Regulatory Alerts2021-03-18 | Directions No. 4 of 2021Investments in Sri Lanka International Sovereign Bonds by Licensed Commercial Banks and National Savings Bank
The Central Bank of Sri Lanka directs licensed commercial banks and the National Savings Bank to suspend purchases of Sri Lanka International Sovereign Bonds. The suspension takes effect on 23 March 2021 and remains in force until 9 April 2021. This measure aims to alleviate exchange rate pressure and mitigate potential foreign exchange outflows that could impact banks' risk management.
MONETARY BOARD CENTRAL BANK OF SRI LANKA
18 March 2021 | BANKING ACT DIRECTIONS | No. 04 of 2021
INVESTMENTS IN SRI LANKA INTERNATIONAL SOVEREIGN BONDS BY LICENSED COMMERCIAL BANKS AND NATIONAL SAVINGS BANK
Issued in terms of the powers conferred by Sections 46(1) and 76(J)(1) of the Banking Act No. 30 of 1988, as amended.
The Central Bank of Sri Lanka with a view to easing pressure on the exchange rate and considering the substantial amount of possible/potential outflow of foreign exchange by banks and its impact on banks’ risk management, licensed commercial banks and National Savings Bank are hereby informed to suspend the purchase of Sri Lanka International Sovereign Bonds with effect from 23 March 2021 until 09 April 2021.
(Signature)
Prof. W D Lakshman Chairman of the Monetary Board and Governor of the Central Bank of Sri Lanka