Regulatory Alerts2014-02-17 | 02/17/550/0016/001Definition of Liquid Assets - LCBs
The Central Bank of Sri Lanka has determined that Standing Deposit Facility balances held by Licensed Commercial Banks are classified as liquid assets under Section 86 of the Banking Act. This directive was issued by the Director of Bank Supervision to formally recognize these balances as eligible for statutory liquidity requirements. Licensed commercial banks are required to report the eligible value of these facilities under code number 4.1.2.3.0.0 in their monthly Statutory Liquid Assets Ratio returns.
# ස්වාධීන ශ්රී ලංකාව
## අධිකාරික ප්රදේශීය වාර්තාව
### CENTRAL BANK OF SRI LANKA
**බැංකු පරීක්ෂණ අංශය**
**වාර්තාව ප්රධානාංගය දිරිගැන්වීම් සඳහා**
**Bank Supervision Department**
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**Ref: 02/17/550/0016/001**
**17 February 2014**
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**To: The Chief Executive Officers of Licensed Commercial Banks**
Dear Sir/Madam
## Definition of Liquid Assets under Section 86 of the Banking Act No. 30 of 1988, as Amended
In terms of section 21 (1) and the definition of "liquid assets" in paragraph (g) of section 86 of the Banking Act, No. 30 of 1988, as amended, the Monetary Board has determined that Standing Deposit Facility balances held by Licensed Commercial Banks with the Central Bank of Sri Lanka are liquid assets.
2. Licensed commercial banks shall report the eligible value of Standing Deposit Facility under code number 4.1.2.3.0.0 of the monthly web based return on Statutory Liquid Assets Ratio for Domestic Banking Unit (BSD-MF-04-LD).
Yours faithfully
*(Mrs.) T M J Y P Fernando*
**Director of Bank Supervision**
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**6 වැනි මාරු, අංක 30, ජනාධිපති වැත්ත, කොළඹ 01, ශ්රී ලංකාව**
**6 සුප්රීම් මාරු, අංක 30 අංශාධිපති මහාවැත්ත, කොළඹ 01, ශ්රී ලංකාව**
**Level 6, No. 30, Janadhipathi Mawatha, Colombo 1**
**P. O. Box 590, Colombo 01, Sri Lanka.**
**94 11 2477100/659**
**94 11 2477711**
**banksup@cbsl.lk**
**www.cbsl.gov.lk**
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