Regulatory Alerts2013-12-04 | 02/17/500/0540/001Permitting Licensed Commercial Banks to Invest in International Sovereign Bonds Issued by the Government of Sri Lanka
The Bank Supervision Department of the Central Bank of Sri Lanka has authorized off-shore banking units of licensed commercial banks to invest in International Sovereign Bonds issued by the Government of Sri Lanka. This directive, enacted under Section 25 of the Banking Act No. 30 of 1988 with the concurrence of the Minister of Finance and Planning, explicitly permits these investments within the secondary market. The authorization formally expands the permissible investment portfolio of licensed commercial banks, enabling them to allocate capital to sovereign debt instruments without regulatory restriction.
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