CBSL and SLAASMB sign MoU to sharpen scrutiny on banking and financial institutions

Wednesday, 3 December 2025 04:29 - - {{hitsCtrl.values.hits}}

The Central Bank of Sri Lanka (CBSL) and the Sri Lanka Accounting and Auditing Standards Monitoring Board (SLAASMB) have formally executed a Memorandum of Understanding (MoU) to establish a comprehensive framework for coordination and information sharing in the oversight of Sri Lanka’s banking and financial institutions.

This collaboration is strategically vital given the distinct regulatory mandates of the two institutions: CBSL acts as the prudential regulator for banking and financial institutions, primarily focused on monitoring their operational activities and ensuring their stability, while SLAASMB functions as the regulatory body for inspecting the financial statements of Specified Business Entities. Its core responsibility is to ensure that these statements are prepared strictly in accordance with the Sri Lanka Accounting Standards and that their audits are conducted by auditors in compliance with the Sri Lanka Auditing Standards.

The systematic sharing of information between CBSL and SLAASMB is a key step that significantly strengthens the regulatory activities of both institutions, leading to enhanced financial stability and greater accountability within the financial sector.

The MoU was officially signed on 1 December, by Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, and SLAASMB Director General Shantha Halloluwa in the presence of officials from both institutions.