RegAlert2023-01-31 | Banking Act Determination No. 01 of 2023Added · Updated
Definition of Liquid Assets Under Sections 86 and 76J(1) of the Banking Act
The Monetary Board of the Central Bank of Sri Lanka has designated qualifying non-financial corporate debt securities and common equity shares as liquid assets for licensed commercial and specialised banks. This determination directly modifies the calculation of their Statutory Liquid Asset Ratio by expanding eligible asset categories beyond traditional holdings. The classification adopts definitions from Banking Act Directions No 01 of 2015, ensuring alignment with established Basel III liquidity standards.
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[Emblem of the Central Bank of Sri Lanka]
MONETARY BOARD
CENTRAL BANK OF SRI LANKA
31 January 2023 | BANKING ACT DETERMINATION | No. 01 of 2023
DEFINITION OF LIQUID ASSETS UNDER SECTIONS 86 AND 76J (1) OF THE BANKING ACT, NO. 30 OF 1988, AS AMENDED
In terms of Sections 86 and 76J(1) of the Banking Act, No. 30 of 1988, the Monetary Board has determined below mentioned assets shall be treated as liquid assets in the computation of the Statutory Liquid Asset Ratio of the Licensed Commercial Banks and Licensed Specialised Banks, respectively:
(i) Qualifying non-financial corporate debt securities; and (ii) Qualifying non-financial common equity shares.
(i) and (ii) are as defined in Banking Act Directions No 01 of 2015 on Liquidity Coverage Ratio under Basel III Liquidity Standards for Licensed Commercial Banks and Licensed Specialised Banks.
[Signature]
Dr. P Nandalal Weerasinghe
Chairman of the Monetary Board and
Governor of the Central Bank of Sri Lanka
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Source: Central Bank of Sri Lanka — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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