net fee and commission income 05
Net gain / (loss) from trading 06
Net gain / (loss) from financial instruments
designated at fair value through profit or loss07
Net gain / (loss) from financial investments 08
Other operating income (net) 09
Total operating income
Impairment for loans and other losses 10
Net operating income
Personnel expenses 11
Other expenses 12
Operating profit/(loss) before value added tax (V AT)
Value added tax (V AT) on financial services
Operating profit/(loss) after value added tax (V AT)
Share of profits of associates and joint ventures
Profit / (loss) before tax
Tax expenses 13
Profit / (loss) for the year
Profit attributable to:
Owners of the parent
Non-controlling interests
Earnings per share on profit 14
Basic earnings per ordinary share
Diluted earnings per ordinary share


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  349
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED  DD MM YYYY
In Rupees Million
NoteBank Group
20XX 20XX 20XX 20XX
Profit / (loss) for the year
Other comprehensive income, net of tax
Changes in revaluation surplus
Actuarial gains and losses on defined benefit plans
Gains and losses (arising from translating
 the financial statements of a foreign operation)
Gains and losses on re-measuring
 available-for -sale financial assets
Gains and losses on cash flow hedges
Others
Share of profits of associates and joint ventures
Less:  T ax expense/(income) relating to components
of other comprehensive income
Other comprehensive income for the year, net of
taxes
Total comprehensive income for the year
Attributable to:
Owners of the parent
Non-controlling interests


350 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
STATEMENT OF FINANCIAL POSITION
AS AT  DD MM YYYY
In Rupees Million
NoteBank Group
20XX 20XX 20XX 20XX
Assets
Cash and cash equivalents 16
Balances with central banks 17
Placements with banks 18
Derivative financial instruments 19
Other financial assets held-for-trading 20
Financial assets designated at fair value
 through profit or loss20
Loans and receivables to banks 21
Loans and receivables to other customers 22
Financial investments – Available-for-sale 23
Financial investments – Held-to-maturity 24
Investments in subsidiaries 25
Investments in associates and joint ventures 26
Property, plant and equipment 27
Investment properties 28
Goodwill and intangible assets 29
Deferred tax assets 30
Other assets 31
Total assets
Liabilities
Due to banks 32
Derivative financial instruments 33
Other financial liabilities held-for-trading 34
Financial liabilities designated at fair value
 through profit or loss34
Due to other customers 35
Other borrowings 36
Debt securities issued 37
Current tax liabilities
Deferred tax liabilities 30
Other provisions 38
Other liabilities 39
Due to subsidiaries 40
Subordinated term debts 41
Total liabilities
Equity
Stated capital/Assigned capital 42
Statutory reserve fund 43
Retained earnings 44
Other reserves 45
Total equity  of the owners of the parent
 Non-controlling interests46
Total equity
Total equity and liabilities
Contingent liabilities and commitments 47


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  351
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED  DD MM YYYY
BANK / GROUP
In Rupees Million
Stated capital/
Assigned
capitalReserves
Total
Non-controlling interest
Total equityOrdinary
voting shares
Ordinary
non-voting shares
Assigned capital
Reserve fund
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
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)


352 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED  DD MM YYYY
In Rupees Million
NoteBank Group
20XX 20XX 20XX 20XX
Cash	flows	from	operating 	activities
Profit before tax
Adjustment for :
Non-cash items included in profits before tax 50
Change in operating assets 51
Change in operating liabilities 52
Net gains from investing activities
Share of profits in associates and joint ventures
Dividend income from subsidiaries and associates
Interest expense on subordinated debt
Others (please specify)
Contribution paid to defined benefit plans
Tax paid
Net cash generated 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 and associates
Net cash flow from disposal of subsidiaries
Proceeds from disposal of 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
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 the owners of the parent company
Dividend paid to holders of other equity instruments
Others (please specify)
Net	cash	from	financing 	activates
Net increase/(decrease) in cash & cash equivalents
Cash and cash equivalents at the beginning of the year
Exchange difference in respect of cash & cash equivalent
Cash and cash equivalents at the end of the year


Cash and cash equivalents at the end of the year
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


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  353
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  Impairment losses on loans and receivables
2.3.3  Impairment of available-for -sale investments
2.3.4  Deferred tax assets
2.3.5  Pensions obligation
2.3.6  Others
2.4 Changes in accounting policy and disclosures
2.5 Summary of significant accounting policies
2.5.1  Foreign currency translation
2.5.2  Financial instruments - initial recognition and subsequent measurement
2.5.3  Impairment of financial assets and subsequent measurement of financial liabilities
2.5.4  Impairment of non-financial assets
2.5.5  Repurchase and reverse repurchase agreements
2.5.6  Securities lending and borrowing
2.5.7  Determination of fair value
2.5.8  Hedge accounting
2.5.9  Of f-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 assets
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
2.5.23  Segment reporting
2.5.24  Others


354 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
3. Segment information (as per  SLFRS 8)
4. Net Inter est Income
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Interest income
Cash and cash equivalents
Placements with banks
Derivative financial instruments
Other financial assets held-for-trading
Financial assets designated at fair value through profit or loss
Loans and receivables to banks
Loans and receivables to other customers
Financial investments – Held-to-maturity
Financial investments – Available-for-sale
Others (Please specify)
Total interest income
Interest expenses
Due to banks
Derivative financial instruments
Other financial liabilities at fair value through profit or loss
Due to other customers
Other borrowings
Debt securities issued
Others (Please specify)
Total interest expenses
Net interest income
a.  Net Interest Income from Sri Lanka Government Securities
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Interest income
Less : Interest expenses
Net interest income
5. Net Fee and Commission Income
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Fee and commission income
Fee and commission expenses
Net fee and commission income


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  355
Comprising
Loans
Cards
Trade and remittances
Investment banking
Deposits
Guarantees
Others (Please specify)
Net fee and commission income
6. Net Gain / (Loss) fr om Trading
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Foreign exchange
 From banks
 From others customers
Interest rates
Equities
Others (Please specify)
Total
7.	 Net	Gain	/	(Loss)	from	Financial 	Instruments 	Designated 	at	Fair	Value	through	Profit	or	Loss
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Gains on financial assets designated at fair value
through profit or loss
Losses on financial assets designated at fair value
through profit or loss
Gains on financial liabilities designated at fair value
through profit or loss
Losses on financial liabilities designated at fair value
through profit or loss
Total
8. Net Gain / (Loss) fr om Financial Investments
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Assets available-for-sale
 Debt securities
 Equities
 Others (Please specify)
Others (Please specify)
Total


356 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
9. Other  Operating Income (net)
In Rupees Million
Bank Group
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
Others (Please specify)
Other Operating Income (net)
10. Impairment for  Loans and Other Losses
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Loans and receivables
 T o banks [Note 21(b)]
 T o other customers [Note 22(c)]
Financial investments
 A vailable-for-sale [Note 23(a)]
 Held-to-maturity [Note 24(a)]
Investment in subsidiaries [Note 25(a)]
Investments in associates and joint ventures [Note 26(a)]
Property, plant and equipment [Note 27(c)]
Investment properties [Note 28(b)]
Off-balance sheet exposures [Note 39]
Others (Please specify)
Total
11. Personnel Expenses
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Salary and bonus
Contributions to defined contribution / benefit plans
Share based expenses
Others
Total


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  357
12. Other  Expenses
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Directors’ emoluments
Auditors’ remunerations
Non-audit fees to auditors
Professional and legal expenses
Depreciation of property, plant and equipment
Amortisation of leasedhold property
Amortisation of intangible assets
Operating lease expenses
Office administration and establishment expenses
Others (Please specify)
Total
13. T ax Expenses
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Current tax expense
 Current year
 Prior years’  provision
Deferred tax expense
 Ef fect of change in tax rates
 T emporary differences
 Prior years’  provision
Total
a.  Reconciliation of tax expenses
In Rupees Million
Bank Group
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 :  T ax effect of expenses that are
not deductible for tax purposes
Less :  T ax effect of expenses that are
deductible for tax purposes
Tax expense for the period


358 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
b.  The deferred tax (credit) / charge in the income statement comprise of the following:
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Deferred tax assets
Deferred tax liabilities
Other temporary differences
Deferred tax (credit) / charge to income statement
14. Earnings Per  Share
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Net profit attributable to ordinary equity holders
Adjust :
 Interest on preference shares
 Interest on convertible bonds
Net profit attributable to ordinary equity holders adjusted for the ef fect 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
15. Analysis of Financial Instruments by Measur ement Basis
In Rupees Million
a. Bank – Curr ent year (20XX)
HFTDesignated
at fair valueHTMAmortised
costAFS Hedging Total
ASSETS
Cash and cash equivalents
Balances with central banks
Placements with banks
Derivative financial instruments
Other financial assets at
 fair value through profit or loss
Loans and receivables to banks
Loans and receivables to other
 customers
Financial investments
Total financial assets


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  359
HFTDesignated
at fair valueAmortised
costHedging Total
LIABILITIES
Due to banks
Derivative financial instruments
Other financial liabilities at
 fair value through profit or loss
Due to other customers
Debt securities issued
Other borrowings
Total financial liabilities
HFT  –  Held for trading
Designated at fair value  –  Designated at fair value through profit or loss
Amortised cost  –  Loans and receivables/deposits at amortised cost
HTM  –  Held-to-maturity
AFS  –  Available-for-sale
Hedging  –  Instruments of fair value and cash flow hedging
In Rupees Million
b. Bank – Pr evious year (20XX)
HFTDesignated
at fair valueHTMAmortised
costAFS Hedging Total
ASSETS
Cash and cash equivalents
Balances with central banks
Placements with banks
Derivative financial instruments
Other financial assets at
 fair value through profit or loss
Loans and receivables to banks
Loans and receivables to other
 customers
Financial investments
Total financial assets
HFTDesignated
at fair valueAmortised
costHedging Total
LIABILITIES
Due to banks
Derivative financial instruments
Other financial liabilities at
 fair value through profit or loss
Due to other customers
Debt securities issued
Other borrowings
Total financial liabilities


360 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
c. Gr oup – Current year (20XX) [as per 15(a) above]

d. Gr oup – Previous year (20XX) [as per 15(b) above]
16. Cash and Cash Equivalents
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Cash in hand
Balances with banks
Money at call and short notice
Total
17. Balances with Central Banks
In Rupees Million
Bank Group
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
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Total


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  361
19. Derivative Financial Instruments
In Rupees Million
Bank Group
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.	Other 	Financial 	Assets	at	Fair	Value	through	Profit	or	Loss
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Held for trading
 Sri Lanka Government Securities
  (separately by instrument-wise)
 Equity securities
 Debt securities
 Others (Please specify)
Sub Total
Designated at fair value through profit or loss
 Sri Lanka Government Securities
  (separately by instrument-wise)
 Debt securities
 Equity securities
 Loans and receivables to banks (Note 21)
 Loans and receivables to other customers (Note 22)
 Others (Please specify)
Sub Total
Total
a. Financial Assets Held for Trading
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Financial assets held for trading pledged as collateral
Other financial assets held for trading
Total


362 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
21. Loans and Receivables to Banks
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Gross loans and receivables
Less : Individual impairment
Of which : Loans and receivables designated at fair value
     through profit or loss (Note 20)
Net loans and receivables
a.  Analysis
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
By product
Loans and advances
 Overdrafts
 Short-term loans
 Long-term loans
 Securities purchased under resale agreements
 Others (Please specify)
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
b. Movements in Individual Impairment during the year
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Individual impairment
 Opening balance at DD MM YY
 Char ge / (Write back) to income statement
 W rite-off during the year
 Other movements
Closing balance at DD MM YY


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  363
22. Loans and Receivables to Other  Customers
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Gross loans and receivables
Less : Individual impairment
    Collective impairment
Of which : Loans and receivables designated at fair value
     through profit or loss (Note 20)
Net loans and receivables
a.  Analysis
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
By product
 Loans and advances
  Overdrafts
  T rade finance
  Lease rentals receivable
  Credit cards
  Pawning
  Staff loans
  T erm loans
   Short-term
   Long-term
  Securities purchased under resale agreements
  Others (Please specify)
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


364 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
b. Lease r entals receivable (Disclose as per LKAS 17)
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Please specify
Total
c. Movements in Individual and Collective Impairment during the year
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Individual impairment
 Opening balance at DD MM YY
 Char ge / (Write back) to income statement
 W rite-off during the year
 Other movements
Closing balance at DD MM YY
Collective impairment
 Opening balance at DD MM YY
 Char ge / (Write back) to income statement
 Other movements
Closing balance at DD MM YY
Total
23. Financial Investments – Available-for-Sale
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Sri Lanka Government Securities (separately by instrument-wise)
Equity securities
Debt securities
Others
Less : Impairment
Net Available-for-sale Investments
a.  Movements in Impairment during the year
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Opening balance at DD MM YY
Charge / (Write back) to income statement
Write-off during the year
Other movements
Closing balance at DD MM YY


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  365
b.  Financial Investments – Available-for-Sale
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Financial investments – Available-for-sale pledged as collateral
Other financial investments – Available-for-sale
Total
24. Financial Investments – Held-to-Maturity
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Sri Lanka Government Securities (separately by instrument-wise)
Debt securities
Others
Less : Impairment
Net Total
Of which : Held-to-Maturity investments designated at fair value
     through profit or loss (Note 20)
Net Held-to-Maturity Investments
a.  Movements in Impairment during the year
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Opening balance at DD MM YY
Charge / (Write back) to income statement
Write-off during the year
Other movements
Closing balance at DD MM YY
25. Investments in Subsidiaries
In Rupees Million
Bank
20XX 20XX
Quoted equity share
Unquoted equity share
Less : Impairment
Net Total
Note : Please provide details of subsidiaries, separately.


366 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
a.  Movements in Impairment during the year
In Rupees Million
Bank
20XX 20XX
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. Investments in Associates and Joint Ventures
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Associates
Unquoted equity share
Quoted equity share
Less : Impairment
Sub Total
Joint Ventures
Unquoted equity share
Quoted equity share
Less : Impairment
Sub Total
Total
Note : Please provide details of associates and joint ventures separately.
a.  Movements in Impairment during the year
In Rupees Million
Bank Group
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


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  367
27. Pr operty, Plant and Equipment
a. Pr operty, Plant and Equipment – Bank
In Rupees Million
Bank 20XXLand
and Buildings
Leasehold
properties
Computer
Hardware
Computer
Software
Office
Equipment,
furniture and
	fittings
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
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


368 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
b.  Property, Plant and Equipment – Group [as per 27(a) above]
c.  Movements in Impairment during the year
In Rupees Million
Bank Group
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
28. Investment Pr operties
a.  Investment Properties as Cost / fair value
In Rupees Million
Bank Group
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 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.  Movements in Impairment during the year
In Rupees Million
Bank Group
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


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  369
29. Goodwill and Intangible Assets
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Goodwill
Opening balance at DD MM YY
Adjustments
Less : Impairment
Sub-total (closing balance at DD MM YY
Other Intangible Assets
Opening balance at DD MM YY
Adjustments
Sub-total (closing balance at DD MM YY
Total
30. Deferr ed Tax Assets / Liabilities
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Deferred tax assets
Deferred tax liabilities
Income statement
Net Total
31. Other  Assets
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Cost
Receivables
Deposits and prepayments
Sundry debtors
Others (Please specify)
Total
32. Due to Banks
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Borrowings
Securities sold under repurchase (repo) agreements
Others (Please specify)
Total


370 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
33. Derivative Financial Instruments
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Interest rate derivatives
 Interest rate swaps
 Interest rate futures
 Interest rate options
 Others (Please specify)
Foreign exchange derivatives
 Currency swaps
 Forward foreign exchange contracts
 Others (Please specify)
Others (Please specify)
Total
34.	Other 	Financial 	Liabilities 	at	Fair	Value	through	Profit	or	Loss
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Held for trading
 Other debt securities
 Due to non-bank customers
 Other financial liabilities
Sub Total
Fair value designated
 Other debt securities
 Due to non-bank customers
 Other financial liabilities
Sub Total
Total
35. Due to Other  Customers
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Total amount due to other customers
Less : Designated at fair value through profit or loss (Note 34)
Total


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  371
a.  Analysis
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
By product
 Demand deposits (current accounts)
 Savings deposits
 Fixed deposits
 Other deposits (Please specify)
Total
By currency
 Sri Lanka rupee
 United State dollar
 Great Britain pound
 Others (Please specify)
Total
36. Other  Borrowings
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Securities sold under repurchase (repo) agreements
Others (Please specify)
Total
37. Debt Securities Issued
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Issued by the bank (Note 32)
Issued by other subsidiaries (Note 40)
Total
Due within 1 year
Due after 1 year
Total


372 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
a. Details of Debt Securities Issued
TypeFace
Value
(Rupees
Millions)Interest
Rate and
Repayment
TermsIssue
DateMaturity
DateBank Group
20XX 20XX 20XX 20XX
Issued by the bank
 (i)
(ii)
Sub Total
Issued by other subsidiaries
 (i)
(ii)
Sub Total
Total
38. Other  Provisions
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Please specify
Total
39. Other  Liabilities
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Sundry creditors
Interest payable
Impairment in respect of off-balance sheet credit exposures (Note 10)
Other payables
Total
40. Due to Subsidiaries
In Rupees Million
Bank
20XX 20XX
Please specify
Total


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  373
41. Subordinated Term Debts
TypeFace
Value
(Rupees
Millions)Interest
Rate and
Repayment
TermsIssue
DateMaturity
DateBank Group
20XX 20XX 20XX 20XX
Issued by the bank
 (i)
(ii)
Sub Total
Issued by other subsidiaries
 (i)
(ii)
Sub Total
Total
Due within 1 year
Due after 1 year
Total
42. Stated Capital / Assigned Capital
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Please specify
Total
43. Statutory Reserve Fund
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Opening balance at  DD MM YY
Transfer during the period
Closing balance at DD MM YY
44. Retained Earnings
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Opening balance at  DD MM YY
Profit for the year
Transfers to other reserves
Dividend
Closing balance at DD MM YY


374 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
45. Other  Reserves
a.  Bank – Current year (20XX)
In Rupees Million
Opening balance
at DD MM YYMovement /
transfersClosing balance
at DD MM YY
General reserve
Revaluation reserve
Available-for-sale reserve
Cash flow hedge reserve
Foreign currency translation reserve
Others (please specify)
Total
b.  Bank – Previous year (20XX)
In Rupees Million
Opening balance
at DD MM YYMovement /
transfersClosing balance
at DD MM YY
General reserve
Revaluation reserve
Available-for-sale reserve
Cash flow hedge reserve
Foreign currency translation reserve
Others (please specify)
Total
c.  Group – Current year (20XX)  [as per 43(a) above]
d.  Group – Previous year (20XX)  [as per 43(b) above]
46. Non-contr olling Interests
In Rupees Million
Group
20XX 20XX
Please specify
Total
47. Contingent Liabilities and Commitments
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Guarantees
Performance bonds
Letters of credit
Other contingent items
Undrawn loan commitments
Other commitments
Total


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  375
48. Related Party Disclosur es
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Please specify
Total
49. Net Assets Value per Ordinary Share
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Please specify
Total
50.	Non-Cash 	items	included	in	Profit	Before	Tax
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Depreciation of property, plant and equipment
Amortisation of leasehold property
Amortisation of intangible assets
Impairment losses on loans and advances
Other impairment
Accretion of discounts and amortisation of premiums of investment securities
Charge for defined benefit plans
Share based payment expense
Others (please specify)
Total
51. Change in Operating Assets
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Change in derivative financial instruments
Net increase in debt securities, treasury bills & bonds and
 equity shares held at fair value through profit or loss
Net increase in loans and advances to banks
Net increase in loans and advances to customers
Change in balances with Central Banks
Change in pre-payments and accrued income
Change in other assets (please specify)
Total


376 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
52. Change in Operating Liabilities
In Rupees Million
Bank Group
20XX 20XX 20XX 20XX
Change in derivative financial instruments
Change in deposits from banks, customers and
debt securities issued
Change in debt securities
Change in financial liabilities designated at
fair value through profit or loss
Change in accruals and deferred income
Change in other liabilities (Please specify)
Total
Other Disclosure Requirements
While complying with the disclosure requirements of all applicable Sri Lanka Accounting
Standards, the following minimum disclosure requirements are applicable for all licensed banks
on	standalone 	basis	and	on	consolidated 	basis	for	the	financial	reporting	periods	beginning 	on	or
after	01.01.2012 	and	shall	be	disclosed 	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 allowance account for credit losses by class of financial assets.
 (v) Information about compound financial instruments with multiple embedded derivatives.
 (vi) Breaches of terms of loan agreements.
1.2 Statement of Compr ehensive Income


(vi) Breaches of terms of loan agreements.
1.2 Statement of Compr ehensive 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) T otal 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.


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  377
 (iii) Amount of impairment losses by class of financial assets.
 (iv) Interest income on impaired financial assets.
1.3 Other  disclosures
1.3.1  Accounting policies for financial instruments
1.3.2  Information on hedge accounting
1.3.3  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 that fair value is determined using level 3
inputs.
 (v) Information if fair value cannot be reliably measured.
2.	 Information 	about	the	nature	and	extent	of	risks	arising	from	financial	instruments
2.1 Qualitative disclosur es
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 disclosur es
2.2.1  Summary of quantitative data about exposure to each risk at the reporting 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 financial 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.


asset.
(c) Information about collateral or other credit enhancements obtained or called.
(d) For other disclosures, refer Banking Act, Direction No. 7 of 2011 on Integrated Risk
Management Framework for Licensed Banks (Section H).
 (ii) Liquidity Risk
(a) A  maturity analysis of financial liabilities.
(b) Description of approach to risk management.
(c) For other disclosures, refer Banking Act, Direction No. 7 of 2011 on Integrated Risk
Management Framework for Licensed Banks (Section H).
 (iii) Market Risk
(a) A  sensitivity analysis of each type of market risk to which the entity is exposed.


378 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
(b) Additional information, if the sensitivity analysis is not representative of the entity's
risk exposure.
(c) For other disclosures, refer Banking Act, Direction No. 7 of 2011 on Integrated Risk
Management Framework for Licensed Banks (Section H).
 (iv) Operational Risk
  Refer Banking Act, Direction No. 7 of 2011 on Integrated Risk Management Framework
for Licensed Banks (Section H).
 (v) Equity risk in the banking book
(a) Qualitative disclosures
• Dif ferentiation 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
• V alue 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
reporting 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
3.1.1  Capital structure
 (i) Qualitative disclosures
  Summary information on the terms and conditions of the main features of all capital
instruments, especially in the case of innovative, complex or hybrid capital instruments.
 (ii) Quantitative disclosures


(ii) Quantitative disclosures
(a) The amount of Tier 1 capital, with separate disclosure of:
• Paid-up share capital / common stock
• Reserves
• Non-controlling interests in the equity of subsidiaries
• Innovative instruments
• Other capital instruments
• Deductions from Tier 1 capital


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  379
(b) The total amount of Tier 2 and Tier 3 capital
(c) Other deductions from capital
(d) T otal eligible capital
3.1.2  Capital adequacy
 (i) Qualitative disclosures
A summary discussion of the bank’s approach to assessing the adequacy of its capital to
support current and future activities.
 (ii) Quantitative disclosures
(a) Capital requirements for credit risk, market risk and operational risk
(b) T otal and Tier 1 capital ratio


380 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Ref. No. : 02  / 05 /006 / 0100  / 002
Bank Supervision Department
06 June 2011
To : CEOs of All Licensed Banks
Dear Sir / Madam,
DISPLAY OF INTEREST RATES, EXCHANGE RATES,
SERVICE CHARGES, FEES AND COMMISSIONS
Reference Circular No. 02/05/006/0100/001 dated 28 October 2003 on display of interest rates
and exchange rates.
To further improve the market efficiency by promoting healthy competition among banks, all
licensed banks are required to expand the disclosures on interest rates of deposits and lending products,
exchange rates and to display details of fees, commissions and other service charges in all branches and
other banking outlets and publish them in banks’ web sites, commencing from 01 August 2011.
Formats for display of above information are enclosed herewith. Banks may further expand the
formats given to suit the products and services of each bank.
Annex I  :  Format for display of interest rates
Annex II  :  Format for display of foreign exchange rates
Annex III  :  Format for display of service char ges, fees and commissions
Yours faithfully,
(Mrs). T M J Y P Fernando
Director of Bank Supervision


Directions, Determinations, and Circulars issued to Licensed Commercial Banks  381
Annex  I
Suggested format for the Display of Interest Rates
DescriptionMin. rate
as at …..Max. rate
as at …..
Interest Rates on Deposits
Savings Deposits
Minor Savings Deposits
Call Deposits
Time Deposits - 1 Year
    * Interest Payable monthly
    * Interest Payable at maturity
NRFC Savings Deposits
    * US Dollar
    * Sterling Pound
    * Euro
    * Any other currencies
NRFC Fixed Deposits - 1 Year
    * US Dollar
    * Sterling Pound
    * Euro
    * Any other currencies
Interest Rates on Advances
Export Bill Finance - Rupee Facilities
Import Bill Finance - Rupee Facilities
Lease Finance
Lending to Small & Medium Scale Industries (SMEs)
Residential Housing
Pawning
US Dollar Loans to Exporters
Overdrafts
    * Permanent
    * Temporary
Personal Loans
Vehicle Loans
Credit Cards
Agricultural Lending
Refinance 	Schemes
  i.  Agriculture & Animal Husbandry
      * Tea Development Project (Revolving fund)- (TDPRF)
      * Agro – Livestock Development Project
      * Any other
 ii.  Small & Medium Enterprises Sector
      * Sushana Loan Scheme
      * Self-Employment Initiative Loan Scheme
      * Any other
iii. Micro Finance Sector
    * Poverty Alleviation Microfinance Project (Revolving Fund)  PAMP Scheme
    * Small Farmers & Landless Credit Project Revolving Fund
    * Any other


382 Directions, Determinations, and Circulars issued to Licensed Commercial Banks
Annex  II
Suggested format for the Display of Foreign Exchange Rates
Exchange RatesRate: Rupees per unit of foreign currency as at ………….
Currency Travelers Cheques Telegraphic TransfersImport
Bill
RatesBuying
RateSelling
RateBuying
RateSelling
RateBuying
RateSelling
Rate
Australian Dollar
Canadian Dollar
Danish Kroner
Euro
Hong Kong Dollar
Japanese Yen
New Zealand Dollar
Norwegian Kroner
Pound Sterling
Singapore Dollar
Swedish Kroner
Swiss Franc
United States Dollar