Sri Lanka relaxes cash margin deposits requirement on non-essential/non-urgent imports

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Governor Ajith Nivard Cabraal says that the Central Bank of Sri Lanka will discontinue the cash margin deposits requirement on non-essential and non-urgent imports.

He revealed this today while speaking during an event to unveil the CBSL’s ‘Six-Month Road Map for Ensuring Macroeconomic and Financial System Stability’.

On September 09, the Central Bank imposed a 100 per cent 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.

“We know that several people have been undergoing various difficulties as a result. That would be lifted from today,” the governor said.

Mr. Cabraal said that the prime minister himself had mentioned that this should be done and that he believes there have been a lot of people who have been affected by that move.

“Although it did serve the purpose at the time it was imposed and it did have the necessary support for the balance of payments at that time.”

“We believe now with the current inflows we are envisaging as well as the steps we are taking, we would be a in a position to relax that with immediate effect,” he said.

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