Regulatory Alerts2015-10-29 | 35-01-005-0010-19Margin Requirements Against Letters of Credit for Importation of Motor Vehicles
The Central Bank of Sri Lanka mandates that licensed commercial banks require a minimum 100 percent cash margin for Letters of Credit used to import motor vehicles listed in Schedule A. This directive, effective from 30 October 2015 until 1 December 2015, prohibits banks from granting advances to customers to meet these margin requirements and restricts value increases on existing Letters of Credit. Banks must endorse relevant invoices to confirm compliance with the margin deposit conditions imposed by this circular.
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