Round 1: Regulations, Directions and Guidelines

Regarding the Consolidated Operating Instructions on Market Operations issued by CBSL on 21.05.21, which statement is False?

• Under OMO, PIs can access Short Term Repo Auctions

• Under OMO, PIs can access Long Term Reverse Repo Auctions

• Under OMO, PIs can access Outright Spot FX auctions

• All of the above

As per the Consolidated Operating Instructions on Market Operations issued by CBSL on 21.05.21, what is the minimum value of a deal/bid in Rupees?

• 10,000,000

• 1,000

• 100,000,000

• 1,000,000

Directions amending the Banking Act Directions No. 4 of 2018 on Financial Derivative Transactions for Licensed Commercial Banks and Licensed Specialized Banks were issued on 30th September 2020. Section 5.7 b of the original directions stated that the marked to market gain of a derivative contract, if any, should not be passed on to a customer upon an unwinding. However, the amendment to the section in 2020 provided an exception. What was the exception?

• When the underlying transaction is an investment by foreign investors, in shares traded in the Colombo Stock Exchange

• When the underlying transaction is an investment in government securities by foreign investors

• When the underlying transaction is an investment in government securities by local investors

• All of the above

Directions amending the Banking Act Directions No. 4 of 2018 on Financial Derivative Transactions for Licensed Commercial Banks and Licensed Specialized Banks were issued on 30th September 2020. As per amendment to section 5.1 b of the original direction, in the case of Non-Market Maker Deals banks are permitted to cover such transactions with:

• With another bank.

• With a foreign counterparty.

• With CBSL.

• All of the above.

As per Banking act order No 01 of 2022, which of the following currencies is not a designated currency?

• Indian Rupee

• Pakistan Rupee

• Thai Baht

• Danish Kroner

As per DOD circular No 01 of 2022 regarding Consolidated Operating Instructions on Market Operations, the tenor of Short-Term Repo and Reverse Repo auctions shall be:

• 14 days only

• Overnight only

• Overnight to 7 days

• Overnight to 14 days

Payment and Settlement Systems Circular No. 02 of 2025 imposed maximum limits on CEFT transactions done through the LankaPay Online Payment Platform (LPOPP). What is the per transaction limit for fund transfers to the Sri Lanka Customs?

• LKR 5.0 million

• LKR 10.0 million

• LKR 20.0 billion

• LKR 20 million

Section 18, of Circular No. 01 of 2022 issued by the CBSL's Department of Domestic Operations states that, in the event that a Dealer Direct Participant (DDP) is found to have used third party securities for ILF, such DDP shall be charged a penal interest rate. What is the rate of interest charged for facilities up to LKR 1.0 billion?

• 2.0% per month

• 2.0% per day

• 2.5% per day

• 2.5% per annum

General direction No 01 of 2022 was issued on account of the payments and settlements Act No 8 of 2005. Is the following statement True or False?

As per the direction, a SLIPS participant can operate and participate in a national level interbank payment and clearing system which clears retail payments.

• True

• False

As per DOD circular No 01 of 2022 regarding Consolidated Operating Instructions on Market Operations, section 22 deals with unscheduled bank holidays. If any transaction falls on an unscheduled holiday, any obligation should be fulfilled on:

• The immediately following business day

• A day mutually agreed to by the respective parties

• On a date instructed by CBSL

• The transaction will automatically be cancelled