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2019-04-18 | Circular No. 5 of 2019

Removal of Restrictions on Opening Letters of Credit for Motor Vehicle Imports Under Concessionary Permits

The Central Bank of Sri Lanka has removed restrictions on licensed commercial and specialised banks opening letters of credit for importing motor vehicles under concessionary permits. The circular establishes staggered effective dates ranging from May to October 2019, allowing banks to process LCs based on specific permit issuance deadlines. This change simultaneously withdraws the previous September 2018 banking direction that had previously curtailed motor vehicle imports.

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CENTRAL BANK OF SRI LANKA BANK SUPERVISION DEPARTMENT

18 April 2019 | CIRCULAR | No. 05 of 2019

REMOVAL OF RESTRICTIONS ON OPENING OF LETTERS OF CREDIT (LCs) FOR IMPORTATION OF MOTOR VEHICLES UNDER PERMITS ON CONCESSIONARY TERMS

  1. Licensed commercial banks and licensed specialised banks are informed of the removal of restrictions on the opening of LCs for importation of motor vehicles under the permits on concessionary terms as follows:

    (a) Permits issued for importation of motor vehicles in terms of P.A. Circular No. 22/99, LCs may be opened on or after: (i) 01.05.2019 for permits issued on or before 31.12.2018; (ii) 01.06.2019 for permits issued in any date.

    (b) Permits issued for importation/ purchase of motor vehicles in terms of Trade and Investment Policy Circular No. 01/2018 and subsequent amendments and officers appointed to Sri Lanka Mission/ Posts abroad, LCs may be opened on or after: (i) 01.06.2019 for permits issued on or before 30.09.2018; (ii) 01.07.2019 for permits issued on or before 30.11.2018; (iii) 01.08.2019 for permits issued on or before 28.02.2019; (iv) 01.09.2019 for permits issued on or before 30.06.2019; (v) 01.10.2019 for permits issued in any date.

  2. Direction No. 2 of the Banking Act Directions No. 06 of 2018 dated 28.09.2018 on Measures to Curtail imports of Motor Vehicles is withdrawn by Banking Act Direction No. 02 of 2019 dated 18 April 2019.

[Signature] J P Gamalath Actg. Director of Bank Supervision

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