Central Bank of Sri Lanka Act 2023 · As enacted · Part VI · Foreign Exchange Operations and International Reserves
40. Management of international reserves
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
The Central Bank shall manage the official international reserves consistent with international best practices and the rules made by the Governing Board having regard to the safety, liquidity and return in that order of priority.
The international reserves of the Central Bank may include the following assets –
gold including credit balances representing such gold;
assets denominated in freely convertible foreign currencies in the form of –
foreign notes and coins held by or to the credit of the Central Bank;
credit balances and interbank deposits that are payable on demand or within a short term held in the accounts of the Central
Bank, on the books of foreign central and commercial banks, or international financial institutions;
readily-marketable debt securities issued by, or supported by foreign governments including provincial governments, foreign central banks, international financial institutions and agencies;
either the whole, or such maximum percentage of the whole, of the holdings of such drawing rights in the International Monetary Fund as may be determined from time to time by the Governing
Board; and
any other readily-marketable financial assets denominated in freely convertible foreign currencies as determined by the Governing Board.
In the event, the Central Bank is satisfied that there is a decline or a likelihood of decline in the international reserves, or such reserves may reach to a level that could jeopardize the objects of the Central Bank, and that the
Central Bank is unable to remedy such decline by its own measures, the Central Bank shall report to the Minister in writing of such decline including reasons for and recommendations to remedy such decline.
Part VII
Currency and Legal Tender
Part VIII
Payment and Settlement Systems
Part IX
Supervision and Resolution of Financial Institutions
Part X
Macroprudential Authority
Part XI
Financial System Oversight Committee
Part XII
Information Exchange with Financial Sector Authorities
Part XIII
Statistics and Information
Part XIV
Relationship with the Parliament, the Government and the Public
Part XV
Credit Operations
Part XVI
Financial Provisions
Part XVII
Internal and External Audits
Part XVIII
General Provisions
Part XIX