Margin Requirements Against Letters of Credit for Importation of Motor Vehicles and Non-essential Consumer Goods

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.1:LIu 590, acorogal 01, Sex&opes dclod@cbslAk 7 bzo @toe, 2 025) 2Qe.94A elm 30, 252”33252S5 @3D25) ask.sa. 590, @2:5)3go 01, g coa5)30 ) +94 112 477036 +94 112 346287 Level 7, Tower 2 No. 30, Janadhipathi Mawata P.O. Box 590, Colombo 01, Sri Lanka 1 ww.cbsl.gov.lk @ (9=3 ®LO WLoge fi60rSDE6 U4011 ou‘dl CENTRAL BANK OF SRI LANKA 6V5rs @®@esiog 25)003 ces3F525-i@g2/325-do GlrofIg"urra/fisir Domestic Operations plimaristboth Department Circular No: 35/01/005/0010/22 26 November 2018 To: All Licensed Commercial Banks MARGIN REQUIREMENTS AGAINST LETTERS OF CREDIT FOR IMPORTATION OF MOTOR VEHICLES AND NON-ESSENTIAL CONSUMER GOODS This refers to the Circular No. 35/001/005/0010/21 dated 29 September 2018 on the above subject. Licensed Commercial Banks (LCBs) are hereby further informed that the minimum cash margin applicable for opening of Letters of Credit (LCs) through foreign currency for the importation of motor vehicles and non-essential goods will be 100 per cent. Following conditions are also applicable at the time of opening LCs through foreign currency;
I. The import bill shall be settled in foreign currency utilising the margin deposit maintained
with the bank
There shall be no under-invoicing when LCs are opened Conditions specified in the Circular No. 35/001/005/0010/21 dated 29 September 2018 Banks are required to comply with this Circular with effect from 26 November 2018 until further notice. Director Domestic Operations rriT TT in FLIT rilira TT IPTTTTflTTTT IT NTT HI ii