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As enacted
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Part V · Monetary and Other Operations

32. Regulation of reserves of the financial institutions

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

(1)

The Central Bank shall require-

(a)

the licensed commercial banks; and

(b)

such other financial institutions falling under such criteria as may be prescribed by the

Monetary Policy Board (in this Act referred to as the “relevant financial institutions”), to maintain reserves against their deposit liabilities and such of their other financial liabilities as the Monetary Policy

Board may consider necessary and shall, for that purpose, prescribe the classes of deposit liabilities and the categories of other financial liabilities against which reserves are required to be maintained.

(2)

The reserves required to be maintained by a licensed commercial bank or a relevant financial institution under subsection (1), shall be proportionate to the volumes of each class of its deposit liabilities and each category of its other financial liabilities and shall, subject to subsection (3), take the form of rupee deposits in the Central Bank.

(3)

The Monetary Policy Board may, in the interest of the national economy and the banking and financial systems of Sri Lanka, demand the maintenance of any part of the reserves required to be maintained, in the form of assets other than rupee deposits in the Central Bank.

Read on from s 33

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