Banks restricted from purchasing sovereign bonds for six months

The Central Bank of Sri Lanka ( CBSL ) has directed the licensed commercial banks and National Savings Bank to suspend the purchase of Sri Lanka International Sovereign Bonds (ISBs) for a period of six months unless such purchase is funded by new foreign currency inflows to such  licensed  banks sourced from abroad.

The Central Bank stated that the move was to ease the pressure on the exchange rate and the stress on financial markets due to the impact of the COVID-19 outbreak and the direction will be implemented with immediate effect.

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