By J. Kurukulasuriya
The bank employed an independent foreign actuary K. A. Pandit of Bombay, to re-assess their defined benefit obligations. The total fair value of plan assets fell short of the present value of benefit obligations, by Rs 4,936 million. The income of the bank is exempt from tax under Section 118 of the Monetary Law Act. The bank is also exempt from VAT and Economic Service Charge (ESC) tax, but it pays withholding tax on dividend income at 10%. During the period an amount of Rs 1,986 million was spent in relation to such withholding tax, paid on interest income of Rs 13,897 million, and dividend income.
The Bank Supervision Department of the Central Bank is entrusted with the "continuous supervision and examination of banks", as per Section 28 of the Monetary Law Act, which includes resolution of "weak banks", to ensure stability of the banking sector. At the end of 2013 there were 24 licensed Commercial banks,and nine licensed specialized banks in operation. The CB intends to reduce this number, as a matter of policy.
The supervision of banks is based on the standards set out in the Basel Committee on Bank supervision, an international Body.
As at 31 March 2013 the Central Bank's exposure to foreign currencies was Rs 968,417 million as total foreign currency financial assets. This was mainly demarcated in Australian dollars (21%) and US dollars (13%). Total foreign currency liabilities were Rs 544,242 million of which 78% was in the form of SDR's – Special Drawing Rights. Net foreign currency exposure was therefore Rs 424 million.
At 31 December 2013 the bank had capital commitments of Rs 7.95 million and US dollars 1.805 million.
www.ceylontoday.lk
Ceylon FT: The Central Bank of Sri Lanka released its Annual Report for the year ended 31 December 2013 yesterday, which discloses a loss of Rs 24, 264 million, as against a gain of Rs 66,208 million in the previous period. In carrying out the audit of the Central Bank's accounts, the Auditor General required the services of a firm of Chartered Accountants in public practice, mainly to examine the compliance with International Financial Reporting Standards.
This could be attributed to the loss arising from unrealized price revaluations, which increased by Rs 27,596,358, a fall in the Central Bank's interest income of Rs 11,507 million (44%), coupled with an increase in interest expenses, net foreign exchange losses of Rs 1,577 million over the previous period, and fall in 'other income'.
The bank incurred a net gain of Rs 4,219 million as sterilization gain (2012 - Rs 1,695 million), in its activities to absorb excess liquidity in the market.
The bank's overall salaries and wages bill showed a significant increase. Salaries and wages increased 9.5 % to Rs 3,138 million, and 'additional contributions to Post Employment Benefit Plan Costs'were up about 477% to Rs 1,988 million. Bank employees are entitled to staff loans at concessionary interest rates. The bank also operates five defined benefit plans for employees, who joined before 1 January 1998. The cost of benefits is wholly borne by the bank. It also has a post- employment medical benefit scheme for expenses incurred by retired employees.
The bank incurred a net gain of Rs 4,219 million as sterilization gain (2012 - Rs 1,695 million), in its activities to absorb excess liquidity in the market.
The bank's overall salaries and wages bill showed a significant increase. Salaries and wages increased 9.5 % to Rs 3,138 million, and 'additional contributions to Post Employment Benefit Plan Costs'were up about 477% to Rs 1,988 million. Bank employees are entitled to staff loans at concessionary interest rates. The bank also operates five defined benefit plans for employees, who joined before 1 January 1998. The cost of benefits is wholly borne by the bank. It also has a post- employment medical benefit scheme for expenses incurred by retired employees.
The bank employed an independent foreign actuary K. A. Pandit of Bombay, to re-assess their defined benefit obligations. The total fair value of plan assets fell short of the present value of benefit obligations, by Rs 4,936 million. The income of the bank is exempt from tax under Section 118 of the Monetary Law Act. The bank is also exempt from VAT and Economic Service Charge (ESC) tax, but it pays withholding tax on dividend income at 10%. During the period an amount of Rs 1,986 million was spent in relation to such withholding tax, paid on interest income of Rs 13,897 million, and dividend income.
The Bank Supervision Department of the Central Bank is entrusted with the "continuous supervision and examination of banks", as per Section 28 of the Monetary Law Act, which includes resolution of "weak banks", to ensure stability of the banking sector. At the end of 2013 there were 24 licensed Commercial banks,and nine licensed specialized banks in operation. The CB intends to reduce this number, as a matter of policy.
The supervision of banks is based on the standards set out in the Basel Committee on Bank supervision, an international Body.
As at 31 March 2013 the Central Bank's exposure to foreign currencies was Rs 968,417 million as total foreign currency financial assets. This was mainly demarcated in Australian dollars (21%) and US dollars (13%). Total foreign currency liabilities were Rs 544,242 million of which 78% was in the form of SDR's – Special Drawing Rights. Net foreign currency exposure was therefore Rs 424 million.
At 31 December 2013 the bank had capital commitments of Rs 7.95 million and US dollars 1.805 million.
www.ceylontoday.lk
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