Commercial banks given nod to finance fuel purchases | Daily News
In proportion to foreign exchange inflows :

Commercial banks given nod to finance fuel purchases

Tourist entities could accept foreign exchange:






The Central Bank of Sri Lanka (CBSL) has reached an agreement with licenced commercial banks, allowing them to bear the financing of essential import bills for fuel purchases in proportion to their foreign exchange inflows.

CBSL Governor Nivard Cabraal addressing the Monetary Policy Review press conference at the Central Bank yesterday said licensed commercial banks too would be bearing the financing and the arrangement of the financing of certain essential goods.

Governor Cabraal said, “so that essential goods will not be put as a burden to the State banks only. Furthermore, we would be negotiating with them and they will be taking part of those bills as well. So that there will be greater stability in the overall external sector.” The Central Bank is also mandating all registered tourist establishments that tourist hotels only accept payments in US dollars,in respect of services rendered to persons resident outside Sri Lanka.

“We would ask them to either pay with a credit card or they would be paying in the currency of a foreign nation at the time of check-out.”

Furthermore, the Central Bank has extended the payment of an additional Rs. 8. per US dollar for workers’ remittances paid in addition to the incentive of Rs. 2 per US dollar offered under the “Incentive Scheme on Inward Workers’ Remittances” until April 30, 2022, reimburse the transaction cost borne by Sri Lankan migrant workers through the payment of Rs. 1,000 per transaction, when remitting money to rupee accounts via licensed banks and other formal channels with effect from February 1, 2022 and introduce higher interest rates for both foreign currency and rupee denominated deposits of migrant workers.

Accordingly Rs.2 would be paid by the Government and Rs. 8 will be paid by the Central Bank. Cabraal said the Rs.1,000 cost will be borne by the Central Bank.

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