Communications Department

30, Janadhipathi Mawatha, Colombo 01, Sri Lanka.

Tel : 2477424, 2477423, 2477311
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E-mail: dcommunications@cbsl.lk, communications@cbsl.lk
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Press Release
Issued By
Date


Central Bank enters into an Investment Agreement with
Reserve Bank of India

The Central Bank of Sri Lanka (CBSL) and the Reserve Bank of India (RBI)
entered into a Bilateral Agreement on the 24
th
July 2014 which enables CBSL
to further diversify its reserves management activities into Indian rupee
denominated assets, while reciprocally, RBI is able to access the Sri Lankan
government securities market, up to a maximum value equivalent of US
dollars 500 million, each way. As a result, the CBSL could now access one of
the growing securities markets in the world, realising a considerably higher
return for the funds invested. At the same time, the RBI investments in the
Sri Lankan government securities market would lead to greater stability in
the Sri Lankan government bond market.
Governor of the Central Bank of Sri Lanka, Mr. Ajith Nivard Cabraal
exchanged the Bilateral Investment Agreement with the Governor of the
Reserve Bank of India, Dr. Raghuram Rajan, on the sidelines of the
SAARCFINANCE Governors Symposium.

International Operations Department
24 July 2014
This historic agreement also set the stage for the Central Bank Economists
Meeting due to commence on the 25
th
July 2014, in Colombo which is on the
theme Reaping Mutual Benefits through Intra-regional Investments of
Reserves.

The picture shows CBSL Governor Ajith Nivard Cabraal and RBI Governor
Dr. Raghuram Rajan, exchanging the Bilateral Agreement at the
SAARCFINANCE Governors Symposium and Meeting of Senior SAARC
Central Bank Economists held in Colombo. Governor of the Nepal Rastra
Bank, Dr Yuba Raj Khatiwada is also in the picture.



The picture below shows CBSL Governor Ajith Nivard Cabraal and RBI
Governor Dr. Raghuram Rajan after exchanging the Bilateral
Agreement at the SAARCFINANCE Governors Symposium and
Meeting of Senior SAARC Central Bank Economists held in Colombo.
Also in the picture, from left to right, are Dr Nandalal Weerasinghe,
Deputy Governor, CBSL; Mr H.A.Karunaratne, Director of
International Operations Department, CBSL; Governor of the Nepal
Rastra Bank, Dr. Yuba Raj Khatiwada; Mr Deepak Mohanty, Executive
Director, RBI and Mr Vivek Aggarwal, General Manager and Executive
Assistant to Governor, RBI.