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srilawsby aturio
As enacted
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Part X · Macroprudential Authority

66. Macroprudential instruments

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

In order to mitigate or eliminate identified systemic risks, the Central Bank shall issue qualitative and quantitative macroprudential instruments, which include –

(a)

countercyclical capital buffers;

(b)

capital conservation buffer;

(c)

dynamic provisioning;

(d)

caps on leverage ratios;

(e)

caps on interest rates and credit growth;

(f)

sectoral capital requirements;

(g)

caps on loan-to-value ratios;

(h)

caps on debt-service-to income ratio;

(i)

caps on loan-to-income and debt-to-income ratios;

(j)

exposure caps;

(k)

liquidity tools;

(l)

capital surcharges;

(m)

liquidity surcharges;

(n)

control of inter-linkages in funding or derivatives markets; and

(o)

margin deposit requirements.

(2)

The Central Bank may apply macroprudential instruments in respect of any financial sector participant or class of such financial sector participants regulated and supervised by the Central Bank.

Read on from s 67

Part XI

Financial System Oversight Committee

Read on from Part XI

Part XII

Information Exchange with Financial Sector Authorities

Read on from Part XII

Part XIII

Statistics and Information

Read on from Part XIII

Part XIV

Relationship with the Parliament, the Government and the Public

Read on from Part XIV

Part XV

Credit Operations

Read on from Part XV

Part XVI

Financial Provisions

Read on from Part XVI

Part XVII

Internal and External Audits

Read on from Part XVII

Part XVIII

General Provisions

Read on from Part XVIII

Part XIX

Repeals and Savings

Read on from Part XIX