Regulatory Alerts2021-09-08 | Banking Act Direction No. 12 of 2021Margin Requirements Against Imports
The Central Bank of Sri Lanka mandates that licensed commercial banks and the National Savings Bank impose a 100 percent non-interest bearing cash margin on specified imports of non-essential and non-urgent goods. This requirement applies to transactions under Documents against Acceptance and Letter of Credit terms, with banks required to endorse invoices and release margins upon proof of payment and customs clearance. Banks are prohibited from granting loan facilities to cover these margin deposits, ensuring the measure directly preserves exchange rate stability and foreign currency liquidity.
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