Regulatory Alerts2018-09-29 | Circular No. 35/01/005/0010/21Margin Requirements Against Letters of Credit for Importation of Motor Vehicles and Non-Essential Consumer Goods
The Central Bank of Sri Lanka mandates that Licensed Commercial Banks require a minimum 200% cash margin for importing motor vehicles not listed in Schedule A and a 100% margin for items in Schedule B. Banks are prohibited from granting advances to customers to meet these margin requirements and must endorse invoices confirming the deposit of funds. These directives apply to new and existing Letters of Credit effective from 1 October 2018, revoking previous circulars on the matter.
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