SRI LANKA: 100% Deposit Required for Import-Related Letters of Credit
24 September 2021
A 100% cash margin deposit requirement has been imposed on all letters of credit relating to the import of 600 items or more. Announced by the Central Bank of Sri Lanka (CBSL), the move forms part of an ongoing bid to bolster the country’s dwindling foreign currency reserves by discouraging the import of non-essential items.
Among the items currently designated as non-essential are the following: wine; mineral water; beer; chocolates; butter; fruits; fruit juices; oats; dairy products; refrigerators; washing machines; air conditioners; kitchenware; tableware; carpets; cosmetics; mobile phones; raincoats, watches; and footwear.
As of July this year, the country’s foreign exchange reserves stood at US$2.8 billion, well down on the US$7.5 billion recorded for November 2019.
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