Page 140 - annual_report_2024

138 CA Sri Lanka Integrated Annual Report 2024

Notes to the Financial Statements Contd.

31.1.1 Maximum exposure to credit risk
The maximum risk exposure of financial assets which are generally subject to credit risk are equal to their carrying amounts.

Carrying Value as at 31 December 2024 2023
Rs.’000 Rs.’000

Fixed deposits 272,852 278,360
Treasury bonds 2,163,946 1,681,519
Loans and receivables 256,873 213,841
Treasury bill re-purchase agreements 155,235 49,017
Maximum exposure to credit risk 2,848,906 2,222,737

Long term Fixed Deposit value of Rs. 150Mn has been taken when calculating the maximum exposure to the credit risk.

31.1.2 Risk response to credit risk
To minimise the credit risk fixed deposits are held with state owned banking institutions.

Carrying Value as at 31 December 2024 2023
Rs.’000 Rs.’000

Government securities and related institutions
Treasury bonds 2,163,946 1,681,519
Reverse re-purchase agreements 155,235 49,017
Fixed deposits 272,852 278,360

Others
Loans and receivables 256,873 213,841
Maximum exposure to credit risk 2,848,906 2,222,737

31.2. Liquidity risk
Liquidity risk is the risk that the Institute may not have sufficient liquid funds to meet its obligations when they fall due.

The Institute is managing the liquidity risk by ensuring that there will always be sufficient liquidity to meet its liabilities when due
without incurring unacceptable damages to the Institute’s reputation.