📈 SEC Invites Applications for New Credit Rating Agencies

The Securities and Exchange Commission of Sri Lanka (SEC) has opened applications for new credit rating agencies under the SEC Act No. 19 of 2021 to strengthen the capital market's credit assessment infrastructure and enhance market transparency. • Current Market: Sri Lanka currently has only two licensed agencies—Fitch Ratings Lanka Ltd. and Lanka Rating Agency Ltd. (LRA)—providing domestic ratings for banks, finance companies, corporates, and debt securities. • Eligibility Criteria: Applicants must be promoted by either a licensed foreign credit rating agency with minimum 5 years of experience, or a CBSL-licensed commercial bank with at least 5 years of experience in rating entities/securities. • Regulatory Goals: The initiative aims to support informed investment decisions, improve risk management, and foster market discipline by introducing independent, objective, and credible rating alternatives. • Timeline: Applications will be accepted through the SEC website until October 5, 2026.