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The Central Bank of Sri Lanka Maintains Policy Interest Rates at their Current Levels

The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on 13 October 2021, decided to maintain the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank at their current levels of 5.00 per cent and 6.00 per cent, respectively. The Board arrived at this decision after carefully considering the macroeconomic conditions and expected developments on the domestic and global fronts. The Board reiterated its commitment to maintaining inflation at the targeted levels over the medium term with appropriate measures, while supporting the economy to reach its potential in the period ahead.

Swarnamahal Financial Services PLC - Resumption of business for a limited purpose on a Conditional Basis

The Monetary Board of the Central Bank of Sri Lanka (Monetary Board) has made an order permitting Swarnamahal Financial Services PLC (SFSP) to resume business for a limited period of six (06) months with effect from 13.10.2021, in terms of Section 31(5)(a) of the Finance Business Act, No. 42 of 2011 (FBA), for the purpose of exploring the possibility of absorbing the Company to the “Master Plan for Consolidation of Non-Bank Financial Institutions Sector”.

The Panel of Management appointed by the Monetary Board (Panel) has been authorized to continue managing the affairs of SFSP, and to initiate and facilitate the aforesaid process, while directors of SFSP shall carry out only the functions that will be authorized by the Director, Department of Supervision of Non-Bank Financial Institutions (D/SNBFI) and/or the Panel.

Sri Lanka’s International Sovereign Bonds Maturing in 2022 Quoted at Discounted Prices, but Volumes not Available for Purchase

As per the “6-month Road Map for Ensuring Macroeconomic and Financial System Stability” presented by the Central Bank of Sri Lanka on 01.10.2021, the International Sovereign Bond (ISB) exposure is to be gradually reduced to around 10 per cent of Gross Domestic Product (GDP) over the next 3 years. In line with this objective, having observed the discounted prices at which the upcoming January and July 2022 ISB maturities were trading during the month of September 2021, the Central Bank explored the possibility of executing a buy-back exercise in consulation with a number of International Banks and Lead Arrangers.

Implementing a Mobile Application "SL- Remit" to facilitate Foreign Remittances

The Central Bank of Sri Lanka (CBSL) had appointed a Working Committee to study and suggest new remittance channels for Sri Lanka and to make recommendations on reducing the cost of remitting money, having identified the need to introduce new and low cost remittance channels with the objective of increasing the inflows of foreign remittances while discouraging the use of informal channels.

The Working Committee comprised experienced professionals from Bank of Ceylon, People’s Bank, Sampath Bank PLC, Commercial Bank of Ceylon PLC, Hatton National Bank PLC, The Hongkong and Shanghai Banking Corporation Limited, Cargills Bank Ltd, Dialog Axiata PLC, Mobitel (Pvt) Ltd and CBSL.

Central Bank of Sri Lanka Co-hosts the CBSL-ADBI-APAEA Online Macroeconomics Conference

The Central Bank of Sri Lanka co-hosted the CBSL-ADBI-APAEA Online Macroeconomics Conference for the second consecutive year, in collaboration with the Asian Development Bank Institute (ADBI) and the Asia-Pacific Applied Economics Association (APAEA), on 30 September 2021. This year’s theme was Emerging Issues for Macroeconomic Stability.

Release of ‘A Step by Step Guide to Doing Business in Sri Lanka’

The ninth edition of the series ‘A Step by Step Guide to Doing Business in Sri Lanka’ published by the Central Bank of Sri Lanka (CBSL) is now available, in English medium, for the public. This is a source document, which contains information relevant for the business community and foreign investors, and facilitates saving their time and cost in accessing such information. The booklet encompasses, in a single source, all prevailing regulations applicable for starting, operating, and closing a business enterprise in Sri Lanka and the other information useful for potential entrepreneurs.

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