Dec 24, 2020 (LBO) – Licensed commercial banks and National Savings Bank are required to suspend the purchase of Sri Lanka ISBs with immediate effect for a period of three months, the Central Bank said in a Banking Act direction.
The Central Bank observes that a sizable amount of investment in Sri Lanka International Sovereign Bonds (ISBs) has been made by licensed banks thus far during the year.
Furthermore, it has been observed that licensed banks continue to purchase Sri Lanka ISBs using inflows to the current account of the balance of payments, thereby adding undue pressure to the domestic foreign exchange market.
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