Leasing facility limit for vehicle raised to 90%

  The maximum limit of the facility for Sri Lankan vehicle leasing will be increased to 90 per cent from 70 per cent with effect from Monday October 5, Finance Minister Ravi Karunanayake announced at a media conference on Friday. This was an unusual move as it was only on September 14 that the Central Bank imposed limits on banks and finance companies in which loans and leases of vehicles should not excess 70 per cent of the value of the vehicle compared to 100 per cent earlier. The move was to stem the flow of imports which was eating into foreign reserves. The Government has also re-imposed a 100 per cent margin deposit requirement against the LCs opened with the commercial banks for vehicle imports, he said adding that LCs for the importation of vehicles cannot be opened in commercial banks without a minimum cash margin of 100 per cent and no interest could be charged. (Bandula)