Regulatory Alerts2022-05-19 | Banking Act Directions No. 03 of 2022Margin Requirements Against Imports
The Central Bank of Sri Lanka mandates that licensed commercial banks and the National Savings Bank maintain a 100 percent non-interest-bearing cash margin on specified imports under Documents against Acceptance, Payment, and Letter of Credit terms. Banks must secure these margin deposits at document release or endorsement without granting loan facilities to importers, applying the requirement to the total invoice value even when mixed with non-covered goods. These measures take immediate effect until further notice to preserve exchange rate stability and foreign currency liquidity in the banking system.
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