Central Bank of Sri Lanka Act 2023 · As enacted · Part X · Macroprudential Authority
64. Macroprudential powers of the Central Bank
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
The Central Bank, as the macroprudential authority may-
monitor, identify or assess the build-up of risks and vulnerabilities in the financial system;
request, collect, compile, analyze or publish data, information and statistics in order to achieve the macroprudential objectives;
conduct stress testing and simulation exercises;
designate systemically important financial sector participants under section 68;
adopt and apply the macroprudential instruments indicated in section 66 to financial institutions regulated and supervised by the Central Bank;
adopt and apply enhanced macroprudential oversight to systemically important financial sector participants;
identify gaps in regulation that could pose systemic risks;
formulate strategies and policies to mitigate or address identified systemic risks;
monitor domestic and international financial regulatory developments and advise on legislative or regulatory measures that will enhance financial stability;
develop and propose prudential standards to be applied by relevant financial sector authorities in respect of financial sector participants regulated and supervised by such authorities;
facilitate information sharing and cooperation among relevant financial sector authorities; and
propose to the Financial System Oversight
Committee the recommendations to be issued to public or financial sector authorities.
The Governing Board shall meet at least quarterly for the purpose of deciding any matter in relation to macroprudential authority under this section.
The Central Bank shall, without prejudice to its autonomy, communicate to the Financial System Oversight
Committee, such information as may be necessary for the exercise, performance and discharge of powers, duties and functions under this section.
Part XI
Financial System Oversight Committee
Part XII
Information Exchange with Financial Sector Authorities
Part XIII
Statistics and Information
Part XIV
Relationship with the Parliament, the Government and the Public
Part XV
Credit Operations
Part XVI
Financial Provisions
Part XVII
Internal and External Audits
Part XVIII
General Provisions
Part XIX