## Sri Lanka: Technical Assistance Report-Central Bank Risk Management

_Technical Assistance Reports, October 4, 2024_

## Source details

**Canonical URL:** [Sri Lanka: Technical Assistance Report-Central Bank Risk Management](https://www.imf.org/en/publications/technical-assistance-reports/issues/2024/10/04/sri-lanka-technical-assistance-report-central-bank-risk-management-555725)

## Other formats

- [Markdown version](/en/publications/technical-assistance-reports/issues/2024/10/04/sri-lanka-technical-assistance-report-central-bank-risk-management-555725/index.md)
- [Structured JSON version](/en/publications/technical-assistance-reports/issues/2024/10/04/sri-lanka-technical-assistance-report-central-bank-risk-management-555725/index.json)
- [Bundle manifest](/en/publications/technical-assistance-reports/issues/2024/10/04/sri-lanka-technical-assistance-report-central-bank-risk-management-555725/bundle-manifest.json)

## Bibliographic details
- Published: October 4, 2024
- Series: Technical Assistance Reports
- DOI: https://doi.org/10.5089/9798400289934.019

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### Summary / Key findings
- Since 2015, the Central Bank of Sri Lanka (CBSL) has enhanced its risk management through a comprehensive framework and is aiming for an Enterprise Risk Management system.
- Establishment of the Banking Risk Oversight Committee (BROC) and the Non-Financial Risk Management Committee (NFRMC) has fostered higher-level risk discussions.
- CBSL is focusing on:
  - strengthening leadership's engagement in risk management;
  - adopting a risk appetite statement;
  - ensuring targeted training;
  - empowering the risk management function;
  - implementing the 3 Lines Model for clear role delineation;
  - defining risk tolerance levels with Key Risk Indicators (KRIs).

### High-level objectives of IMF engagement
- Embed robust risk management practices deeply within the organization.
- Align the CBSL’s strategic goals with its risk management efforts.
- Enhance decision-making processes to improve efficiency and effectiveness.
- Ensure all risk management improvements are in line with the CBSL's legal mandate.

### Implementation priorities and reforms
- Institutionalize Enterprise Risk Management across CBSL operations.
- Strengthen governance by increasing leadership engagement and clarifying roles via the 3 Lines Model.
- Develop and adopt a formal risk appetite statement and defined risk tolerance levels.
- Define, monitor, and report Key Risk Indicators (KRIs) to signal emerging risks and track risk tolerance breaches.
- Provide targeted training to build risk-awareness and capability across relevant units.
- Empower the dedicated risk management function to operate with mandate, independence, and resources consistent with its role.

### Subject tags and keywords (as listed)
- Cyber risk
- Financial regulation and supervision
- Operational risk
- Technology
- CBSL department
- Cyber risk
- deputy governor
- IMF executive director
- IMF HQ
- Maghreb
- MCM Department
- Operational risk

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## Content in this bundle

- **tarea2024083-print-pdf - Preface**
  - [tarea2024083-print-pdf - Preface (Markdown version)](/-/media/files/publications/tar/2024/english/tarea2024083-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [tarea2024083-print-pdf - Preface (PDF)](/-/media/files/publications/tar/2024/english/tarea2024083-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/technical-assistance-reports/issues/2024/10/04/sri-lanka-technical-assistance-report-central-bank-risk-management-555725_