📈 CBSL Probes Six Banks Over System Failures and Governance Issues

The Central Bank of Sri Lanka (CBSL) initiated specialized spot examinations in 2025 targeting six licensed banks following reports of operational and regulatory lapses. • Core Issues: Investigations focused on core banking system failures, data breaches, and weaknesses in credit governance. • Market & Risk: Regulators scrutinized offshore lending activities and market risk management across five of the involved institutions. • Anti-Money Laundering (AML): CBSL and the Financial Intelligence Unit (FIU) conducted 10 joint and 5 standalone examinations to assess risks related to money laundering (ML) and terrorist financing (TF). • Supervision Details: These spot checks were independent of routine inspections. Additionally, prudential supervision was carried out on 5 Primary Dealer Units within commercial banks. _Note: Based on CBSL Financial Statements and Operations 2025 report; specific bank identities were not disclosed._