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Imposition of Administrative Penalties by the Financial Intelligence Unit (FIU) to Enforce Compliance on Financial Institutions during the Second Quarter of 2021

By virtue of the powers vested under Section 19 (1) read together with section 19 (2) of the Financial Transactions Reporting Act, No. 06 of 2006 (FTRA), financial penalties are imposed on Institutions for non-compliance with the provisions of the FTRA. The penalty may be prescribed taking into consideration the nature and gravity of relevant non- compliance of the Financial Institution.

Accordingly, as Sri Lanka’s regulator for Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT), the FIU imposed penalties, amounting to Rs. 3.0 million in total for the period from 1 April 2021 to 30 June 2021 to enforce compliance on Financial Institutions. The money collected as penalties were credited to the Consolidated Fund.

Response to the Announcement made by Moody's Investors Service

Following the announcement by Moody’s Investors Service on Sri Lanka’s Sovereign rating, the Ministry of Finance has issued a response, which can be found on the link below:

Special Publication by the Central Bank of Sri Lanka on “The 70 Year Journey of Currency Issue and Management”

The Central Bank of Sri Lanka (CBSL) has published a special publication on the history of currency used in Sri Lanka, titled “The 70 Year Journey of Currency Issue and Management” co-authored by Retired Director Communications of CBSL, Ms. Shellomi H Gunawardena and Retired Senior Manager of CBSL, Mr. W M K Weerakoon.

The authors have utilized their years of experience at the Currency Department of CBSL, in compiling this publication, to be used as a reference for bankers, students, numismatists, and others who would be interested in the history pertaining to currency in Sri Lanka. The book carries attractive colour illustrations of currency notes and coins used in Sri Lanka from ancient times with historical narratives, which also provide a glimpse of the political, economic and cultural background of the country over the past 70 years.

Release of ‘Economic and Social Statistics of Sri Lanka – 2021’ Publication

‘Economic and Social Statistics of Sri Lanka – 2021’, an annual publication of the Central Bank of Sri Lanka, is now available for public access.

Statistics Department of the Central Bank of Sri Lanka restructured the layout of the publication last year, for ease of reference, while adding more statistics to enrich its content. Accordingly, the publication consists of statistical tables categorised under eight major areas, i.e. ‘National Accounts’, ‘Economic and Social Infrastructure’, ‘Prices, Wages and Employment’, ‘External Trade and Finance’, ‘Government Finance’, ‘Money and Capital Markets’, ‘Financial Sector’ and statistics of other countries.

The publication is available in both printed and electronic versions and will be a useful collection of information for those who are interested in socio-economic statistics.

Sri Lanka Purchasing Managers’ Index - June 2021

Purchasing Managers' Indices for both Manufacturing and Services activities recovered in June.

Manufacturing activities recovered marginally during June 2021 from the adverse impacts of the third wave of the COVID-19 pandemic.

Services PMI returned to the growth territory in June 2021, recording an index value of 51.3, after declining for two consecutive months.

External Sector Performance - May 2021

The deficit in the trade account widened on a year-on-year basis for the third consecutive month in May 2021. Both exports and imports were significantly higher in May 2021 than in May 2020, mainly due to the statistical effect of pandemic related disruptions a year ago. Earnings from exports increased, while imports declined in May 2021 compared to the previous month. During the month, workers’ remittances continued to increase, while earnings from tourism remained at minimal levels. In the financial account, foreign investment in the government securities market and the Colombo Stock Exchange (CSE) recorded marginal net outflows in May 2021. Meanwhile, the Sri Lankan rupee remained broadly stable throughout the month, and gross official reserves stood at US dollars 4.0 billion by end May 2021.

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