SRI LANKA: New Rules Issued Curtailing Open Accounts Import Payments
25 May 2022
Importing goods to Sri Lanka through open account payment terms or consignment account terms has been banned by the Ministry of Finance effective 20 May 2022, according to a 9 May press release.
According to the new Imports and Exports Control Act regulations published in the government gazette on 6 May 2022, importers must obtain an endorsement on a commercial invoice from their licensed bank, stating that the importers have foreign currency in the appropriate account to settle payments. The endorsed invoice should be submitted to Sri Lankan customs upon goods clearance. Importers wishing to import goods using documents against payment terms or documents against acceptance terms, will also need an endorsement on their proforma invoice prior to the bill of lading shipped on board date.
However, open account payment terms or consignment account terms will still be allowed for exporters settling payments for importing input goods needed to manufacture goods for export; and local firms supplying goods to such exporters that receive payment in foreign currency and use it to pay for imports needed to produce such goods.
- Other Asian Countries
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