Reserve Requirements

OPERATING INSTRUCTIONS No: 35/01/005/0007/18
19 August 2021
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 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 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 four per centum (4.00%) of the total of such deposit liabilities.
3. Schedule A of Operating Instructions No. 35/01/005/0007/17 of 17 June 2020 is
replaced by attached ‘Schedule A’.
4. The above amendment is effective from the reserve maintenance period commencing
from 01 September 2021. 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. Dr. R A Anil Perera Director/Domestic Operations

SCHEDULE A
FORM OF REPORT
REPORT OF DAILY AVERAGE RUPEE 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.

REQUIRED RESERVES
For the period commencing ……………………………………………..
Item In Sri Lankan
Rupees

1. 100% of Average daily total Margins against
   a. Letters of Credit specified under
   (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 as the case may be
2. 4% 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.