A+new+margin+deposit+requirement+on+vehicle+imports
Thursday, 20 September 2018 - 10:55
A new margin deposit requirement on vehicle imports
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The Central Bank of Sri Lanka Monetary Board has imposed, with immediate effect, a 100 per cent margin deposit requirement against Letters of Credit opened with the commercial banks for the import of motor vehicles, which are generally used for non-commercial purposes,
Accordingly, Letters of Credit for importing vehicles in the specified categories can only be carried out with a minimum cash margin of 100 per cent.

The decision to impose the margin deposit requirement is based on recent developments which, if not addressed, could threaten macroeconomic stability, which includes the recent global financial market volatility and generalised pressure on currencies of emerging market economies, and the Continued importing of an excessive number of motor vehicles, partly driven by unwarranted speculation on future exchange rate movements, interest rates movements and budgetary measures.
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