Regulatory Alerts2019-09-05 | Circular No. 35/03/021/0013/002Operating Instructions on Liquidity Support Facility for Standalone Primary Dealers under Open Market Operations
The Central Bank of Sri Lanka issued this circular to introduce a Liquidity Support Facility allowing Standalone Primary Dealers to borrow overnight funds via reverse repurchase transactions. The document establishes detailed operational procedures for electronic bidding, auction floor rates, security collateral requirements, and settlement timelines. It further defines default consequences, including damage payments and potential suspension, for failures to honor bids or meet maturity obligations.
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