CB eases pressure on exchange rate
The Central Bank of Sri Lanka (CB) has allowed greater flexibility on
the exchange rate and adopted a number of prudential measures to ease
the pressure on the exchange rate to depreciate.
All licensed commercial banks have been directed not to effect any
pre payments of import bills, said Director, Institute of Policy Studies
of Sri Lanka Dr. Saman Kelegama.
He was speaking on the Global Financial Crisis and the Impact on the
Sri Lankan Economy at a seminar organized by the CMA in Colombo
He said that the CB has instructed licensed commercial banks to
obtain a 100 per cent margin of the import value of any letters of
credit opened for 44 categories of imported items and to increase the
margin deposit requirement for the importation of vehicles from 100 per
cent to 200 per cent.
Authorised dealers too have been instructed that forward contracts
for the purchase of foreign exchange should not only be for a period of
up to 180 days but also only for the purpose of payments and receipts in
foreign exchange in respect of trade in goods and services. Any
cancellation of a forward foreign exchange contract by the customer
should be subject to a penalty at least to fully compensate the loss
arising therefrom to the authorised dealer.