Accordingly, we expect to enhance the bank examination methodology to 19  focus on the efficiency, effectiveness  2014 with a view to further  and sustainability of individual banks and  strengthening the resilience of licensed  the banking sector, based on the Bank  banks. We have already issued Directions  Sustainability Risk Index (BSRI). on the Basel III Liquidity Coverage Ratio  Accordingly, amendments will be  in April 2015.  introduced to the existing risk-based supervision framework based on a mix of quantitative and qualitative indicators to enhance focus on sustainability and operational efficiency of banks. We will conduct the pilot run of the Risk Index on large banks during  We have just issued the Direction on Basel III Minimum Capital Requirements for implementation on a staggered basis, commencing 01 July 2017, and to be fully implemented by 01 January 2019 in line with the international timeline. the first quarter of 2017 and  With a view to creating a more resilient  subsequently, the index will be extended  banking sector, we expect banks to  to the other segments of the banking  maintain a stable funding profile. sector. Accordingly, we plan to introduce the  In 2018, the Risk Index will be incorporated to all examination reports and we intend to assign a supervisory rating, based on this index. By 2019, a comprehensive pre-risk assessment will be conducted for all banks and a riskbased examination plan will be formulated.
the government on organic  In line with the international appetite to  agriculture, mainly due to the  promote green financing, the Central  multiple benefits that accrue from it,  Bank has also joined the Sustainable  the Central Bank expects to promote  Banking Network (SBN) of the  commercial scale organic agriculture  International Finance Corporation (IFC),  and dairy entrepreneurs through the  which is a knowledge and capacity  establishment of formal agribusiness societies and multi-stakeholder enterprises. building platform for financial regulators and banking associations of emerging markets on sustainable finance. As a   A Loan Scheme for Promoting Rooftop  member of the SBN, we would focus on  Solar Power Generation: A new loan  sustainable banking practices to help  scheme, funded by ADB, will be  banks to effectively manage  Central Bank of Sri Lanka – ROAD MAP 2017  31  environmental and social risks in the  finance, with the support of IFC, we  projects they finance and support  intend to conduct a workshop for the  businesses that are greener, climate  senior staff of banking institutions in Sri  friendly and socially inclusive. As an  Lanka during the first quarter of 2017.  important step towards sustainable  Central Bank of Sri Lanka – ROAD MAP 2017  32  6.