Sri Lanka seeks manager for central counterparty project

Sri Lankan Police forming a human chain in parliament to protect the Speaker and enable a vote.

Dec 02, 2013 (LBO) – Sri Lanka is seeking a manager and consultant to establish a central counterparty for financial transactions, which is expected to minimize credit risks in settling financial transactions. At the moment listed private securities and government debt are cleared and settled through independent mechanisms.

An expression of interest was jointly called by the Central Bank, Securities and Exchange Commission, Colombo Stock Exchange and LankaClear (Pvt) Ltd, the interbank clearing house.

The central bank issues Sri Lanka government debt in an agency capacity and the SEC regulates privately issued debt.

A newspaper advertisement called for a consultant cum project manager “for the establishment of a Central Counterparty (CCP) and implementation of a clearing and settlement system for facilitation of transaction in domestic financial markets.”

The EOI closes on January 31.