CENTRAL BANK OF SRI LANKA

Domestic Operations Department

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OPERATING INSTRUCTIONS No: 35/01/005/0007/17

17 June 2020

To: CEOs of 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 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.

2. All Licensed Commercial Banks (LCBs) are hereby informed that in accordance with the said notification, they should maintain reserves against deposit liabilities denominated in Sri Lankan Rupees at an amount equal to two per centum (2.00%) of the total of such deposit liabilities.

3. LCBs may maintain an amount over and above two per centum of the average deposit liabilities specified in paragraph 5 of the Operating Instructions No. 35/01/005/0007/06 of 22 April 2013, in the form of Sri Lanka currency notes and coins. However, only one per centum, over and above the two per centum of the currency notes and coins shall be considered as a part of its reserves. Such amount of currency notes and coins shall be the average holding of Sri Lanka currency notes and coins calculated for the respective computation period.

4. Schedule A of Operating Instructions No. 35/01/005/0007/15 of 17 March 2020 is replaced by attached 'Schedule A'.

5. The above amendment is effective from the current reserve maintenance period commencing from 16 June 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.

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C A Abeysinghe
Director/ Domestic Operations

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7 වැනි සැල, 2 වැනි කුරුළු
කොටු 30, ජනාධිපති වැවා
පෝ. බොックス 590, කොළඹ 01, ශ්රී ලංකාව
+94 112 477036
+94 112 346287
ddod@cbsl.lk
www.cbsl.gov.lk

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SCHEDULE A

FORM OF REPORT

REPORT OF DAILY AVERAGE RUPEE DEPOSIT LIABILITIES

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

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

DateDate

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 Liabilities

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 19 September 2018 on 'Margin Requirements against Letters of Credit for importation of Motor Vehicles' or<br>(ii) Circular No. 35101/005/0010/21 dated 29 September 2018 on 'Margin Requirements against Letters of Credit for importation of Motor Vehicles and Non-Essential Consumer Goods' and<br>b. Imports on Document against Acceptance (DA) Terms specified in Circular No. 02 of 2018 dated 11 October 2018 as the case may be
2. 2% 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 3%
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.