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srilawsby aturio
As enacted
Contents

Part V · Monetary and Other Operations

31. Open market operations

Official English translation. The Sinhala text prevails.

(1)

In order to achieve the objects of the Central

Bank and to exercise, perform and discharge its powers, duties and functions, the Central Bank may –

(a)

operate in the financial markets by buying and selling outright or under a repurchase agreement, and by lending or borrowing claims and marketable instruments, as well as precious metals;

(b)

conduct credit operations with licensed banks and other market participants operating in Sri Lanka, based on adequate collaterals; or

(c)

issue securities on such terms and conditions and in such form as may be determined by the Monetary

Policy Board.

(2)

The Monetary Policy Board shall make rules specifying–

(a)

the types of instruments and collateral to be used for open market and credit operations for the purpose of the monetary policy; and

(b)

the conditions under which the Central Bank may enter into transactions for the purposes of paragraph (a).

(3)

The Governing Board shall make rules specifying –

(a)

the types of instruments and collateral to be used for credit operations other than the monetary policy; and

(b)

the conditions under which the Central Bank may enter into transactions for the purposes of paragraph (a).

Read on from s 32

Part VI

Foreign Exchange Operations and International Reserves

Read on from Part VI

Part VII

Currency and Legal Tender

Read on from Part VII

Part VIII

Payment and Settlement Systems

Read on from Part VIII

Part IX

Supervision and Resolution of Financial Institutions

Read on from Part IX

Part X

Macroprudential Authority

Read on from Part X

Part XI

Financial System Oversight Committee

Read on from Part XI

Part XII

Information Exchange with Financial Sector Authorities

Read on from Part XII

Part XIII

Statistics and Information

Read on from Part XIII

Part XIV

Relationship with the Parliament, the Government and the Public

Read on from Part XIV

Part XV

Credit Operations

Read on from Part XV

Part XVI

Financial Provisions

Read on from Part XVI

Part XVII

Internal and External Audits

Read on from Part XVII

Part XVIII

General Provisions

Read on from Part XVIII

Part XIX

Repeals and Savings

Read on from Part XIX