RegAlert

Rule · CBSL · 23 Apr 2021 · Banking Act Direction No. 6 of 2021

Investments in Sri Lanka International Sovereign Bonds by Licensed Commercial Banks and National Savings Bank

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The Central Bank of Sri Lanka has directed licensed commercial banks and the National Savings Bank to suspend purchases of Sri Lanka International Sovereign Bonds until further notice. Issued under the Banking Act No. 30 of 1988, this directive aims to alleviate exchange rate pressure and mitigate risks from substantial foreign currency outflows. The suspension effectively freezes new bond acquisitions by these financial institutions, prioritizing domestic liquidity and risk management stability.

Sri LankaCentral Bank of Sri Lanka

MONETARY BOARD
CENTRAL BANK OF SRI LANKA

23 April 2021 | BANKING ACT DIRECTIONS | No. 06 of 2021

INVESTMENTS IN SRI LANKA INTERNATIONAL SOVEREIGN BONDS BY LICENSED COMMERCIAL BANKS AND NATIONAL SAVINGS BANK

Issued in terms of the powers conferred by Sections 46(1) and 76(J)(1) of the Banking Act No. 30 of 1988, as amended.

The Central Bank of Sri Lanka with a view to easing pressure on the exchange rate and considering the substantial amount of possible/potential outflow of foreign exchange by banks and its impact on banks’ risk management, requires the licensed commercial banks and National Savings Bank to suspend the purchase of Sri Lanka International Sovereign Bonds until further notice.

(Signature)

Prof. W D Lakshman
Chairman of the Monetary Board and
Governor of the Central Bank of Sri Lanka

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Banking Act, No. 30 of 19881988 · LK-LAWBanking Act, No. 30 of 1988 (1988-09-16)Investments in Sri LankaInternational Sovereign Bonds…2021-04-23 · this documentInvestments in Sri Lanka International Sovereign Bonds by Licensed Commercial Banks and National Savings Bank (2021-04-23)Investments in Sri LankaInternational Sovereign Bonds by …2021 · CBSLInvestments in Sri Lanka International Sovereign Bonds by Licensed Commercial Banks and National Savings Bank (2021-06-16)
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Superseded by
Issued under
  • Banking Act, No. 30 of 19881988 · LK-LAW

    “Issued in terms of the powers conferred by Sections 46(1) and 76(J)(1) of the Banking Act No. 30 of 1988, as amended.”

Timeline

Amended 1 time · last 2021-06-16

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