CBSL calls for proposals for appointment of arrangers | Sunday Observer

CBSL calls for proposals for appointment of arrangers

21 November, 2021

Sri Lanka receives around USD 7,000 million in workers’ remittances annually.

On the strength of this steady foreign currency inflow, the Government plans to raise medium-term foreign currency financing, by securitising foreign currency receipts of the Central Bank of Sri Lanka (CBSL) under the mandatory sale of 10 percent of workers’ remittances converted into Sri Lankan Rupees by licensed banks.

Since the introduction of this mandatory sale requirement on 28 May 28, 2021, an average of USD 25 million per month has been accumulated under this arrangement by the CBSL.

With recent focused efforts to strengthen remittance flows by the CBSL in collaboration with stakeholder agencies, such inflows are expected to increase in the coming years. The proposed Securitised Financing Arrangement (SFA) would be denominated in USD, Euro, Chinese Renminbi (RMB), Japanese Yen (Yen), or in any Gulf Cooperation Council (GCC) currency.

The SFA is expected to be raised at a fixed or a floating rate for a medium-term tenure.

Repayment can be in bullet or in tranches, or on a reducing balance linked to the securitised arrangement, while interest can be paid periodically, as mutually agreed. The proceeds of the SFA will be used to finance expenditure as approved in the Annual Budget of the Government.

The CBSL has requested competitive proposals from Banks, Institutional Investors, Investment Houses for consideration to be appointed as Counterparts and/or Arrangers for the proposed SFA.

Banks, Institutional Investors and Investment Houses may submit proposals on a standalone basis or collectively.