Regulatory Alerts2021-06-16 | Banking Act Direction No. 10 of 2021Investments in Sri Lanka International Sovereign Bonds by Licensed Commercial Banks and National Savings Bank
The Central Bank of Sri Lanka has revoked its April 2021 direction and issued Banking Act Direction No. 10 of 2021 to permit licensed commercial banks and the National Savings Bank to purchase Sri Lanka International Sovereign Bonds in the secondary market. Regulated institutions must fund these purchases exclusively through verified fresh overseas borrowings and allocate exactly fifty percent of the capital to Sri Lanka Development Bonds alongside international sovereign bonds. Entities are required to implement maturity mismatch mitigation measures and submit detailed investment records, including dates, ISINs, and amounts, to the Director of Bank Supervision and the Public Debt Department.
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