Financial System Oversight Committee

The Financial System Oversight Committee (FSOC) is a statutory committee that was set up by the Central Bank of Sri Lanka Act No. 16 of 2023 (CBA), with the objective of contributing to secure the stability of the financial system in line with the macroprudential policy.

Powers, duties and functions of FSOC:

1. Examine the macroprudential policy to mitigate building-up of identified systemic risks affecting the financial system.
2. Coordinate the implementation of macroprudential policy.
3. Upon a proposal of the Central Bank under Section 69 of CBA, issue recommendations to relevant public authorities and financial sector authorities on corrective action in response to the risks identified and, making those recommendations public, if it deems necessary.
4. Monitor compliance with its recommendations.

Composition of the FSOC is as follows:

Chairperson

Governor of the Central Bank of Sri Lanka (CBSL)

Members

The Deputy Governor of the Central Bank in charge of macroprudential policy
The Deputy Governor of the Central Bank in charge of regulation and supervision
A Deputy Secretary to the Treasury nominated by the Secretary to the Treasury
The Chief Executive Officer of the Insurance Regulatory Commission of Sri Lanka
The Chief Executive Officer of the Securities and Exchange Commission of Sri Lanka
Another person who may be appointed by the Governing Board of the Central Bank

The FSOC may invite representatives from any other public authority to the meetings of the Committee to express their opinions.

Secretariat of the FSOC

Macroprudential Surveillance Department

FSOC will meet at least on a quarterly basis. Any special meeting may be convened by the Chairperson or at the written request of at least two voting members.