Definition of Liquid Assets under Section 86 of the Banking Act, No. 30 of 1988

ffiF,ffiiilir"l*n Oco4 q6re5'r oqerboo@dQO eunirdl GLo$unrieoou$ pileoour6eenLb Bank Supervision Department Ref. : 02117 1500/0540/001 O\ December 2013 To: 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 Interms of Item (g) of the definition of "liquid assets" under section 86 of the BankingAct, No. 30 of 1988, as amended, the Monetary Board has determined that investments in International Sovereign Bonds issued by the Government of Sri Lanka shall be treated as liquid assets. 2. Licensed commercial banks shall: (, take into account the daily market value of their investment in the Intemational Sovereign Bonds in computing their liquid assets ratio for the purpose of complying with the provisions of section 21 of the Banking Act; and (ii) repofi the eligible value of the investments in International Sovereign Bonds under: (a) code number 4.I.2.4.0.0 of the monthly web based return on Statutory Liquid Assets Ratio for Domestic Banking Unit (BSD-MF-04-LD); and (b) code number 4.2.2.4.0.0 of the monthly web based return on Statutory Liquid Assets Ratio for Off-shore Banking Unit (BSD-MF-04-LF), as the case may be. Yours faithfully (Mrs.)TMJYPFemando Director of Bank Supervision 6 O(D @(,g, qoro 30, d{rlAcaS @)OeD, o.. @E).59O, @loleo Ol, @ goo:O I ga'n zqnfiorcsg V sa r 6 €|gLb ong, @eu. :O uor$u$ ormgiog Getr(grbq 1 p. Gu. @a1.590, Gsnlgrirq Ol. O6)rdlos 11 K banksup@cbsl,lk kvd 6, N0.30, Janadhlpathl Mawatha, Colombo 1 P.0. Box.590, Colombo 01, Sri Lanka. www.cbsl.(ov.lk