New SL Rupee currency option from BOC
View(s):Bank of Ceylon(BOC) which celebrates 75 years of service to the country has introduced its first structured derivative product through the launch of Sri Lankan Rupee Currency Options.
Seen here left: Ruwan Cooray (Group Financial Consultant) - Sierra Cables, D.S. Panditha (Managing Director) - Sierra Cables, W.A.P. Perera (Chairman - Sierra Cables), Air Chief Marshal Harsha Abeywickrama- Chairman Bank of Ceylon, D.M. Gunasekara - General Manager Bank of Ceylon and P.A. Lionel (Senior DGM - International, Treasury and Investment).
“Introducing the LKR currency option is another step in the right direction, encouraging clients to think beyond traditional foreign exchange risk hedging mechanisms. Currency options structured in-house, mainly focusing on delivering better solutions for client’s requirements enable them to transfer their portfolio foreign exchange risk to the bank and peacefully continue to concentrate on their businesses,” the bank said.
To coincide with the anniversary celebrations of the bank, the BOC Treasury Division structured a derivative solution for one of its long standing corporate clients M/s Sierra Cables PLC. The BOC formulated a USD-LKR Currency Option, which will allow the client to transfer exchange rate risk to the bank and at the same time have greater flexibility on the market rates than the traditional forward exchange contract. “The bank was able to achieve this challenging objective with the guidance of the Senior Deputy General Manager – International, Treasury and Investment and the President of the Sri Lanka Forex Association P.A. Lional and his experienced treasury team,” the bank said in a statement.