Regulatory Alerts2026-05-25 | Circular No. 04 of 2026Added · Updated
Implementation of risk mitigation mechanisms for Common Electronic Fund Transfer Switch and Common ATM Switch with the discontinuation of the Liability Manager Mechanism
The Central Bank of Sri Lanka's Payments and Settlements Department issued Circular No. 04 of 2026, effective June 1, 2026, to mitigate credit risk in Common Electronic Fund Transfer Switch (CEFTS) and Common ATM Switch (CAS) operations by replacing the Liability Manager Mechanism. It introduces Net Debit Caps (NDCs) for all CEFTS and CAS members, which they must assign based on expected net obligations, with minimum guidance from CBSL. Additionally, Primary Members are required to maintain a Settlement Guarantee Amount (SGA) in a dedicated RTGS account, equal to or exceeding their total CEFTS and CAS NDCs (including those of Secondary Members), to ensure timely settlement.
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