CB further tightens noose on imports to preserve currency

The Central Bank of Sri Lanka (CBSL) announced today its decision to impose a 100 percent cash margin deposit requirement against the importation of selected goods of non-essential/non-urgent nature made under Letters of Credit and Documents against Acceptance terms with Licensed Commercial Banks and National Savings Bank, with immediate effect. 

The CBSL said that the decision, made by its Monetary Board at a meeting held yesterday, is to support the ongoing efforts to preserve the stability of the exchange rate and foreign currency market liquidity, particularly by discouraging excessive imports of speculative nature.