CENTRAL BANK OF SRI LANKA

Sri Lanka Declares 5-Day Bank Holiday to Finalise Debt Restructure

By Duruthu E Chandrasekera | 28/06/2023

The government expects the country’s domestic debt restructuring process gets to conclude during the five-day market closure period.

Capital / Liquidity

CBSL Starts Policy Easing Cycle to Revamp Economy

By Duruthu E Chandrasekera | 02/06/2023

The CBSL has lowered interest rates by 2.5 percent in a bid to restart credit flows and boost growth in the real economy.

Capital / Liquidity

IMF Bailout Presents Uncertain Outcome for Sri Lanka’s Banks

By Duruthu E Chandrasekera | 04/04/2023

The IMF estimates the banking sector recapitalisation needs around 6 percent of 2022 GDP. Local banks so far have opposed a domestic debt restructuring.

Capital / Liquidity

Sri Lanka Likely to Secure IMF Funding Next Week

By Duruthu E Chandrasekera | 15/03/2023

The IMF’s Kristalina Georgieva has welcomed “decisive policy actions” by Sri Lankan authorities and the financial assurances obtained from major creditors.

Capital / Liquidity

CBSL Issues Fresh Instruction on Consolidated SLAR Reporting

By Duruthu E Chandrasekera | 28/11/2022

The CBSL is working to address a local currency liquidity deficit in the banking system. Banks can continue to hold 90% NSFR until year-end.

AML / KYC

Sri Lanka Will Not Adopt Russia’s Mir Card Scheme

By Editors | 23/10/2022

The CBSL said it is not in a position to consider Russia’s request to operate the Mir card scheme in Sri Lanka, due to US sanctions.

Capital / Liquidity

Sri Lanka to Assess Capital Adequacy of Big Banks

By Editors | 20/10/2022

The study will assess the capital impacts of losses on foreign currency-denominated financial assets and bad debt.

Capital / Liquidity

Sri Lankan Banks Get Reprieve Amid Forex Crisis

By Duruthu E Chandrasekera | 28/05/2022

Banks can use their CCB and operate at 90 percent LCR and NSFR. IMF loan not expected until at least August.

Capital / Liquidity

CBSL Direct Banks to Halt Dividends as Sri Lanka Crisis Ensues

By Duruthu E Chandrasekera | 13/05/2022

Sri Lanka has appointed a new prime minister after protests turned violent. Banks are told to suspend discretionary payments through the “prevailing macroeconomic tumult”