The Governor of the Central Bank of Sri Lanka and Chairman of its Board of Governors, Dr. Nandalal Weerasinghe, has issued an amendment to the Banking Act No. 05 of 2024, further strengthening corporate governance measures for licensed banks.
The new order introduces a provision that directors representing shareholders who have obtained voting rights in violation of Section 12(1C) of the Banking Act shall refrain from participating in or voting on the appointment of independent directors.
The CBSL emphasized that the order, which comes into effect immediately, is part of broader efforts to uphold governance standards, ensure regulatory compliance and protect the stability of the banking sector in Sri Lanka.
