Regulatory Alerts2021-09-08 | OrderCentral Bank of Sri Lanka Order on Cash Margin Deposit Requirements for Letters of Credit
The Monetary Board of the Central Bank of Sri Lanka directs all Licensed Commercial Banks to require 100 percent non-interest-bearing cash margin deposits for opening letters of credit for goods listed in the attached schedules. This mandate applies to the total invoice value, prohibits banks from granting advances to meet these margin requirements, and restricts increases in existing letter of credit values unless fully covered by the required deposits. The order takes immediate effect and operates in addition to any other existing importation requirements under Sri Lankan law.
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