SEC invites applications for new credit rating agencies

Tuesday, 7 July 2026 04:19 - - {{hitsCtrl.values.hits}}

The Securities and Exchange Commission of Sri Lanka (SEC) has invited eligible institutions to apply for licences to operate as credit rating agencies, seeking to expand the country’s market intermediary framework and strengthen the capital market’s credit assessment infrastructure.

The invitation, issued under Section 188 of the Securities and Exchange Commission of Sri Lanka Act, No. 19 of 2021, defines a credit rating agency as a body corporate engaged in assessing the creditworthiness of issuers and securities and providing independent credit opinions on issuers or specific issues of securities.

Sri Lanka currently has two SEC-licenced credit rating agencies, Fitch Ratings Lanka Ltd., and Lanka Rating Agency Ltd., (LRA), which provide ratings for banks, finance companies, corporates, and debt securities in the domestic market.

According to the SEC, applicants must be capable of providing independent, objective, and credible assessments of the creditworthiness of issuers and securities to support informed investment decisions, enhance market transparency, and strengthen risk management and market discipline.

The regulator said prospective applicants must either be promoted by a foreign credit rating agency that is duly licenced or registered in its home jurisdiction with a minimum of five years’ experience in rating entities or securities, or by a bank licenced by the CBSL under the Banking Act that has at least five years’ experience in rating entities or securities.

Applicants must also comply with all applicable eligibility, financial, governance, operational, and regulatory requirements stipulated under the SEC Act, No. 19 of 2021, as well as the SEC’s Rules and Directives governing credit rating agencies.

The SEC said the initiative reflects the recognised need for additional credit rating agencies in Sri Lanka and forms part of its licencing framework for market intermediaries under the SEC Act.

Applications will be accepted until 5 October 2026, with application forms available through the SEC’s website.