Regulatory Alerts2018-11-26 | Circular No: 35/01/005/0010/22Margin Requirements Against Letters of Credit for Importation of Motor Vehicles and Non-essential Consumer Goods
The Central Bank of Sri Lanka mandates that Licensed Commercial Banks require a 100 percent minimum cash margin for opening foreign currency Letters of Credit for importing motor vehicles and non-essential consumer goods. This directive, effective from 26 November 2018, requires that import bills be settled using the margin deposit and prohibits under-invoicing when such Letters of Credit are opened. Banks must adhere to these conditions until further notice, building upon previous regulations issued in September 2018.
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