Sri Lanka’s treasury bond management system has been streamlined on recommendations made by Presidential Committee of inquiry on the great bond scam.
With the view of enhancing the transparency and tradability in the secondary market, measures are being taken to introduce a new primary issuance system for Treasury bills, Central Bank said announcing servaral measures taken towards this end.
A distinct electronic trading platform, with a central counter party (CCP) arrangement for government securities, along with required legal 36 reforms to deepen and broaden the secondary market for Treasury bills and Treasury bonds will be established.
A mechanism will be put in place to disseminate secondary market information on debt instruments through the proposed e-trading platform and a clearing house.
The Medium Term Debt Strategy (MTDS) is to be further streamlined with the assistance of multilateral agencies.
Further, Central Bank will introduce amendments to the Local Treasury Bills Ordinance (LTBO) and Registered Stock and Securities Ordinance (RSSO) to ensure smooth and efficient functioning of the debt management system.
In view of the increased volatility in global financial markets, it also intends to reduce the threshold for foreign investment in rupee denominated Government securities from 10 per cent of the outstanding Government securities stock at present to 5 per cent.
Management of the Employees’ Provident Fund (EPF) In discharging powers and duties vested with the Monetary Board in relation to the largest superannuation fund in Sri Lanka,
The Central Bank has strived to improve the services provided to its stakeholders, while ensuring the enhancement of the return to members and the safety of Employees’ Provident Fund (EPF).
During 2018, the EPF continued its fund management activities to enhance returns by aligning the investment strategy with market conditions.
Also, several measures were taken to improve the overall risk management framework of the EPF with a view to enhancing accountability and the 37 transparency of investment activities.
As a part of this process, new Investment Policy Statement and Investment Guidelines were introduced, he disclosed.
The governance structure of the EPF risk management was also strengthened through the establishment of an EPF Investment Oversight Committee in addition to the EPF Investment Committee to monitor investment activities.
(LI)