SimCorp selected by CBSL for front-to-back reserve management

By Edil Corneille

Today, Copenhagen-based SimCorp, a provider of integrated, front-to-back, multi-asset investment management solutions and services to buy-side institutions, announced that the Central Bank of Sri Lanka (CBSL) has signed an agreement with SimCorp Asia Pacific. The central bank will implement SimCorp Dimension, a front-to-back investment platform to manage the investment operation of the country’s official reserves. The license agreement signed in September 2020 aims to deliver the CBSL with increased operational resilience, improved automation and strong support of the bank’s investment strategy.

Oliver Johnson, Senior Vice President and Managing Director, SimCorp Asia-Pacific enthused, “We are pleased to welcome the Central Bank of Sri Lanka within our global client community. With an integrated front-to-back, multi-asset platform, continued innovation and a deep understanding of central banking needs, we have steadily grown the number of global central banks in our client community. The partnership with the Central Bank of Sri Lanka is a testament to this commitment and we are confident that our consolidated approach to investment management, will meet the bank’s long-term strategy and deliver the operational resilience it requires to grow prosperously.”

The country’s central bank is the latest who has chosen SimCorp to tackle issues arising out of legacy technology amid increasing market complexity. The implementation of SimCorp Dimension is part of a long-term strategy to strengthen the bank’s operational efficiency and risk management while laying the foundation for the future support of its foreign investment strategies.

The operational overhaul sees CBSL benefit from a highly standardised solution for the smooth running of its reserve operations and enhanced risk monitoring. A key feature of the selection is the implementation of SimCorp’s integrated Investment Book of Record (IBOR). IBOR will serve the central bank with a single source of accurate and timely data and a unified view across asset classes, thereby empowering teams across the organisation with full transparency for stakeholder reporting.

The mandate will see SimCorp’s automated investment solution streamline the bank’s investment management. This includes advanced front office functionality, comprehensive compliance and performance, through to exhaustive investment accounting, covering IFRS standards. The solution will handle all of the bank’s internally and externally managed funds and coverage of a wide range of instruments, from fixed income to money markets and gold. Increased automation throughout the investment lifecycle will create improved Straight Through Processing (STP) for the bank, eliminating data errors and reducing manual intervention, so that its resources can focus on more high-value tasks.