ECONOMYNEXT – Sri Lanka’s banks have sought exceptions from planned tighter single borrower limits to place dollar balances overseas to manage large capital inflows, an industry official said.
Sri Lanka is to tighten single borrower limits to 25 percent of Tier I capital, from the current around 30 percent of total capital.
Banks are expected to be allowed to buy government rupee securities.
“We also lobbied to exclude Nostro balances, because when you get large inflows you have to park it somewhere,” Bingumal Thewarathanthri Chairperson of Sri Lanka…
