Regulatory Alerts2018-09-19 | Circular No. 35/01/005/0010/20Margin Requirements Against Letters of Credit for Importation of Motor Vehicles
The Central Bank of Sri Lanka mandates that Licensed Commercial Banks require a minimum 100 percent cash margin for Letters of Credit used to import motor vehicles not listed in Schedule A. Banks are prohibited from granting advances to customers to meet this margin requirement and must endorse relevant invoices to confirm the deposit has been obtained. Existing Letters of Credit cannot have their values increased unless the new terms comply with these strict margin regulations.
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