The Central Bank (CB) ordered the local banks to differ cash dividend payments and foreign banks to differ profit repatriation until their 2020 accounts have been audited.
“Every licensed commercial bank incorporated or established in Sri Lanka shall defer payment of cash dividends until the financial statements for the year 2020 are finalized and audited by its External Auditor,” the CB stated on Tuesday issuing a direction to the banking sector.
On a similar note, the CB also issued directions to all licensed commercial banks incorporated outside Sri Lanka to defer repatriation of profits not already declared for years 2019 and 2020 until the financial statements for the year 2020 are finalized and audited by their External Auditors.
Last year, in a similar direction, the CB halted local banks from declaring dividends and foreign banks from repatriating profits until December 2020.
Further, the directions have also been issued to stop buyback shares, stop raising salaries of executives and directors until June 2021.