Regulatory Alerts2022-05-19 | OrderCentral Bank of Sri Lanka Order on 100% Cash Margin Deposit for Letters of Credit
The Monetary Board of the Central Bank of Sri Lanka has directed all Licensed Commercial Banks to maintain a 100 percent non-interest-bearing cash margin deposit for Letters of Credit issued for importing goods listed in the attached schedule. This requirement applies to the total invoice value, prohibits banks from granting advances to cover these margins, and restricts value increases on existing Letters of Credit unless fully covered by the new deposit. The directive takes immediate effect and operates in addition to any other existing import regulations.
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