CB recognises LRA as credit rating agency

Financial sector regulator, the Central Bank of Sri Lanka (CBSL), announced recently that it had recognised domestic credit rating entity, Lanka Rating Agency Ltd (LRA) as an acceptable external credit assessment institution. 

The CBSL said that the ratings are acceptable for the purpose of Banking Act Directions No. 01 of 2016, on Capital Requirements Under Basel III for Licensed Commercial Banks and Licensed Specialised Banks.

The approval is also for other related regulatory requirements pertaining to licensed commercial banks and licensed specialised banks, the CBSL said in a statement to the media yesterday. 

LRA was registered in March 2021 as a credit rating agency in Sri Lanka, under the Securities and Exchange Commission (SEC) of Sri Lanka. 

Pakistan Credit Rating Agency (PACRA) is a shareholder of LRA and provides technical assistance for ratings. 
The rating committee members of LRA comprise of professionals from Sri Lanka and Pakistan. According to the LRA corporate website, the entity has a separate compliance officer to ensure that LRA is in compliance with international standards.