CENTRAL BANK OF SRI LANKA

Domestic Operations Department

OPERATING INSTRUCTIONS NO. 35/01/005/0007/12

12 October, 2018

To: All Licensed Commercial Banks

RESERVE REQUIREMENTS

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 by Regulation “D” published in the Gazette Extraordinary of the Democratic Socialist Republic of Sri Lanka No. 2092/62 of 12 October 2018 on the above subject.

A. The Licensed Commercial Banks (LCBs) are hereby informed that in accordance with the said notification, they shall maintain minimum reserve amounting to hundred per centum (100 %) of margin against

a. Letters of credit specified in -
(i) Circular No. 35/01/005/0010/20 dated 19 September 2018 on ‘Margin Requirements against Letters of Credit for importation of Motor Vehicles’ or (ii) Circular No. 35/01/005/0010/21 dated 29 September 2018 on ‘Margin Requirements against Letters of Credit for importation of Motor Vehicles and Non-Essential Consumer Goods’ and

b. Imports on Document against Acceptance (DA) Terms specified in Circular No. 02 of 2018 dated 11 October 2018 issued by the Bank Supervision Department, as the case may be.

B. Schedule A of Operating Instructions No. 35/01/005/007/11 of 01 October 2018 is replaced by attached ‘Schedule A’.

The above amendments will take effect from 16 October 2018. All other instructions contained in our Operating Instructions Nos. 35/01/005/007/06 and 35/01/005/007/07 of 22 April, 2013 as amended from time to time will continue to apply.

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Director / Domestic Operations

7 වැනි සැලැස්ම, 2 වැනි තැටිය
Level 7, Tower 2

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```markdown  
# SCHEDULE A

## FORM OF REPORT

### REPORT OF DAILY AVERAGE DEPOSIT LIABILITIES

**Name of the Bank**: ..................................................................

**For the period from** (.................................) **to** (.................................)

| Date | Date |  
|------|------|

**To: Director,**  
Domestic Operations Department,  
Central Bank of Sri Lanka  
Colombo 01

The average amounts of deposit liabilities reported below are based on the deposit balances shown by the books of the Banks at the close of business of each day of the period specified above.

| (i) Demand Deposits | (ii) Time and Savings Deposits | (iii) Margins against Letters of Credit/DA Terms | (iv) All other Deposit Liabilities¹ |  
|---------------------|-------------------------------|-----------------------------------------------|-------------------------------------|  
|                     |                               |                                               |                                     |

¹ In the case of Certificate of Deposits the amount declared should be the paid up value.

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# REQUIRED RESERVES

For the period commencing .......................................................

| Item | In Sri Lankan Rupees |  
|------|----------------------|  
| 1. 100% of Average daily total Margins against<br>a. Letters of Credit specified under<br>(i) Circular No. 35/01/005/0010/20 dated 19th September 2018 on ‘Margin Requirements against Letters of Credit for importation of Motor Vehicles’ or<br>(ii) Circular No. 35/01/005/0010/21 dated 29 September 2018 on ‘Margin Requirements against Letters of Credit for importation of Motor Vehicles and Non-Essential Consumer Goods’<br>and<br>b. Imports on Document against Acceptance (DA) Terms specified in Circular No. 02 of 2018 dated 11 October 2018<br>as the case may be | |  
| 2. 7.5% of Average daily total Rupee Deposit Liabilities excluding (1) above | |  
| 3. Average of Sri Lanka Currency Notes and Coins held over and above 2% of average deposit liabilities covered in 1. and 2., but not exceeding 4% | |  
| 4. Total reserves required to be maintained over the reserve maintenance period (1+2+3) | |

We/I hereby certify that the above statement is correct and in accordance with the book of this bank and that the figures shown above are in accordance with the regulations prescribed by the Monetary Board of the Central Bank of Sri Lanka for the purpose.

**Date**: ...................................................  
**Official Signature**: ...................................................

**Note –**  
(a) Deposits and placements made by any institution other than licensed commercial banks, shall be accounted for maintenance of required reserves at prescribed ratios. (b) All amounts should be shown to the nearest rupee.