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.
ffieF,ffiiil[]; Oooq qdrre6r oqerboo@do2O ounirdl GLogrunrteoor$ pleoour6oor6 Bank Supervision Department Ref. :021171500105401001 To: Chief Executive Officers of Licensed Commercial Banks 6 OeD @t'e, qclo 30, crerlaeS @lorD, tDa. oc, . 59O, @!'l€@ Ol, 6 ecrDto 6 e5Lb onq, go. 30 eonplupfl Dtrilfi@E oanqgLbq I p. Gu. @m.500, GsrT@6tl 01, O6oritos oft December 2013 kvel 6, No.30, Janadhipathi Mawatha, Colombo 1 P.0. Box' 590, Colombo 01, Sri Lanka. Dear Sir/Madam Permitting licensed commercial banks to invest in International Sovereign Bonds issued by the Government of Sri Lanka In tetms of section 25 of the Banking Ac| No. 30 of 1988, as amended, the Monetary Board with the concufl'ence of the Minister of Finance and Planning has authorised off-shore banking units of licensed commercial banks to invest in International Sovereign Bonds issued by the Government of Sri Lanka, in the secondary market. Yours faithfully (Mrs.)TMJYPFernando Director of Bank Supervision I sd't't zan'toorcss lJ sa fi 2477711 banksup@cbsl;lk ilflIiilfitilliililililfl ililfiflililil flilfiltilililliilflililfl ilflllllillfl