Sri Lanka to sign deal with Euroclear to process rupee bonds
ECONOMYNEXT – The Sri Lankan government has approved an agreement with Belgium-based Euroclear to process internationally traded rupee bonds, which will improve access for international investors and increase the liquidity of the securities.
The Euroclear facility will take at least two years to be in place, as the regulatory framework must be in place, according to a proposal by finance minister Ravi Karunanayake approved by the Cabinet of Ministers.
Euroclear is a post-trade back-office process provider that processes financial trades after they are complete,
Transactions between local investors on central bank systems is not chargeable by Euroclear, according to the proposal.
The Cabinet of Ministers has approved the signing of an agreement between Euroclear Bank SA/NV, the central bank and finance ministry.
It will make all existing and future issuances of Sri Lankan government securities Euroclearble via ‘International Link’ (i-Link), the technology to access Euroclear facilities.
(COLOMBO, Feb 23, 2017)