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Conversion of Outstanding Credits of the Central Bank of Sri Lanka to the Government into Negotiable Debt Instruments with Specified Maturities under the Domestic Debt Optimisation Programme (DDO)

In accordance with Section 129(2) of the Central Bank of Sri Lanka Act, No. 16 of 2023, outstanding Provisional Advances from the Central Bank of Sri Lanka (CBSL) to the Government and outstanding Treasury bills purchased by the CBSL in the primary market were converted into ten (10) step-down fixed coupon* new Treasury bonds and to twelve (12) existing Treasury bills on 21 September 2023 as follows:

Governing Board of the Central Bank of Sri Lanka

The newly established Governing Board of the Central Bank of Sri Lanka, constituted under the provisions of the recently promulgated Central Bank Act No. 16 of 2023, was held today, the 21st of September 2023, at the Board Room of the Central Bank of Sri Lanka.

The Newly established Governing Board, succeeds the Monetary Board that functioned previously, under the provisions of the Monetary Law Act (MLA).

Today’s meeting of the new Governing Board of the Central Bank, was held, with the participation of the following members :-

  • a) Dr. Nandalal Weerasinghe, Governor of the Central Bank of Sri Lanka, as the Chairman,
  • b) Mr. Sanjeeva Jayawardena, President’s Counsel, who was previously, a member of the Monetary Board as well,
  • c) Mr. Nihal Fonseka, who also was previously, a member of the Monetary Board,
  • d) Dr. Ravi Ratnayake,
  • e) Mr. Anushka Wijesingha.

Governor Weerasinghe welcomed Mr. Sanjeeva Jayawardena PC, Mr. Nihal Fonseka, Dr. Ravi Ratnayake and Mr. Anushka Wijesingha, to the new Governing Board.

Publication of Financial Soundness Indicators – Banks and Licensed Finance Companies

The Central Bank has released ‘Financial Soundness Indicators’ as a key tool for communicating the performance of banks and finance companies supervised by the Central Bank. The publication includes key ratios and financials used in policy analyses for identifying strengths and vulnerabilities in the financial system.

The publication presents sectoral financial information such as assets, liabilities, earnings, profits and capital whilst providing key ratios associated with each category. This publication will be a useful and reliable source of reference for those who are interested in the performance of major financial institutions in Sri Lanka.

The Financial Soundness Indicators publication is available in electronic form and can be accessed through the Central Bank website:

Sri Lanka Purchasing Managers’ Index (Manufacturing and Services) - August 2023

Purchasing Managers Indices in August 2023 indicated an expansion in Services activities and a softening of the contraction in Manufacturing activities.

Manufacturing PMI recorded an index value of 49.3 in August 2023, reaching closer to the neutral threshold, indicating signs of a recovery in manufacturing activities compared to previous months. Considering the sub-indices, New Orders and Suppliers' Delivery Time increased during the month, while Production and Employment remained contracted.

Services sector PMI recorded an index value of 57.6 in August 2023, indicating a continued expansion in the services activities. This was led by the increases observed in New Businesses, Business Activities and Expectations for Activity. Nevertheless, Employment remained nchanged, while Backlogs of Works remained contracted during the month.

Asia Pacific Group on Money Laundering Visit to Sri Lanka – Mutual Evaluation Preparation Briefing and Workshop (6th to 8th September 2023)

In response to an invitation from the Financial Intelligence Unit of Sri Lanka, a high-level delegation from the Asia Pacific Group on Money Laundering (APG) visited Sri Lanka to engage with local authorities and provide them with crucial insights regarding the upcoming mutual evaluation of Sri Lanka’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Framework. The international delegation included:

Settlement of Exchange of Accepted Eligible Treasury Bonds for Twelve (12) New Step-Down Fixed Coupon Treasury Bonds pursuant to the Domestic Debt Optimisation Programme (DDO)

The Treasury bond Exchange Memorandum dated 04 July 2023 (the "Exchange Memorandum") was published by the Ministry of Finance, Economic Stabilization and National Policies with subsequent announcement of the results of the Invitation to Exchange Treasury bonds on 12 September 2023 (terms used herein but otherwise not defined have the meanings given to such terms in the Exchange Memorandum).

Accordingly, outstanding Eligible Bonds for which valid Offers were accepted by the Republic were converted by reference to the Exchange Consideration Ratio into twelve (12) new step-down fixed coupon* Treasury bonds and settled on 14 September 2023 as follows: