CB imposes 100% Margin Deposit Requirement against some imports

The Monetary Board of the Central Bank of Sri Lanka, at its meeting held on September 8 has decided to impose a 100 per cent cash margin deposit requirement against the import 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 decision to impose the cash margin deposit requirement is expected 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, the Central Bank said in a media release on Thursday.

Items affected include mobile phones and fixed phones, home appliances such as fans, TVs, refrigerators, washing machines and digital cameras, clothing and accessories, household and furniture items, air conditioners, fruits such as fresh apples, grapes and oranges, cosmetics and toiletries, beverages such as beer and wine, other food and beverages such as cereal preparations, starches, chocolates, cheese and butter, and other non-food consumables such as musical instruments, tobacco products, toys, stationery.