Regulatory Alerts2020-04-21 | Operating Instruction No. 35/01/005/0007/16Reserve Requirement: Daily Minimum Deposit
The Monetary Board of the Central Bank of Sri Lanka has amended Regulation D to require commercial banks to hold a minimum daily deposit equal to 20 percent of their required reserves. This directive, issued under the Monetary Law Act, supersedes previous thresholds established in earlier operating instructions. The new requirement became effective for the reserve maintenance period commencing on 16 April 2020.
` OPERATING INSTRUCTIONS No: 35/01/005/0007/16 17 April 2020 To: CEOs of All Licensed Commercial Banks Reserve Requirement : Daily Minimum Deposit Your attention is invited to the notification made by the Monetary Board of the Central Bank of Sri Lanka under Sections 10(c), 93, 94, 96 and 97 of the Monetary Law Act (Chapter 422 of Ceylon Legislative Enactments), as amended and the Regulation “D” published in the Gazette Extraordinary of the Democratic Socialist Republic of Sri Lanka No. 1805/39 of 12 April 2013 as amended, in terms of which all commercial banks are required to hold minimum daily deposit in the Central Bank 2. For the purpose of Regulation 6 of Regulation “D”, the Monetary Board of the Central Bank of Sri Lanka has determined that the minimum daily deposit required to be held by a commercial bank to be Twenty (20) per centum of the required reserves on any given day. 3. The above amendment is effective from the current reserve maintenance period commencing from 16 April 2020. All other instructions contained in our Operating Instructions No. 35/01/005/0007/06 of 22 April, 2013 as amended from time to time will continue to apply. C A Abeysinghe Director / Domestic Operations