Central Bank of Sri Lanka Order on Cash Margin Deposit Requirements for Letters of Credit

08 September 2021 To: All Licensed Commercial Banks ORDER MADE BY THE MONETARY BOARD OF THE CENTRAL BANK OF SRI LANKA IN TERMS OF THE PROVISIONS OF SECTION 103 OF THE MONETARY LAW ACT, NO. 58 OF 1949 ON MAINTAINING CASH MARGIN DEPOSIT REQUIREMENTS AGAINST LETTERS OF CREDIT

1. Licensed Commercial Banks (LCBs) are hereby directed that with immediate effect, Letters of Credit (LCs) shall not be opened by LCBs for the importation of goods specified in the Schedule attached hereto, unless such LCs are covered by 100 per cent non-interest-bearing cash margin deposit maintained at the respective LCBs at the time of opening the LC.
2. LCBs are further directed that the following conditions shall also be applicable for the importation of goods covered by this Order. a) The cash margin deposit requirements shall be on the total value of the invoice, notwithstanding the fact that the same invoice includes goods which are not covered by this Order. b) In the case of existing LCs covering the importation of goods covered by this Order, no increase in the value of such LCs shall be permitted by LCBs unless such increase is covered by the cash margin deposits as required in (1) above. c) LCBs shall not grant any advances to their customers for the purpose of enabling such customers to meet the minimum cash margin deposit requirement imposed by this Order. d) LCBs shall endorse the relevant invoice certifying whether the cash margin deposit as per this Order has been maintained. e) The margin deposit shall be released on the production of documentary evidence on payments through the banking channels in Sri Lanka and Customs documents relating to clearance of imports.
3. The provisions of this Order shall have effect in addition to any requirement in force for the time being and such other requirements that may be introduced in terms of any law in respect of importation of goods. Dr. R A Anil Perera Director/Domestic Operations

Schedule 1 No. HS code 1 030441 2 030449 3 030451 4 030461 5 030462 6 030469 7 030474 8 04029990 9 040310 10 040390 11 040510 12 040620 13 040630 14 040690 15 08041020 16 08051010 17 08052110 18 080610 19 080620 20 080810 21 08109090 22 110412 23 110419 24 110422 25 110423 26 110429 27 110430 28 110510 29 110520 30 110710 31 110720 32 110814 No. HS code 33 180620 34 180631 35 180632 36 180690 37 190211 38 190219 39 190220 40 190230 41 190240 42 190410 43 190420 44 20091190 45 200971 46 200979 47 200990 48 220210 49 220291 50 22029910 51 22029930 52 22029940 53 22029951 54 22029959 55 22029961 56 22029969 57 22029970 58 22029991 59 22029999 60 22030010 61 22030020 62 22030090 63 220410 64 220421 No. HS code 65 220510 66 220820 67 220830 68 22084010 69 220850 70 220860 71 220870 72 240210 73 24022050 74 24022060 75 24031990 76 24039990 77 33030010 78 33030021 79 33030022 80 33030029 81 330410 82 330420 83 330430 84 330491 85 330499 86 330510 87 330520 88 330530 89 330590 90 330610 91 330690 92 330710 93 330720 94 330730 95 330749 96 33079090 No. HS code 97 34011920 98 34013020 99 340600 100 40111010 101 40111090 102 40112011 103 40112019 104 401130 105 401170 106 40118010 107 40118090 108 40129010 109 40129090 110 401692 111 420100 112 420211 113 420212 114 420219 115 420221 116 420222 117 420229 118 420231 119 420232 120 420239 121 420291 122 420292 123 420299 124 420310 125 420321 126 420329 127 420330 128 420340

Schedule 2 No. HS code 129 42050010 130 430400 131 44219990 132 570292 133 570320 134 570330 135 570500 136 610120 137 610130 138 610190 139 610210 140 610220 141 610230 142 610290 143 610310 144 610322 145 610323 146 610329 147 610331 148 610332 149 610333 150 610339 151 610341 152 610342 153 610343 154 610349 155 610413 156 610419 157 610422 158 610423 159 610429 160 610431 No. HS code 161 610432 162 610433 163 610439 164 610442 165 610443 166 610444 167 610449 168 610452 169 610453 170 610459 171 610461 172 610462 173 610463 174 610469 175 610510 176 610520 177 610590 178 610610 179 610620 180 610690 181 610711 182 610712 183 610719 184 610721 185 610729 186 610791 187 610799 188 610811 189 610819 190 610821 191 610822 192 610829 No. HS code 193 610831 194 610832 195 610839 196 610891 197 610892 198 610899 199 610910 200 610990 201 611011 202 611012 203 611019 204 611020 205 611030 206 611090 207 611120 208 611130 209 611190 210 611211 211 611212 212 611219 213 611231 214 611239 215 611241 216 611249 217 611300 218 611420 219 611430 220 611490 221 611510 222 611529 223 611530 224 611594 No. HS code 225 611595 226 611596 227 611599 228 611610 229 611691 230 611692 231 611693 232 611699 233 611710 234 61178010 235 61178020 236 620111 237 620112 238 620113 239 620119 240 620192 241 620193 242 620199 243 620211 244 620212 245 620213 246 620219 247 620291 248 620292 249 620293 250 620299 251 620311 252 62031290 253 62031990 254 62032290 255 62032390 256 62032990

Schedule 3 No. HS code 257 620331 258 62033290 259 62033390 260 62033990 261 620341 262 62034290 263 62034390 264 62034990 265 62041290 266 62041390 267 62041990 268 62042290 269 62042390 270 62042990 271 620431 272 62043290 273 62043390 274 62043990 275 620441 276 62044290 277 62044390 278 62044490 279 62044990 280 62045290 281 62045390 282 62045990 283 620461 284 62046290 285 62046390 286 62046990 287 62052090 288 62053090 No. HS code 289 62059090 290 62061090 291 620620 292 62063090 293 62064090 294 62069090 295 620711 296 620719 297 62072290 298 62079190 299 62079990 300 62081190 301 62082190 302 62082290 303 62082990 304 62089190 305 62089290 306 62089990 307 620920 308 620930 309 620990 310 621010 311 621020 312 621030 313 621040 314 621050 315 621111 316 621112 317 621120 318 62113290 319 62113390 320 62113990 No. HS code 321 62114219 322 62114292 323 62114299 324 62114319 325 62114392 326 62114399 327 62114919 328 62114992 329 62114999 330 621210 331 621220 332 621230 333 621290 334 62132090 335 62139090 336 62141090 337 62144090 338 62149090 339 621510 340 621520 341 621590 342 621600 343 630110 344 630120 345 630130 346 630140 347 630190 348 630210 349 63022190 350 63022290 351 63022990 352 63023190 No. HS code 353 63023290 354 63023990 355 630240 356 63025190 357 63025990 358 63026090 359 63029190 360 63029390 361 63029990 362 630312 363 630319 364 630391 365 630392 366 630399 367 630411 368 63041990 369 630420 370 630491 371 63049290 372 63049390 373 63049990 374 63051090 375 630520 376 630532 377 630533 378 630539 379 630590 380 630612 381 630619 382 630622 383 630629 384 630630

Schedule 4 No. HS code 385 630640 386 630690 387 630710 388 630720 389 640212 390 64021910 391 64021919 392 640220 393 640291 394 640299 395 640312 396 64031910 397 64031919 398 640320 399 640340 400 640351 401 640359 402 640391 403 640399 404 640411 405 640419 406 640420 407 640510 408 640520 409 640590 410 650100 411 650200 412 650400 413 65050010 414 65050090 415 65069110 416 65069190 No. HS code 417 65069910 418 65069990 419 650700 420 660110 421 660191 422 660199 423 670300 424 670411 425 670419 426 670420 427 670490 428 69120010 429 701310 430 701322 431 701328 432 701333 433 701337 434 701341 435 701342 436 701349 437 701391 438 70139990 439 701810 440 701820 441 732111 442 732112 443 732119 444 732181 445 732182 446 732189 447 732310 448 732391 No. HS code 449 732392 450 732393 451 732394 452 732399 453 73241010 454 73241090 455 732421 456 732429 457 732490 458 76151020 459 76151090 460 821599 461 830520 462 830629 463 841451 464 841459 465 84151021 466 84151022 467 84151023 468 84151024 469 84151029 470 84151032 471 84151033 472 84151034 473 84151035 474 84151039 475 84158190 476 84158290 477 84158390 478 84159019 479 84159029 480 84181090 No. HS code 481 84182190 482 84182920 483 84182990 484 84501110 485 84501131 486 84501132 487 84501133 488 84501134 489 84501139 490 84501141 491 84501142 492 84501143 493 84501144 494 84501149 495 84501210 496 84501231 497 84501232 498 84501233 499 84501234 500 84501239 501 84501910 502 84501931 503 84501932 504 84501933 505 84501934 506 84501939 507 850811 508 850940 509 850980 510 851010 511 851020 512 851030

Schedule 5 No. HS code 513 85131010 514 85131090 515 851610 516 851621 517 851629 518 851631 519 851632 520 851633 521 851640 522 851650 523 85166010 524 85166090 525 851671 526 851672 527 85167910 528 85167920 529 851680 530 851711 531 85171210 532 85171220 533 85171290 534 851718 535 85258090 536 852712 537 852713 538 852719 539 852721 540 852729 No. HS code 541 852791 542 852792 543 852799 544 85285990 545 852869 546 85287120 547 85287190 548 85287210 549 85287231 550 85287232 551 85287233 552 85287234 553 85287235 554 85287236 555 85287239 556 85287241 557 85287249 558 85287291 559 85287299 560 85287320 561 85287390 562 85291010 563 85291090 564 852990 565 85392110 566 85392190 567 85392210 568 85392220 No. HS code 569 85392290 570 853929 571 85392910 572 85392990 573 85393110 574 853949 575 853950 576 853990 577 900410 578 910121 579 910211 580 910219 581 910221 582 910229 583 910521 584 920290 585 920710 586 920890 587 94012090 588 94013090 589 94017190 590 94019090 591 94032090 592 94039090 593 94051010 594 94051020 595 94051090 596 94052010 No. HS code 597 94052020 598 94052090 599 940530 600 94054010 601 94054020 602 94054030 603 94054040 604 94054090 605 94055010 606 94055020 607 94055090 608 940560 609 940591 610 940592 611 94059910 612 94059990 613 95030010 614 95030030 615 95030050 616 95030070 617 95030090 618 950420 619 950440 620 950450 621 95049090 622 950510 623 961590