Regulatory Alerts2020-12-23 | Banking Act Direction No. 12 of 2020Investments in Sri Lanka International Sovereign Bonds by Licensed Commercial Banks and National Savings Bank
The Central Bank of Sri Lanka has directed licensed commercial banks and the National Savings Bank to suspend purchases of Sri Lanka International Sovereign Bonds for three months, effective immediately. This measure addresses undue pressure on the domestic foreign exchange market resulting from banks utilizing balance of payments inflows to fund substantial ISB acquisitions. The directive simultaneously withdraws Banking Act Directions No. 11 of 2020 and operates under Sections 46(1) and 76(1) of the Banking Act No. 30 of 1988.
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