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

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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

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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 of government securities at the market rates.
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

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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 performace 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 Counterparty Settlement System CCP  
Central Depository   A computerized central system which records primary issuance of scripless securities and their trades taking place in the secondary market.
Central Depository System CDS  
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  
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 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  
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.
Consumer Confidence Index CCI CCI is compiled by the Statistics Department of the CBSL on a quarterly basis based on a monthly online survey conducted which is comprised of questions covering the areas of economic condition, job availability, household income, expenditure and personal savings. The Index is trifold with two sub indices to evaluate the current status of consumer expectations in comparison to six months before and consumer expectations for the upcoming six months which together forms the CCI. The Index is not currently available in the public domain.
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.
(b) Identifying the beneficial owner and taking reasonable measures to verify the identity of the beneficial owner.
(c) Understanding and, as appropriate, obtaining information on the purpose and intended nature of the business relationship.
(d) Conducting ongoing due diligence on the business relationship and scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions being conducted are consistent with the institution’s knowledge of the customer, their business and risk profile, including, where necessary, the source of funds.

 

D

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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  
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  
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.
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

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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 Information Technology enabled trading mechanisms which enables traders to connect, place orders and conduct trading activities for a pre-determined tangible/intangible types of items.
Electronic Trading Platform ETP  
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

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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 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.
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

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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

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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

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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

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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

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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.
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  
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

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Term

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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   Refers to the date on which 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

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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,

  1. emigrants to facilitate local transactions and permitted investments in Sri Lanka out of their rupee generated income which is eligible to claim migration allowance.
  2. firms and companies outside Sri Lanka, to repatriate their local income derived from current transactions and proceeds of investments made in Sri Lanka for which the inward remittances brought into the country could not be proved.
Note Series   A collection of denominations of currency notes issued under a specific theme
Numismatic   A study or collection of currency

 

O

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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 to the 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

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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 intermediary appointed by the Central Bank to deal in government securities.
Primary Market   Market where securities are first issued to buyers.
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

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Term

Abbreviation

Description

 Quick Response code  QR code  

 

R

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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  
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  
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 Repo A form of temporary deposit by the PIs with the CBSL under OMOs involving the sale of government securities by the CBSL to PIs with an agreement to buy them back at a higher price at a future date
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   A form of temporary borrowing by the PIs from the CBSL under OMOs involving the purchase of government securities by the CBSL from PIs with an agreement to sell them back at a higher price at a future date
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

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Term

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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 holds all securities in electronic form in a central depository at the CBSL
Secondary Market   The market where securities are traded and exchanged among buyers and sellers after the securities are issued 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  
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

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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

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Term

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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

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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

 

W

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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

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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

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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.