Regulatory Alerts2019-09-05 | Circular No. 35/03/016/007/004Outright Auctions under Open Market Operations
The Central Bank of Sri Lanka amended its Consolidated Operating Instructions to permit outright auctions of both Treasury bills and Treasury bonds effective 06 September 2019. The directive specifies that Treasury bill auction announcements must be made by 09:30 on the auction day or one business day in advance, while Treasury bond announcements require at least three working days' notice. Both announcement types must detail the auction type, security face value, maturity, and settlement date, with settlement occurring on the following business day.
ශ්රී ලංකා මහ බැංකුව இலங்கை மத்திய வங்கி CENTRAL BANK OF SRI LANKA
දේශීය මෙහෙයුම් කටයුතු දෙපාර්තමේන්තුව உள்நாட்டு தொழிற்பாடுகள் திணைக்களம் Domestic Operations Department
Circular No: 35/03/016/007/004
05 September 2019
To: CEOs of All Participating Institutions
Outright Auctions under Open Market Operations
With effect from 06 September 2019, both Treasury bills and Treasury bonds will be accepted for outright auctions (sales/purchases) conducted by the Central Bank of Sri Lanka (CBSL) under Open Market Operations (OMOs).
Accordingly, the Section 83.0 of the Circular No. 35/03/016/007/001 on Consolidated Operating Instructions (COI) on Market Operations dated 26 October 2016 is amended as follows with effect from 06 September 2019.
83.0
(a) Auction announcement under Treasury bills
The CBSL shall announce the decision to conduct an outright auction by 09:30 hours on the auction day or one business day in advance to the auction date. The announcement shall include the type of auction on offer (outright sale or purchase), amount offered (the face value of the securities), maturity date, days to maturity, auction date and settlement date. The settlement date for outright transactions will be the following business day.
(b) Auction announcement under Treasury bonds
The CBSL shall announce the decision to conduct outright auction at least three working days prior to the auction date. The announcement shall include the type of auction on offer (outright sale or purchase), amount offered (the face value of the securities), maturity date, days to maturity, auction date and settlement date. The settlement date for outright transactions will be the following business day.
[Signature]
Director/ Domestic Operations
7 වන මහල, 2 වන කුළුණ අංක 30, ජනාධිපති මාවත තැ.පෙ. 590, කොළඹ 01, ශ්රී ලංකාව 📞 +94 112 477036 📠 +94 112 346287 📧 ddod@cbsl.lk 🌐 www.cbsl.gov.lk
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