Glossary
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
|
Term |
Abbreviation |
Description |
| Accepted Level of Risk | ALR | Accepted level of risk is the level of potential losses that an institution considers acceptable in a given content. |
| Access to Credit (in BOS) | Indicates the accessibility of bank credit during the current quarter | |
| Active Liability Management Act | ALMA | |
| Agriculture Value Chain | AVC | Different segments and their connectivity in agriculture sector. |
| AMD 01 | Letter to be sent to the EPF Department to rectify the discrepancy between the name of a member who has already been sent through RR 06 form & the name in accordance with the National Identity Card. | |
| AMD 02 | Letter to be sent if there is a discrepancy between the National Identity Card number of a member who has already been sent through RR 06 form & the number according to the National Identity Card. | |
| Annual average basis Inflation | The percentage change of the average CPI of last 12 months and the averge CPI of previous 12 months. | |
| Anti-Money Laundering and Countering the Financing of Terrorism | AML/CFT | Anti-money laundering refers to the laws, regulations and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income. Combating the Financing of Terrorism is a set of government laws, regulations, and other practices that are intended to restrict access to funding and financial services for those whom the government designates as terrorists. |
| Application System 400 | AS/400 | Application System 400 (AS/400) is a server operating platform developed by IBM. |
| Asia Pacific Group on Money Laundering | APG | The Asia/Pacific Group on Money Laundering is an inter-governmental organisation, consisting of 41 member jurisdictions, focused on ensuring that its members effectively implement the international standards against money laundering, terrorist financing and proliferation financing related to weapons of mass destruction. |
| Asian Development Bank | ADB | |
| ASL Balancing | EPF annual balancing of accounts & credit of annual interest to member accounts. | |
| Asset-Backed Securities | ABS | Asset-Backed Security is a security whose payments are backed by a specified pool of assets such as loans, receivables, and mortgages. |
| Assistant Commissioner of Labor | ACL | |
| Authentication | The identification process that verifies a user as the person he/she claims to be | |
| Authorized Dealer | AD | A bank licensed under the Banking Act, No. 30 of 1988 authorized under section 4 of the Foreign Exchange Act, No.12 of 2017 as authorized dealer to deal in foreign exchange |
| Authorized Money Broker | AMB | Authorised Money Broker (AMB) is a financial intermediary engaging in the business of money broking, foreign exchange broking, inter - bank money broking, in respect of transactions of financial products with clients in the money, securities and foreign exchange markets in Sri Lanka and other recognized international markets issued with the Certificate of Authorisation in 2013 under the Money Broking Regulations No. 01 of 2013. |
| Average Time to Maturity | ATM | Weighted average time to maturity of all the debt securities/loans in the debt portfolio. |
| Average Time to Refixing | ATR | |
| Average Weighted Call Money Rate | AWCMR | Weighted average of interest rates of overnight call money market transactions (uncollateralized) between licensed commercial banks (LCBs) on a given day, which is computed and published by the CBSL on each working day. AWCMR is also CBSL’s operating target under the existing monetary policy framework. |
| Average Weighted Repo Rate | AWRR | Weighted average of interest rates of overnight repo transactions (collateralized) between Participating Institutions (PIs) on a given day, which is computed and published by the CBSL on each working day. |
B
|
Term |
Abbreviation |
Description |
| Back Office | BO | Back office is responsible for the payment & settlement activities relating to the transaction carried out by Front Office. |
| Bank Identifier Code | BIC | Bank Identifier Code (BIC) is a 8 to 11 character code that is used to identify a specific bank when make a SWIFT transaction. It's almost like a postcode for a bank, ensuring that money goes to the right place. |
| Bank Supervision Department | BSD | |
| Banking Soundness Index | BSI | An indicator that has been developed to assess the soundness of the banking sector, which is a key component of the financial system with respect to financial stability. |
| Basis Points | BPS | |
| Benchmark | A benchmark is a standard measure with which the comparison of risk and performance of investments can be made. | |
| Benchmark Bond | A bond that provides a standard against which the performance of other bonds can be measured. Government bonds are often used as benchmark bonds. This is also referred to as “benchmark issue”. | |
| Board Risk Oversight Committee | BROC | |
| Bond Borrowing Scheme | BBS | A special scheme used by the CBSL to absorb excess liquidity in the domestic money market using borrowed securities from a third party at times when the stock of Treasury bills and Treasury bonds held by the CBSL is not adequate to conduct repurchase transactions under open market operations (OMOs). Currently, the CBSL is only permitted to borrow securities from the Employees’ Provident Fund under BBS |
| Book Value | BV | Value at sale or purchasing price of a government security |
| Brilliant Uncirculated Coins | Coins typically produced the same way as circulated coins but with quality enhancements to create brilliant finish | |
| Bunching of Debt Stock | An excessive amount of debt maturing on a given date or within a given period of time. | |
| Business Condition (in BOS) | Indicates the general business condition during the current quarter and the expectation for the next quarter | |
| Business Continuity | The process performed to ensure that critical functionalities of systems are available to users without disruption even through disasters | |
| Business Continuity Plan | BCP | |
| Business Foreign Currency Account | BFCA | Foreign Currency Account for persons resident in Sri Lanka who earn foreign exchange from a resident outside Sri Lanka. |
| Business Outlook Survey | BOS | BOS is a quarterly survey which captures the sentiments of the corporate sector covering all three major sectors of the economy with respect to current and expected developments of key areas of business activities, which serve to monitor the ongoing status of the economy. |
C
|
Term |
Abbreviation |
Description |
| Capacity Utilisation (in BOS) | Indicates the capacity utilised (labour, facilities etc.) during the current quarter and the expectation for the next quarter as compared to corresponding quarter of the last year | |
| Capital Adequacy Ratio | CAR | |
| Capital Transaction | A transaction which is not a current transaction within the meaning of the Foreign Exchange Act, No.12 of 2017 | |
| Capital Transactions Rupee Account | CTRA | Account which has been introduced to facilitate emigrants, non-nationals resident in or outside Sri Lanka and resident persons who intend to migrate/depart from Sri Lanka, to repatriate their eligible migration allowance and other eligible proceeds outside Sri Lanka. |
| CCPI Core | CCPI Core | Excluding Volatile Food, Energy and Transport from the CCPI basket |
| Central Bank of Sri Lanka | CBSL | |
| Central Counterparty | CCP | A central counterparty interposes itself between counterparties to contracts traded in one or more financial markets, becoming the buyer to every seller and the seller to every buyer and thereby ensuring the performance of open contracts. A CCP becomes counterparty to trades with market participants through novation, an open-offer system, or through an analogous legally binding arrangement. CCPs have the potential to reduce significant risks to participants through the multilateral netting of trades and by imposing more-effective risk controls on all participants and, as a result, they can reduce systemic risk in the markets they serve. |
| Central Depository System | CDS | The system which electronically records the ownership of government of Sri Lanka debt securities and Central Bank of Sri Lanka Securities issued in scripless form. This is system is owned and operated by Central Bank of Sri Lanka |
| Central Integrated Market Monitor | CIMM | A reporting platform provided by CBSL to PIs, which is used to record all money market transactions on near real time basis and details of liquidity position of PIs |
| Central Securities Depository | CSD | A system which electronically records the ownership of Securities issued in scripless form. |
| Centre for Banking Studies | CBS | |
| Certificate of Authorization | COA | Authorization granted by the Monetary Board of the Central Bank of Sri Lanka for a company registered under the Companies Act No 07 of 2007 to engage in the business of money broking under the Money Broking Regulations No. 01 of 2013 (as amended). |
| Ceylon Petroleum Corporation | CPC | |
| Chief Compliance Officer | CCO | |
| Chief Risk Officer | CRO | |
| Circulation Standard Commemorative Coins | Commemorative coins that are issued into circulation for transaction in which the monetary value equals the face value of the coin | |
| Claims Adjuster (Loss Adjuster) | Investigates insurance claims to determine the extent of insuring a company's liability. | |
| Claims Ratio | The percentage of claims costs incurred in relation to the premiums earned. | |
| Clean Note Policy | Ensure the availability of good quality notes in circulation | |
| Coinage | A collection of denominations of coins issued into circulation | |
| Collateral | Collateral is a security of asset accepted by lenders from borrowers to protect in an event of defaults. If a borrower failed to honor the obligations, the lender can use the pledged collaterals to claim against the loss incurred due to defaults. | |
| Colombo Consumer Price Index | CCPI | CCPI demonstrates the price movment of selcted goods and services consumed by urban households of the Colombo district. |
| Colombo Stock Exchange | CSE | |
| Combined Ratio | A measure of profitability used by an insurance company to gauge how well it is performing in its daily operations. The combined ratio is calculated by taking the sum of incurred losses and expenses and then dividing them by the earned premium. | |
| Commemorative Notes and Coins | A currency note or coin issued to commemorate the significance of the contribution of a person or a special event to the wellbeing of the Sri Lankan society | |
| Commercial Papers | Commonly used type of short-term debt instrument issued by corporations, typically used for the financing short-term liabilities. | |
| Commercial Scale Dairy Development Loan Scheme | CSDDLS | |
| Communications Department | CMD | |
| Compliance Monitoring Officer | CMO | |
| Complaint Reference Number | CRN | |
| Complaint Submission Form | CSF | |
| CON TOT Checking | Checking the balance not credited into the member accounts & remained at employer account prior to the annual account balance. | |
| Condominium Market Survey | CMS | CMS is carried out by the Statistics Department of the CBSL targeting the condominium developers on a quarterly basis with the objective of obtaining market information including sales transaction data, required to be used in informed decision making process and in property price index compilation process. A summary report compiled based on the information obtained through the survey is published on the CBSL website on a quarterly basis. |
| Consolidated Operating Instructions | COI | A circular, which outlines all operating instructions relating to OMOs of the Central Bank of Sri Lanka. |
| Contagion Risk | Transmission of financial difficulties in one or many financial institutions to a large number of other financial institutions or to the entire financial system. Financial Interconnectedness acts as a conduit for contagion. | |
| Contribution detail file for paying through electronic media | EVEMC | |
| Core Inflation | Measures excluding Volatile Food, Energy and Transport from the headline index | |
| Corporate Debt Instruments | CDI | |
| Corporative Wholesale Establishment | CWE | |
| Counterfeit/ Forged Notes | Currency issued into circulation by any person or establishment other than the Central Bank of Sri Lanka, in a deliberate attempt to imitate the currency to deceive its recipient | |
| Counterparty | A counterparty is the opposite party to a financial transaction. | |
| Counterparty Credit Risk Management Guideline | CCRMG | |
| Coupon | The interest payment made to bond holders during the lifetime of the bond. Coupon payments are usually paid semi-annually. The annual amount of interest is equal to the principal value times the coupon rate. | |
| Credit Card | A payment card which involves a line of credit granted by the issuer to the card holder, where the credit utilized can be settled in full or in part on or before a specified date. The issuer may charge interest or other charges on any amount not settled on the specified date | |
| Credit Guarantee/Credit Guarantees | CG/CGs | One of the tools for credit risk mitigation and credit enhancement. The guarantee is issued by the CBSL as the agent of the GOSL or acts on behalf of the GOSL and it covers the risk of default by borrowers. If the borrower fails to repay what he borrowed by financial institutions, the financial institutions could resort to Credit Guarantee Scheme to recover the losses incurred by him due to the default by the borrower. |
| Credit Risk | Credit risk is the possibility of a loss due to failure of a borrower to repay full or part of their financial obligation when due. | |
| Credit Supply survey | CSS | CSS is a survey to capture the recent developments and forward-looking information on the credit activities of all licensed commercial banks and licensed specialised banks in the country on a quarterly basis. |
| Criminal Investigation Division | CID | |
| Currency | All currency notes and coins issued or circulating in the country in accordance with the Monetary Law Act No. 58 of 1949 | |
| Currency Department | CRD | |
| Currency in Circulation | CIC | The physical amount of currency notes and coins held by the public (Including Licensed Commercial Banks and other Financial Institutions) at a given time |
| Currency Note Processing System | CNPS | |
| Current Transaction | Any international transaction necessitating a transfer of foreign exchange into or from Sri Lanka, and referred to in paragraph (d) of Article XXX of the Articles of the International Monetary Fund | |
| Customer Due Diligence | CDD |
Customer due diligence is the process of (a) Identifying the customer and verifying that customer’s identity using reliable, independent source documents, data or information. |
D
|
Term |
Abbreviation |
Description |
| Damaged/ Mutilated Notes | Currency note which has been reduced in its original size due to wear and tear, burnt, decomposed, shredded, torn, and where security features, date on note, serial number and signature are tampered with, by accident or by various natural disasters | |
| Data Library | Data Library consists of time series data on a variety of areas spanning across Real, Monetary, Fiscal, External and Financial sectors collected from several internal Departments of the Central Bank and several external institutions. | |
| Data Warehouse | A data storage architecture that enables business intelligence activities to be performed on stored data | |
| Deal in foreign exchange | Accepting, buying, selling, borrowing, and lending of foreign exchange and exchange to any other foreign currency for the purposes under the Foreign Exchange Act, No. 12 of 2017 | |
| Dealer Direct Participant | DDP | A Direct Participant appointed as a Dealer Direct Participant by CBSL in terms of the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance. Dealer Direct Participant shall have the access to maintain securities accounts in the CDS and effect transfers of Scripless Securities on its own behalf or on behalf of its Customers. |
| Dealing Unit | DU | |
| Debit Card | A payment card that may be used to withdraw cash and/or execute payments for purchase of goods and services, by directly debiting from the credit balance of the cardholder’s account | |
| Debt Sustainability | The level of debt which allows a debtor country to meet its current and future debt service obligations in full, without recourse to further debt relief or rescheduling, avoiding accumulation of arrears, while allowing an acceptable level of economic growth. | |
| Declaration | Declaration to the Department of Customs where foreign exchange exceeds USD 15,000 or its equivalent in other foreign currencies or an appropriate declaration to an Authorized Dealer where such foreign exchange is less than or equals USD 15,000 or its equivalent in other foreign currencies | |
| Delivery Versus Payment | DVP | Transfer (delivery) of ownership of securities and the underlying transfer of funds are realized simultaneously on real time. |
| Delivery Versus Payment I | DVPI | Transfer of ownership of securities are realized and the underlying transfer of funds are realized on gross basis in real-time bilaterally between PIs as final settlements. |
| Delivery Versus Payment II | DVPII | Transfer of ownership of securities are realized on gross (trade-by-trade) basis in real-time but the underlying transfer of funds realize on differed net basis between PIs as final settlements. |
| Delivery Versus Payment III | DVPIII | Transfer of ownership of securities and the underlying transfer of funds are realized on differed net settlement basis. i.e. at predetermined times of a day (based on the frequency of net settlements) open positions of securities and open positions of funds are netted multilaterally and settled between all PIs simultaneously ensuring settlement finality of transactions (irrevocable and unconditional). |
| Demand (in BOS) | Indicates the volume of demand during the current quarter and the expectation for the next quarter as compared to corresponding quarter of the last year | |
| Demand for Bank Credit (in BOS) | Indicates the demand to obtain bank credit during the current quarter and the expectation for the next quarter as compared to corresponding quarter of the last year | |
| Demonetization | Withdrawal of a coin or currency note from use as legal tender by the Central Bank with an advance notice | |
| Department of Cencus and Statistics | DCS | |
| Department of Foreign Exchange | DFE | |
| Department of Supervision of Non-Bank Financial Institutions | DSNBFI | |
| Departmental Risk Officer | DRO | |
| Deputy Commissioner of Labour | DCL | |
| Deputy Secretary to the Treasury | DST | Deputy Secretary to the Treasury (DST) is the key position to handle all government related transactions and documentations. In the case of Government departments, all transaction related requests to CBSL should be made through DST. |
| Designated Foreign Currency | United States Dollars (USD); Euro; Sterling Pound; Australian Dollars; Singapore Dollars; Swedish Kroner; Swiss Franc; Canadian Dollars; Hong Kong Dollars; Japanese Yen; Danish Kroner; Norwegian Kroner; Chinese Renminbi; New Zealand Dollars and Thai Baht. | |
| Designated Non-Finance Businesses and Professions | DNFBPs | Institutions engaged in Designated Non-Finance Businesses and Professions as defined in the Financial Transactions Reporting Act, No. 6 of 2006 |
| Determination Letter | DL | |
| Digital Signature | A cryptographically generated group of data, containing an electronic message that verifies a signatory | |
| Diplomatic Foreign Currency Account | DFCA | Foreign Currency Account for Diplomatic Missions/ Personal in Sri Lanka |
| Diplomatic Mission | An embassy, high commission, consulate, permanent mission of United Nations Organization, European Union delegation of the European Commission, International Monetary Fund, International Bank for Reconstruction and Development, Asian Development Bank or any other similar organization which has been recognized as a diplomatic mission by the Protocol Division of the Ministry of Foreign Affairs (MFA) from time to time | |
| Diplomatic personnel | Citizens of a foreign country represented by the diplomatic mission | |
| Diplomatic Rupee Account | DRA | Sri Lanka Rupee Account for Diplomatic Missions/ Personal in Sri Lanka |
| Direct Financial Interconnectedness | Direct Financial Interconnectedness originates from direct linkages between financial institutions through financial transactions, other obligations and relationships. | |
| Direct Issuance Window | DIW | The arrangement in place for direct issuances of Treasury Bonds in the Primary Market at the WAYR determined at the Primary auction and allowed for bidding during the period between primary auction and its settlement. |
| Direct Participant | DP | A Licensed Commercial Bank, a Primary Dealer or any other person appointed as a Direct Participant by CBSL in terms of the Registered Stock and Securities Ordinance and the Local Treasury Bills Ordinance. A Direct Participant shall have the access to maintain a securities account in the CSD and effect transfers of Scripless Securities on its own behalf. |
| Director Risk Management | DRM | |
| Disaster Recovery | A subset of Business continuity, that refers to the procedures involved in recovering data, technology and systems through any disaster situation | |
| Disaster Recovery Site | DRS | |
| Disbursed Outstanding External Debt | DOD | |
| District Office Code | D/O Code | |
| Domain | A network of computers and devices controlled by an authority according to its regulations and guidelines | |
| Domestic Agriculture Development | DAD | |
| Domestic Agriculture Development - Pilot Project | DAD-PP | |
| Domestic Debt Management Committee | DDMC | |
| Domestic Operations Bond Borrowing Account | DOBB | The account which, Treasury bonds borrowed under the BBS from a third party are transferred temporarily enabling CBSL to use the Treasury bonds for OMOs. |
| Domestic Operations Department | DOD | |
| Duration (Public Debt) | The weighted average maturity of the cash flows of a debt security/portfolio. | |
| Duration (Risk Management) | Duration is a market risk parameter used to measure the price sensitivity of a financial instruments or a portfolio to interest rate changes. | |
| DVPIII | Simultaneous Net Settlement of Securities and Funds Transfers. These systems settle transfer instructions for both securities and funds on a net basis, with final transfer of both occurring at the end of the processing cycle. Settlement may occur once a day or several times a day. |
E
|
Term |
Abbreviation |
Description |
| Economic and Social Statistics of Sri Lanka | ESS | Statistics Department of the CBSL has been publishing ESS on an annual basis, with the objective of providing a single source of information that contains economic and social statistics related to Sri Lanka and neighbouring countries. The booklet is available in both printed and electronic formats and in all three official languages. |
| Economic History Museum | EHM | |
| Economic Research Department | ERD | |
| Electronic Fund Transfer Card | EFTC | A card or a device that enables the user to transfer value in credit, debit or any other form and includes credit cards, debit cards and stored value cards where transaction details could be identified by the ADs for the purposes of being compliant with the provisions of the FEA |
| Electronic Return | e-Return | |
| Electronic Trading | E-Trading | It is an electronic mechanism which enables traders to connect, place orders and conduct trading activities of eligible instruments such as securities, derivatives and commodities. |
| Electronic Trading Platform | ETP | The electronic platform which facilitates Electronic Trading. |
| Emigrant | An individual Sri Lankan who has obtained Permanent Residency status or Citizenship in another country, a dual citizen of Sri Lanka whose mother or father was born in Sri Lanka, a non-Sri Lankan citizen whose mother or father was born in Sri Lanka and whose birth has been registered in Sri Lanka, including minors of the said persons. | |
| Emigrants’ Remittable Income Account | ERIA | An account introduced for the purpose of repatriation of current income derived in Sri Lanka by an emigrants, only if there is a regulatory requirement in the country where the emigrant is residing permanently, to identify the current income globally derived by such emigrant. |
| Employed Population | Persons who worked at least one hour during the reference period, as paid employees, employers, own account workers or contributing family workers are said to be employed. This also includes persons with a job but not at work during the reference period. | |
| Employee Share Ownership Plan/ Employee Share Option Scheme | A plan or a scheme under which a company incorporated outside Sri Lanka offers an opportunity to acquire its shares or shares of the group of companies, to employees of its branch or subsidiary in Sri Lanka | |
| Employees' Provident Fund | EPF | A mandatory defined contribution retirement scheme for the private and semi-government sector employees who do not enjoy pension benefits. It is the largest superannuation fund in Sri Lanka. |
| Employees' Provident Fund Department | EPF | |
| Employees' Trust Fund | ETF | All public sector employees who are not entitled to the Govt. Pension Scheme and all private sector employees are members of this Fund while their employers are required to remit 3% of the gross earnings of their employees to the Fund, monthly. Hence, unlike the EPF, only the employer makes a contribution on behalf of the employee/member and hence, it is a non-contributory benefit to the member. |
| Employment (in PMI) | Number of employees working for the organisation | |
| Enterprise-wide Risk Management | ERM | Enterprise-Wide Risk Management is the overall management of risk that an organization takes and holds to achieve its strategic objectives. |
| EPF Investment Committee | EIC | |
| EPF Investment Oversight Committee | EIOC | |
| Europian Investment Bank | EIB | |
| Expected Loss | EL | Expected loss is a credit risk measure which calculates as the sum of the possible losses multiplied by the probability of occurring that loss. |
| Export Development Board | EDB | |
| External Commercial Borrowing Account | ECBA | Account maintained by the resident borrower (other than Licensed Commercial Banks, Licensed Specialized Bank, the Government of Sri Lanka and State owned enterprises) to credit proceeds of the foreign borrowings obtained by persons resident outside Sri Lanka, under the provisions of the Foreign Exchange Act, No. 12 of 2017 |
F
|
Term |
Abbreviation |
Description |
| Face Value | FV | Face value also called as par value, is the maturity value of a security. This is the principal amount paid by its borrower at the time of maturity of the instrument. |
| Facilities Management Department | FMD | |
| File Transfer Protocol | FTP | A set of rules followed by computers when transferring files over the internet from one system to another |
| Finance Department | FD | |
| Financial Action Task Force | FATF |
The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society. As a policy-making body, the FATF works to generate the necessary political will to bring about national legislative and regulatory reforms in these areas. The FATF has developed the FATF Recommendations, or FATF Standards, which ensure a co-ordinated global response to prevent money laundering, terrorist financing, funding for weapons of mass destruction and organised crimes and corruptions. The FATF monitors countries to ensure they implement the FATF Standards fully and effectively and holds countries to account that do not comply. |
| Financial Consumer Protection | FCP | |
| Financial Consumer Relations Department | FCRD | |
| Financial Inclusion Survey | FIS | |
| Financial Information Network | FInNet | Financial Information Network (FInNet) is a system which facilitated with collecting regulatory reporting data from Licensed Commercial Banks (LCBs), Primary Dealers (PDs) and Leasing Companies daily, weekly, monthly, quarterly and annual basis |
| Financial Institutions | FIs | Institutions engaged in finance business as defined in the Financial Transactions Reporting Act, No. 6 of 2006 |
| Financial Intelligence Unit | FIU | The Financial Intelligence Unit of Sri Lanka was established in March 2006 in terms of the provisions of the Financial Transactions Reporting Act No. 06 of 2006 (FTRA) under the Ministry of Finance. The FIU functions as an independent institution within the administrative structure of the CBSL in terms of the order made by H.E the President under the FTRA to combat money laundering, terrorist financing and other related crimes in Sri Lanka in line with international recommendations and standards. |
| Financial Interconnectedness | Financial interconnectedness is the network of financial linkages resulting from credit exposures, trading links, other relationships and dependencies between financial Institutions. Financial Interconnectedness is an important dimension of systemic Risk. Financial interconnectedness is of two folds viz. direct financial interconnectedness and indirect financial interconnectedness. | |
| Financial Intermediary | FI | The process of channeling funds between parties who has surplus funds and fund deficits. |
| Financial Risk | Financial risk is a risk of loosing the value of investments due to certain expected and unexpected factors and can broadly be categorized as market, credit, liquidity and operational risk. | |
| Financial Service Provider | FSP | |
| Firewall | A guarding barrier in between networks that blocks unauthorized communication coming from outside networks including the internet | |
| Fitch Ratings | Fitch | |
| Fixed Deposit | FD | |
| Fixed Income Quote | FIQ | |
| Fixed Income Securities | FIS | Fixed income securities are instruments which give fixed and regular stream of cash flow to the investor. |
| Floating Rate Bond | A bond that has a variable coupon equal to a money market reference rate, like LIBOR plus a spread. The spread is a value that remains constant. | |
| Foreign airline | Any ‘foreign air operator’ within the meaning of the Civil Aviation Act, No. 14 of 2010 (as amended) which is a resident outside Sri Lanka | |
| Foreign Currency | Any currency other than Sri Lankan currency. | |
| Foreign Currency Term Financing Facility | FCTFF | |
| Foreign Direct Investment | FDI | |
| Foreign Exchange Act, No. 12 of 2017 | FEA | |
| Foreign Shipping line | Any shipping line within the meaning of the Licensing of Shipping Agency Act, No. 10 of 1972 (as amended) which is a resident outside Sri Lanka | |
| Form ‘83’ | The summary of EPF contribution payments & individual accounts performed by a relevant employer for one account year, who sent C 03 form but does not send contributions electronically even with more than 150 employees. | |
| Form ‘C 01’ | The form which should be sent by the employers with more than 50 employees, who have not yet registered to submit EPF contributions electronically along with monthly EPF contributions. | |
| Form ‘C 03’ | The form which should be sent by the employers who has paid the EPF contributions on a monthly basis through C 01 form, to send the details of the contributions to be made to the members' accounts. | |
| Form ‘C’ | The form which contains the details of contributions to be made to the members accounts & forwarded along with contributions to the Department of Employees’ Provident Fund (EPF Department) by the employers with less than 50 employees on monthly basis. | |
| Form ‘CL 01’ | The form should be forwarded through Labour Department along with the ‘C’ form & the first installment to be credited under proportionate method when paying arrears EPF contributions or contributions paying after legal actions on installment basis. | |
| Form ‘CL 02’ | The form which contains the details of contributions to be sent when forwarding the relevant other installments of the EPF Contributions to the FPF Department under proportionate method when submitted the CL 01 form to the respective case. | |
| Form ‘CL 03’ | The form to be sent by the Labour Department with ‘C’ form to credit to the several installments of the EPF contributions in to individual member accounts proportionately, which are remained at the Commissioner of Labor account of the EPF Department. | |
| Form ‘CR’ | The form issued to confirm the receipt of monthly EPF contribution paid by the employers to the EPF. | |
| Form ‘D’ | An application that should be completed & submitted to the Labour Department to register their employment in the Employees Provident Fund (EPF) after a business entity has started & recruited employees. | |
| Form ‘EM1’ | This is the form that need to be submitted by an employer in for registering for submitting the EPF contributions through electronic media. | |
| Form ‘K’ | Application to be submitted to claim the refund of EPF. | |
| Form ‘N’ | The form which should be forwarded when transferring a Private Fund to the EPF Department with the approval of the Commissioner of Labor (EPF) stating the audited details of the accounts to be accounted under the EPF accounts. | |
| Form ‘Q’ | The form to be forwarded to the EPF Department with the approval of the Commissioner of Labor (EPF) to refund the erroneously paid or excess EPF contributions to the EPF within one year after payment of contributions. | |
| Form ‘RR 02’ | The form to be completed by an employer to rectify the discrepancy between the name of the National Identity Card of an employee who has already paid EPF contributions & the name of the Central Bank of Sri Lanka & re-register the member details with the EPF Department as per the information in the National Identity Card. | |
| Form ‘RR 06’ | The form to be completed & sent by the employer stating the members who are paying EPF contributions under their employer & registering them with the EPF Department as per the information contained in their National Identity Card. | |
| Form ‘WR1’ | The Application Form required to be completed & submitted to Employees’ Provident Fund (EPF) Department of Central Bank to register for the Online/ Short Message Service (SMS) balance inquiry facility. When a member obtains the EPF Online balance inquiry facility he would be able to view his current balance, contribution history, status of the refund application, status of the housing loan application. | |
| Form ‘WR2’ | The Application Form required to be completed & submitted to EPF Department of Central Bank to add new EPF member accounts to the EPF Online balance inquiry facility when he has already registered for the online balance inquiry facility. | |
| Form 1 | Sales of foreign exchange | |
| Form 2 | Purchases of foreign exchange | |
| Front office | FO | Front office is the unit which involves in trading and investment activities with counterparties. |
| Frosted Proof Coins | Uncirculated commemorative coin with a mirror like background with frosted design elements. Typically these coins are minted manually to bring out the details in design | |
| Fund Management Departments | FMDs | |
| Fund Transfer | FT |
G
|
Term |
Abbreviation |
Description |
| General Insurance | Insurance contracts that do not come under the ambit of life insurance are called general insurance. The different forms of general insurance are fire, marine, motor, accident and other miscellaneous non-life insurance. | |
| General Sales Agent | GSA | A person authorized to carry on business as a general sales agent in Sri Lanka on behalf of a foreign airline (foreign principal) with a valid license or authorization letter issued by the Director General of Civil Aviation Authority of Sri Lanka |
| Genuine Currency Notes | Currency notes issued by the Central Bank of Sri Lanka | |
| Government of Sri Lanka | GOSL | |
| Grace Period | Period of time provided for in a loan agreement for commencement of repayment of the loan. | |
| Grant Element | A measure of concessionally of a loan, calculated as the difference between the face value of the loan and the sum of discounted future debt service payments to be made by the borrower expressed as a percentage of the face value of the loan. | |
| Gross Domestic Product | GDP | GDP is the standard measure of estimating market value of the value added created through the production of goods and services in a country during a certain period. |
| Gross National Product | GNP | |
| Gross Written Premiums | Total revenue from a contract expected to be received by an insurer before deductions for reinsurance or ceding commissions. | |
| Growth at Risk | Growth at Risk framework predicts the growth distribution of GDP conditional on an index of macrofinancial conditions. The framework quantifies macrofinancial risks in terms of growth and monitor the evolution of risks to economic activity over time. |
H
|
Term |
Abbreviation |
Description |
| Headline inflation | Headline inflation refers to the rate of change in the consumer price index and measures the total inflation within an economy. | |
| Host | A host machine can be a server, client or any other type of a computer that is accessible over a network | |
| Housing Loan | HL | |
| Human Resources Department | HRD | |
| Hypertext Transfer Protocol | HTTP | A set of rules used by information systems that enables users to ineteract with World Wide Web data on the internet. When a URL is entered to the browser an HTTP instruction is sent to the web server demanding it to find and view the required web page |
I
|
Term |
Abbreviation |
Description |
| IEL | The ledger containing the balance at the end of the year in each member's accounts after balancing the annual accounts. | |
| Immediate family members under Regulations No 1 and 4 of 2021 | The parents, spouse, and children of the relevant person. | |
| Immediate family members under Regulations No 2 of 2021 | The parents, grandparents, spouse, and children of the relevant person. | |
| Immediate family members under Regulations No 3 of 2021 | The parents, grandparents, siblings and spouse of the relevant person. | |
| Impact | The damage a risk event would cause in the event it materializes. | |
| Index Linked Bond | A bond, which pays a coupon that, varies according to some underlying index usually the Consumer Price Index. | |
| Indirect Financial Interconnectedness | This refers to channels through which distress of a financial institute can affect another financial institution even in the absence of direct relationships. Exposure to common assets, shadow banking, fire sales, margin calls and haircuts and information spillovers are a few examples of indirect financial interconnectedness. | |
| Industrial Development Board | IDB | |
| Inflation | A constant rise in the general price level of goods and services in an economy over the year. There are two measures of inflation in general use. Those are Year-on-Year base Inflation and Moving average Inflation. | |
| Information Technology | IT | |
| Information Technology Department | ITD | |
| Inherent Risk | The amount of risk that exists assuming there are no mitigating controls in place. | |
| Initial Public Offering | An initial public offering is a public offering in which shares of a company are sold to institutional investors and retail investors for the first time. | |
| Input Prices (in BOS) | Indicates the input prices (raw material prices or prices of other inputs such as labour) during the current quarter and the expectation for the next quarter as compared to corresponding quarter of the last year | |
| Insurance Policyholder | A person or entity who owns or controls an insurance policy and has the privilege to exercise the rights outlined in the contract. This party is often, but not always, the insured and may or may not be one of the policy’s beneficiaries. | |
| Interest Rate Risk | Interest rate risk is the risk of changing the value of an asset when interest rates changes in the market. | |
| Interest Service | INT | |
| Interest Subsidy | IS | One of the tools that are used to expand the access to finance. GOSL or CBSL or a donor agency may provide funds to provide interest subsidy to the financial institutions under interest subsidy schemes in order to encourage the financial institutions to lend by using their own funds to economic sectors, which involve high credit risk. |
| Internal Audit Department | IAD | |
| Internal Investment Oversight Committee | IIOC | |
| International Bank for Reconstruction and Development | IBRD | |
| International Development Agency | IDA | |
| International Finance Corporation | IFC | |
| International Fund For Agricultural Development | IFAD | |
| International Monetary Fund | IMF | |
| International Operations Department | IOD | |
| International Reserve Investment Oversight Committee | IRIOC | |
| International Securities Identification Number | ISIN | An identification number allocated to distinguish as per the type of security, tenure and date of maturity of government securities |
| International Sovereign Bond | ISB | |
| Internet Protocol address | IP address | An identification number which is unique to each computer Eg: 192.168.101.1. |
| Intra Day Liquidity | Funds, which can be accessed during a business day and settled on the same day, usually to enable financial institutions to make payments on real time. | |
| Intraday Liquidity Facility | ILF | An intra-day interest free funding facility provided to PIs by the CBSL to facilitate smooth operation of the Real Time Gross Settlement (RTGS) System. |
| Investment (in BOS) | Indicates the investment level during the current quarter and the expectation for the next quarter as compared to corresponding quarter of the last year | |
| Investment Guidelines | IG | |
| Investment Management and Accounting System | IMAS | |
| Investment Oversight Committees | IOCs | |
| Investment Policy Statement | IPS | |
| Inward Investment Account | IIA | An account introduced for channelling inward remittances in respect of permitted capital transactions in Sri Lanka by non-resident investors and repatriation of any return of such investments. |
K
|
Term |
Abbreviation |
Description |
| Key Rate Duration | Key rate duration is a measure of how sensitive a debt security’s price is when its yield changes by 1% for a certain maturity while all other maturities are held constant. | |
| Know Your Customer | KYC | The mandatory process of identifying and verifying the customer's identity when entering into relationships with FIs or DNFBPs |
L
|
Term |
Abbreviation |
Description |
| Labour Force | The current economically active population, i.e. the number of persons (aged 15 years and above), who are employed or unemployed during the reference one-week period. | |
| Labour Productivity | Measured in terms of Gross Value Added (GVA) (in 2010 prices) per hour worked | |
| Land Price Index | LPI | LPI was compiled by the Statistics Department of the CBSL using per perch bare land prices obtained from the Government Valuation Department covering all 13 DS divisions in the Colombo District on a semi-annual basis. From 2nd half of 2019 onwards LPI is renamed as LVI and released on a semi-annual basis. |
| Land Valuation Indicator | LVI | LVI which is previously known as LPI, is compiled by the Statistics Department of the CBSL using per perch bare land prices obtained from the Government Valuation Department covering all 13 DS divisions in the Colombo District on a semi-annual basis. |
| LankaClear (Pvt.) Ltd | LCPL | LankaClear (Pvt.) Ltd (LCPL) is the national payment network that functions under the guidance and supervision of the Central Bank of Sri Lanka (CBSL), LankaClear is regarded one of the best Public Private Partnership (PPP) in the region. |
| LankaSecure Net | The internet based online viewing facility for the investors in Govt. Securities recorded in the Central Depository System | |
| LankaSecure System | The Scripless Securities Settlement System and the Central Depository System established and operated by CBSL in terms of the Monetary Law Act | |
| LankaSettle System | Real-Time Gross Settlement System and the LankaSecure System established and operated by CBSL in terms of the Monetary Law Act | |
| Legal & Compliance Department | LCD | |
| Legal Tender | All currency notes and coins issued by the Central Bank shall be valid in Sri Lanka for the payment of any amount | |
| Letter of Acceptance of Payments of Outstanding Bills due to Contractors and Suppliers of the Government | LAPC | A letter issued by the Government Treasury to contractors and suppliers of the Government confirming the outstanding payments from the Government to enable such contractors and suppliers to use the letter as a security to obtain loans from LCBs under special loan schemes introduced by the CBSL during the Covid-19 pandemic |
| Library and Information Centre | LIC | |
| Licensed Commercial Bank | LCB | |
| Licensed Specialized Bank | LSB | |
| Likelihood | The probability of a risk event occurring | |
| Liquidity | Liquidity refers to the ability to convert an asset into cash without affecting its market price. | |
| Liquidity Facility to the Contractors and Suppliers | LFCS | A special loan scheme introduced by the CBSL for contractors and suppliers of the Government to obtain loans from LCBs against the LAPCs issued by the Government Treasury during the Covid-19 pandemic |
| Liquidity Risk | Liquidity risk Is the risk that a financial institutions fails to meet its financial obligations, without incurring a substantial loss. | |
| Liquidity Support Facility | LSF | A Reverse Repo auction available for SPDs under OMOs |
| Loan Scheme | LS | |
| Loan to Value Ratio | LTV | Measures the relationship between the loan amount and the market value of the asset securing the loan. |
| Local Treasury Bills Ordinance | LTBO | Local Treasury Bills Ordinance No. 8 of 1923 (as amended) |
| London Inter-Bank Offered Rate | LIBOR | The London Inter Bank Offered Rate. This rate is used as a reference rate by the international banking markets and is commonly the basis on which lending/borrowing margins are fixed. |
| Long Term Credit Rating | LTCR | |
| Long-term Insurance | Refers to life insurance |
M
|
Term |
Abbreviation |
Description |
| Macrofinancal feedback loops | Adverse condition in the macroeconomy affecting a component in the financial system which in turn will impact the macroeconomy again which will continue in form of a loop | |
| Macroprudential policy | Policies aimed at maintaining financial system stability and avoiding systemic risk | |
| Macroprudential Surveillance Department | MSD | |
| Management Committee | MC | The Committee established under National Financial Inclusion Strategy (NFIS) which will supervise the day-to-day implementation of the NFIS and ensure that progress adheres to the implementation plan and the guidance of the NFIC |
| Market capitalisation | Market capitalisation is the total number of issued shares of listed Companies, multiplied by their respective prices at a given time. This figure reflects the broad value of the market at that time. | |
| Market Operations Committee | MOC | A committee, that is entrusted with the task of translating overall monetary policy considerations adopted by the Monetary Board into daily monetary operations. Accordingly, upon reviewing developments in the domestic money and foreign exchange markets daily, the MOC decides on the required actions in relation to liquidity management, taking into consideration the estimated liquidity conditions, desired level of the operating target, liquidity distribution among market participants, the need for devising appropriate market signals, etc. |
| Market Risk | Market risk encompasses the risk of financial losses resulting from movements in market prices and includes interest rate risk, foreign exchange risk, equity price risk & the commodity price risk. | |
| Maturity | In case of a security (financial instrument) maturity is the amount and date the issuer has promised to redeem the issue by paying the principal value. The number of days or years until the date of redemption is called the maturity period. | |
| Medium and Long-Term Debt Service | MLDS | |
| Medium Term Debt Management Strategy | MTDS | |
| Medium Term Fiscal Framework | MTFF | |
| Memorandum of Understanding | MoU | |
| Micro Finance | MF | |
| Micro, Small and Medium Enterprises | MSME | |
| Middle Office | MO | Middle Office conduct risk analysis & performance analysis of trading/investment activities. |
| Migration Allowance | A quota permitted for emigrants who is aged 18 years or above to claim proceeds of realised from any asset in Sri Lanka which was owned/acquired/inherited/ received as a gift by such emigrants. | |
| Ministry of Finance | MOF | |
| Monetary Board | MB | |
| Monetary Law Act | MLA | |
| Money Laundering and Terrorist Financing | ML/TF | Money Laundering is the process by which proceeds from a criminal activity are disguised to conceal their illicit origin. Terrorist financing is the financing of terrorist acts, and of terrorists and terrorist organisations. |
| Money Market | MM | |
| Monitoring & Evaluation System | M&E System | |
| Month on month basis Inflation | The percentage change of the current month Consumer Price Index(CPI) over previous month CPI. | |
| Moody’s Investors Service | Moody's | |
| Mortgage-Backed Securities | MBS | A mortgage-backed security is a special type of asset backed security backed by mortgage loans. |
| Multilateral Net Settlement Clearing Balances | MLNSB | Multilateral Net Settlement Balances (MLNSB) is the net balances which are generated by LCPL through its Cheque Clearing, SLIPS Clearing, Common ATM Switch Clearing, Common Electronic Fund Transfer Switch Clearing and Common Point of Sales Clearing systems of Licensed Commercial Banks (LCBs). |
N
|
Term |
Abbreviation |
Description |
| National Agribusiness Development Programme | NADeP | |
| National Consumer Price Index | NCPI | The NCPI demonstrates the price movment of selcted goods and services consumed by households at national level. |
| National Crafts Council | NCC | |
| National Financial Inclusion Council | NFIC | The Council established under National Financial Inclusion Strategy (NFIS) which provide overall leadership, policy guidance, and strategic direction for the NFIS and oversee the NFIS implementation with the support from Management Committee and the Secretariat. |
| National Financial Inclusion Strategy | NFIS | Strategy for individuals and enterprises in Sri Lanka can access high-quality, appropriate, secure, and affordable services based on their needs and make an informed choice and use these services efficiently and effectively to support their economic activities and improve the quality of their lives. |
| National Payment Council | NPC | |
| National Steering Committee | NSC | |
| NCPI Core | NCPI Core | Excluding Volatile Food, Energy and Transport from the NCPI basket |
| Near Field Communication | NFC | A short range wireless technology that allows devices with NFC chips to communicate securely with each other usually by a physical device touch or when placed within very close proximity |
| Net Present Value | NPV | |
| New Comprehensive Rural Credit Scheme | NCRCS | |
| New Orders (in PMI) | The volume of new sales orders | |
| Non-Financial Risk Management Committee | NFRMC | |
| Non-Financial Risks | Risks excluding financial risks | |
| Non-Governmental Organization | NGO | A voluntary social service organization registered under the National Secretariat for Non-Governmental Organizations in terms of the Voluntary Social Service Organizations [Registration and Supervision] Act, No. 31 of 1980 and any amendment thereto. |
| Non-Resident Rupee Account | NRRA |
A Sri Lanka Rupee account introduced for,
|
| Note Series | A collection of denominations of currency notes issued under a specific theme | |
| Novation | Replacement of a contract between the original counterparties with two new contracts; one between the buyer’s clearing agent and the CCP, and another between the CCP and the seller’s clearing agent | |
| Numismatic | A study or collection of currency |
O
|
Term |
Abbreviation |
Description |
| Off-shore Banking Unit | OBU | |
| One Time Password | OTP | An auto generated string of numeric or alphanumeric characters used to authenticate a user for a single transaction or login session |
| Online Electronic Bidding System | OEBS | AS400 system that facilitates conducting auctions under OMOs and access to standing facilities by the Pis |
| Open Market Operations | OMO | OMOs are the market based monetary policy operations conducted by the CBSL using acceptable securities to maintain market liquidity at appropriate levels in line with the monetary policy stance of the CBSL. The CBSL can use government securities and the CBSL’s own securities for this purpose. OMOs are used to steer the overnight interbank interest rates (AWCMR) along a desired path within the Standing Rate Corridor (SRC) by managing liquidity in the domestic money market so as to be consistent with the prevailing monetary policy stance. |
| Operating Instructions | OIs | Operating guidelines issued by the Regional Development Department of the Central Bank of Sri Lanka to implement a credit scheme including refinance, interest subsidy and credit guarantee from time to time. |
| Operational Risk | Risk of loss resulting from inadequate or failed internal processes, people, systems or from external events. | |
| Organization of the Petroleum Exporting Countries | OPEC | |
| Output Prices (in BOS) | Indicates the sales prices during the current quarter and the expectation for the next quarter as compared to corresponding quarter of the last year | |
| Outright Transactions | Transactions by which ownership (title) of the securities are transferred permanently from seller to buyer. | |
| Outstanding External Debt | OED | |
| Outward Investment Account | OIA | An account introduced for channelling outward remittances in respect of permitted capital transactions outside Sri Lanka by resident persons and receipt of any return of such investments into Sri Lanka. |
| Overdraft | OD | A deficit in a current account held with an LCB caused by drawing more money than the account holds |
P
|
Term |
Abbreviation |
Description |
| Parent Migration Scheme | A scheme operated by a foreign country enabling Sri Lankan parents of a person who has obtained permanent residency status or citizenship in that country, to obtain permanent residency status in such foreign country. | |
| Parity Variance | Effect of the appreciation/ depreciation of foreign currencies against the local currency on the existing foreign currency debt portfolio stated in the local currency. | |
| Participating Institutions | PIs | Financial Institutions such as Licensed Commercial Banks (LCBs) and Standalone Primary Dealers (Companies appointed as Primary Dealers except LCBs) as well as the Employees Provident Fund (EPF) which, the CBSL conducts operations with |
| Participatory Financial Institution | PFI | |
| Payment detail file for paying through electronic media | EVEMP | |
| Payments & Settlements Department | PSD | |
| Person | Any natural or legal person | |
| Personal Foreign Currency Account | PFCA | Foreign Currency Account for eligible individuals |
| Persons’ resident in Sri Lanka | Persons determined as ‘residents’ in terms of the Order issued under Section 31 of the Foreign Exchange Act, No. 12 of 2017 | |
| Phishing | A trick scammers do to obtain private information from vulnerable users. Scammers send fabricated e-mails that seem to be from legitimate websites, requiring users to click on certain malicious links through which personal data may be stolen | |
| Policy Review and Monitoring Department | PRMD | |
| Port Terminal operators | Include Airport & Aviation Services (Sri Lanka) Ltd., Sri Lanka Ports Authority, South Asia Gateway Terminals (Pvt) Ltd. and Colombo International Container Terminals Ltd | |
| Portfolio Management Unit | PMU | |
| Potential Exposure | PE | |
| Poverty Alleviation Microfinance Project | PAMP | |
| Poverty Alleviation Microfinance Project -Revolving Fund | PAMP - RF | |
| Price-earnings ratio | The ratio of a company's/ overall market’s share price to the company's/ overall market’s earnings per share. The ratio is used for valuing companies/ overall market and to find out whether they are overvalued or undervalued | |
| Price-to-book ratio | Price-to-book ratio is a financial ratio used to compare a company's current market value to its book value. | |
| Primary Dealer | PD | An institution appointed by CBSL under the LTBO and the RSSO to participate in the Primary Auctions of Government Securities, and to hold and transact Scripless Securities for itself and for its customers. |
| Primary Market | Market is where the instruments are first created and issued to the investors for the first time. | |
| Primary Market Weighted Average Yield Rates | PMWAYR | |
| Private- Public- Producers Partnership | 4P | |
| Probability of Default | PD | |
| Profitability (in BOS) | Indicates the profit level during the current quarter and the expectation for the next quarter as compared to corresponding quarter of the last year | |
| Project Management Unit | PMU | |
| Property Price Indices | Statistics Department of the CBSL currently compiles four property price indices covering the Colombo District. The Price Index for new condominiums is compiled on a quarterly basis using the information gathered through the CMS. Meanwhile, Asking Price Indices are compiled for Condominiums, Houses and Lands on a monthly basis using property advertisement information. These price indices are calculated according to hedonic regression based rolling window time dummy method following international best practices. | |
| Provincial Gross Domestic Product | PGDP | PGDP is computed by the Statistics Department of the CBSL, using a top-down approach by disaggregating the nominal GDP compiled by the Department of Census and Statistics (DCS). In the estimation of PGDP for the provinces, the value of each line item in GDP is apportioned using relevant indicators at the provincial level. |
| Public Debt Department | PDD | |
| Purchasing Managers' Index | PMI | PMI is a monthly survey conducted seperately on a monthly basis for Manufacturing, Construction and Services activities, and the data are considered as high frequency and timely indicators of economic activities |
Q
|
Term |
Abbreviation |
Description |
| Quick Response code | QR code |
R
|
Term |
Abbreviation |
Description |
| Real Estate Investment Trusts | REITS | A company or a fund, listed and traded on an exchange, whose purpose is to invest in property or finance income-generating real estate/infrastructure. REITs pool the capital of numerous investors and, similarly to a mutual fund, sells shares in those investments, providing the holder with exposure to real estate investment without buying, managing or financing any properties themselves. |
| Real Time Gross Settlement | RTGS | Real Time Gross Settlement System (RTGS) is an electronic fund settlement system which processes and settles each payment instruction individually and irrevocably on real time basis using funds in the participants’ Settlement Accounts in the RTGS System. |
| Receipts in exports of goods and non-factor Services including workers’ remittances and Compensation of employees. | XGS | |
| Receive versus Payment | RVP | Transfer (receipt) of ownership of securities and the underlying transfer of funds are realized simultaneously on real time. |
| Regional Development Department | RDD | |
| Regional Office - Anuradhapura | RO-ANU | |
| Regional Office - Kilinochchi | RO-KIL | |
| Regional Office - Matale | RO-MAL | |
| Regional Office - Matara | RO-MAT | |
| Regional Office - Nuwara Eliya | RO-NUW | |
| Regional Office - Trincomalee | RO-TRI | |
| Registered Stocks and Securities Ordinance | RSSO | Registered Stock and Securities Ordinance No. 7 of 1937 (as amended) |
| Remittances | Include telegraphic transfers, other interbank transfers, bank drafts, other payment instruments, payments received via other internationally accepted payment mechanisms or platforms and funds received from exchange companies/houses in foreign currency from abroad, other than currency notes | |
| Repayment Period | The period during which the debt obligation is to be repaid. | |
| Repealed Exchange Control Act | ECA | |
| Reproduction of Currency Notes | Copying, replicating, imitating or designing any part (more than 25% of a currency note) or the whole of the visual image, contents or appearance of currency notes through illustrations, paintings, photographs, pictures, electronic images, print or electronic media including internet, television and films | |
| Repurchase trade/ agreement | Repo | A trade or an agreement by which one party agrees to sell Scripless Securities to another on an undertaking to buy back such securities on an agreed date on agreed terms. |
| Reserve Maintenance Period | RMP | Reserve Maintenance Period (RMP) is the period which LCBs needs maintain their reserves at CBSL. Currently the RMP is two weeks period. |
| Resident Guest Scheme | RGS | Special Accounts for of prospective investors and professionals who come to Sri Lanka under ‘Resident Guest Scheme’ implemented by the Department of Immigration and Emigration |
| Resident Investor | An eligible resident persons as specified in the Regulations issued under the provisions of FEA, to make permitted capital transactions outside Sri Lanka. | |
| Residual Risk | Risk after considering the effectiveness of mitigating control(s) already in place | |
| Resolution and Enforcement Department | RED | |
| Restricted Dealer | RD | Any person, class or classes of persons not being an authorized dealer, to deal in foreign exchange within Sri Lanka for the purposes specified in the permit, subject to such terms and conditions as may be imposed by the Central Bank in that behalf |
| Retention Ratio | The percentage of businesses covered by insurance companies that are not transferred to reinsurance. | |
| Returned Determination Letter | RDL | |
| Reverse Repo | Re-Repo | A trade or an agreement by which one party agrees to buy Scripless Securities from another on an undertaking by such party to sell back such securities on an agreed date on agreed terms. |
| Risk Appetite Statement | RAS | Statement that sets out the amount and types of risks that an entity is willing to undertake in order to meet its objectives and its readiness to accept a level of risks subsequent to the application of risk treatments. |
| Risk Coordinating Officers | RCOs | |
| Risk Management Department | RMD | |
| Risk Management Policy Statement | RMPS | |
| Risk Matrix | A four-point scale which gives the rating for residual risk, by considering the ratings for aggregate impact and likelihood of the risk events. | |
| Risk Weighted Capital Adequacy Ratio | The ratio computed by dividing available capital by the risk weighted assets. | |
| Running Cost Ratio | The interest paid as a proportion of the outstanding debt stock at the beginning of the year. | |
| Rupee Loan | A medium to long-term debt instrument issued with maturities more than two years on tap basis or as private placements by the Central Bank on behalf of the government under the Registered Stock and Securities Ordinance. Interest rates of this instrument are determined administratively. |
S
|
Term |
Abbreviation |
Description |
| Sales (in BOS) | Indicates the sales volume during the current quarter and the expectation for the next quarter as compared to corresponding quarter of the last year | |
| Scripless Securities | Treasury bills and Treasury bonds issued in book entry form or as paperless securities. | |
| Scripless Security Settlement System | SSSS | A system which facilitates the settlement of transactions in Scripless Securities. |
| Secondary Market |
The market where securities are traded and exchanged among buyers and sellers after the securities are issued at the primary market. In case of government securities, Secondary Market is where government securities are traded between market participants /investors subsequent to the first issuance at the primary market. |
|
| Secretariat Department | SEC | |
| Securities and Exchange Commission of Sri Lanka | SEC | |
| Securities Investment Account | SIA | |
| Security Features | Features incorporated in currency notes enabling distinguishing between genuine currency notes and counterfeit notes | |
| Security Services Department | SSD | |
| Self-Employment Promotion Initiative Loan Scheme | SEPI | |
| Senior Foreign Nationals’ Special Account | SFNSA | Special Accounts for senior foreign nationals who are over 55 years of age and wish to a prolonged stay in Sri Lanka on resident visas under “Sri Lanka – My Dream Home programme” implemented by the Department of Immigration and Emigration |
| Server | A specific computer dedicated to serve requests made by other devices or software programs | |
| Serviceable/Fit Currency Notes | Currency notes in a good condition that can be continue to be in circulation | |
| Settlement Risk | Settlement risk is a type of counterparty risk, where counterparty fails to deliver its obligation as per the terms and conditions to the trade. | |
| Shipping Agent | SA | Person authorized to carry on business as a shipping agent in Sri Lanka on behalf of a foreign shipping line (foreign principal) with a valid license or authorization letter issued by the Director General of Merchant Shipping of Sri Lanka |
| Short Message Service | SMS | |
| Short Selling | The sale of an asset (a security/ stock, commodity futures contract, corporate or sovereign bond) that is not owned by the seller at the time of sale. Short selling are of two kinds, namely “Naked Short Selling and “Covered Short Selling”. | |
| Skill Development Program | SDP | A program conducted to improve the business management knowledge of MSMEs |
| Small and Medium Enterprises | SME | |
| Small Enterprises Development Division | SED | |
| Smallholder Agribusiness Partnerships Programme | SAPP | |
| Smallholder Tea and Rubber Revitalization | STaRR | |
| Society for Worldwide Interbank Financial Telecommunications | SWIFT | Society for Worldwide Interbank Financial Telecommunications (SWIFT) is a global member-owned cooperative and the world’s leading provider of secure financial messaging services. |
| Sovereign Bond | A debt security issued by a sovereign government denominated in domestic or a foreign currency. The foreign currency most likely is a hard currency. | |
| Sovereign Credit Rating |
A sovereign credit rating is an independent assessment of the creditworthiness of a country or sovereign entity. Sovereign credit ratings can give investors insights into the level of risk associated with investing in the debt of a particular country, including any political risk. At the request of the country, a credit rating agency will evaluate its economic and political environment to assign it a rating. Obtaining a good sovereign credit rating is usually essential for developing countries that want access to funding in international bond markets. |
|
| Sovereign Risk | The chance that a national government's treasury or central bank will default on their sovereign debt, or else implement foreign exchange rules or restrictions that will significantly reduce or negate the worth of its forex contracts. | |
| Special Drawing Rights | SDR | The unit of account of the International Monetary Fund of which the value is based on a basket of key international currencies. |
| Special Foreign Currency Account | SFCA | Foreign Currency Accounts specially permitted under the Foreign Exchange Act, No. 12 of 2017 with specific credit and debit limits |
| Sri Lanka Development Bond | SLDB | Government bond denominated in USD, issued by Government of Sri Lanka domestically under Foreign Loan Act. 29 of 1957, for the purpose of developmental activities of the country. |
| Sri Lanka Inter-bank Payment System | SLIPS | Sri Lanka Inter-bank Payment System (SLIPS) handle pre -authorized small value bulk payments (direct credit and debit transfers). |
| Sri Lanka Nation Building Bonds | SLNBB | |
| Sri Lanka Prosperity Index | SLPI | SLPI is a composite indicator compiled by the Statistics Department of the CBSL to measure the level of prosperity of the country. The index comprises three sub-indices, i.e. Economy and Business Climate, Well-being of the People and Socio-Economic Infrastructure, measured using 41 variables representing different aspects of prosperity. |
| Sri Lanka Socio Economic Data Folder | SLSED | A pocket-size annual publication containing statistical tables and charts on socio economic variables including country comparisons. The booklet is available in both printed and electronic formats and in all three official languages. |
| Staff Services Management Department | SSMD | |
| Standalone Primary Dealer | SPD | Non-bank primary dealers |
| Standard and Poor’s | S&P | |
| Standing Deposit Facility | SDF | A facility provided for PIs to deposit any excess funds at the CBSL at the end of the day |
| Standing Deposit Facility Rate | SDFR | The deposit interest rate at which the SDF is provided to PIs, which forms lower bound of the Standing Rate Corridor (SRC) |
| Standing Lending Facility | SLF | A collateralized facility provided for PIs to fulfill any further shortage of the liquidity requirements from the CBSL at the end of the day |
| Standing Lending Facility Rate | SLFR | The interest rate at which the SLF is provided to PIs, which forms the upper bound of the (SRC) |
| Standing Rate Corridor | SRC | An interest rate corridor formed by the main policy rates of the CBSL i.e. SDFR and SLFR |
| State Owned Enterprises | SOEs | A legal entity that is created by a government in order to partake in commercial activities on the government's behalf. It can be either wholly or partially owned by a government and is typically earmarked to participate in specific commercial activities. |
| Statistics Department | STD | |
| Statutory Reserve Requirement | SRR | Statutory Reserve Requirement (SRR) is the proportion of rupee deposit liabilities that commercial banks are required to maintain as a deposit with the Central Bank, subject to an allowance for vault cash balances of more than two per cent but not exceeding three per cent of deposit liability, which could be deducted from the requirement. |
| Stock of Purchases (in PMI) | Raw materials purchased and kept in a warehouse to be used for production | |
| Strategic Asset Allocation | SAA | SAA is the process by which an institution determines the appropriate asset allocation at any point in time to achieve its long-term investment objectives. |
| Strategic Risk | Risk events that adversely impact or affect an entity’s business strategy and strategic objectives. | |
| Stress Testing | Stress Testing is used to determine the stability of a given sector/institution to withstand potential vulnerabilities emanating from certain unlikely but plausible events or movements in macro-financial variables. | |
| Subsidiary Loan Agreement | SLA | Loan agreement entered into by and between the CBSL and each of the PFIs with regard to the implementation of a loan Scheme |
| Suppliers' Delivery Time (in PMI) | Time lag between order placement and delivery by the supplier | |
| Systemic Risk (Macro Financial) | Risk of disruptions to the provision of financial services that is caused by an impairment of all or parts of the financial system, and can cause serious negative consequences for the real economy (IMF) | |
| Systemic Risk (Modelling) | Systemic risk is the risk of a breakdown of an entire financial system or financial markets caused by idiosyncratic events or conditions of financial sector. Risks associated with an individual entity or multiple of entities may not trigger a systemic risk if such risks can be contained without harming the entire system. | |
| Systems Applications and Products | SAP |
T
|
Term |
Abbreviation |
Description |
| Tactical Asset Allocation | TAA | TAA is the asset allocation maintaining in a portfolio deviating from use SAA in order to take its advantage of pricing anomalies available in its market. It is an active management portfolio strategy. |
| Technical Assistance | TA | |
| Technology Transfer Program | TTP | A program conducted to improve the technical knowledge of business processes of MSMEs |
| Temporary Resident Visa under Regulation 3 of 2021 | A visa obtained by a citizen of Sri Lanka which falls into a category of visa that entitles the individual to obtain permanent residency status or citizenship in that country at a future date subject to fulfilling specified conditions. | |
| Terms of Reference | ToR | |
| The Convention on the Suppression of Terrorist Financing Act, No. 25 of 2005 | CSTFA | An act which gives effect to the International Convention for the Suppression of Terrorist Financing and prohibits the financing of terrorist acts, terrorists and terrorist organizations, and sets provisions for freezing, seizure and forfeiture of terrorist financing related assets. |
| The Financial Transactions Reporting Act, No. 6 of 2006 | FTRA | An Act to provide for the collection of data relating to suspicious financial transactions to facilitate the prevention, detection, investigation and prosecution of the offences of money laundering and the financing of terrorism respectively ; to require certain institutions to undertake due diligence measures to combat money laundering and the financing of terrorism ; to identify the authority which will be responsible for monitoring the activities of all institutions to whom this act applies ; and to provide for matters connected therewith or incidental thereto |
| The Prevention of Money Laundering Act, No. 5 of 2006 | PMLA | An act to prohibit money laundering in Sri Lanka; to provide the necessary measures to combat and prevent money laundering: and to provide for matters connected therewith or incidental thereto. |
| Total Debt Service | TDS | |
| Training of Trainers | ToT | |
| Treasury Bill | T-Bill | A short-term debt instrument issued usually on a discount basis and for maturities of 91, 182, and 364 days by the CBSL on behalf of the government under the Local Treasury Bills Ordinance. |
| Treasury Bond | T-Bond | A medium to long-term debt instrument issued by the CBSL on behalf of the government under the Registered Stock and Securities Ordinance. |
U
|
Term |
Abbreviation |
Description |
| Un-circulation Standard/Uncirculated Commemorative Coins | Commemorative coins which are not issued into circulation and sold as numismatic items. Typically the selling price of such coin is higher than its’ face value | |
| Underwriting | Underwriting is the process through which an individual or institution takes on financial risk for a fee. This risk most typically involves loans, insurance, or investments. | |
| Underwriting Ratio | The amount of a company's net premiums that were allocated to underwriting costs, like commissions to agents and brokers, state and municipal taxes, salaries, benefits and other operational expenses. This ratio is determined by dividing the underwriting expenses total by net premiums earned. | |
| Unemployed Population | Persons available and/or looking for work, and who did not work and took steps to find a job during the last four weeks and are ready to accept a job given a work opportunity within next two weeks are said to be unemployed. | |
| Unfit Notes | A genuine currency note that has become worn out, badly soiled, disfigured with writing, sustained minor damage while in circulation or willfully mutilated, altered or defaced | |
| Unitholder | An investor who owns one or more units in an investment trust. A unit is equivalent to a share, or piece of interest. Unitholders are afforded specific rights that are outlined in the trust declaration, which governs the trust's actions. | |
| Unserviceable Notes | Currency notes that have become dirty, worn out/badly soiled while in circulation but not mutilated and not in a good condition to reuse |
V
|
Term |
Abbreviation |
Description |
| Value Chain Player | VCP | Participants in Value Chain |
| Value-at-Risk | VaR | VaR is the potential loss of a portfolio over a target time horizon with a given level of confidence, based on projected distribution of asset returns. |
| Virtual Currency | A digital representation of value that can be digitally traded and functions as a medium of exchange; and/or a unit of account; and/or a store of value, but does not have legal tender status in any jurisdiction and is not issued nor guaranteed by any jurisdiction | |
| Virtual Private Networking | VPN | A secure way to access a network by connecting to a remote access server through another network or the internet |
| Volatility |
W
|
Term |
Abbreviation |
Description |
| Weighted Average Cost | WAC | |
| Weighted Average Time to Maturity | WATM | |
| Weighted Average Yield Rate | WAYR | |
| Willfully Mutilated/Altered/Defaced Bank Notes | Currency notes defaced with drawings, words, numbers, signs or symbols where the serial number, date, signature, value, or security feature of the currency note has been altered in any significant way | |
| Working Groups | WG | Teams established under National Financial Inclusion Strategy (NFIS) to cover NFIS focus areas (digital finance and payments, MSME finance, consumer protection and financial literacy & capacity building) and to cover key three enable (data, infrastructure, and policy tools and enabling regulatory environment) of which act as a consultation forum for NFIS focus areas. |
Y
|
Term |
Abbreviation |
Description |
| Year on Year basis Inflation | The percentage change of the current month CPI over same month CPI of the last year | |
| Yield | The coupon or discount when expressed as a percentage of the price. | |
| Yield Curve | A graphical depiction of the relationship between the yield on the securities and different maturities. |
Z
|
Term |
Abbreviation |
Description |
| Zero Coupon Bond | A bond that does not pay interest during the life of the bond. Instead, investors buy a zero coupon bond at a deep discount on the face value. The face value of the bond is paid at the maturity. |