Central Bank suspends import of non-essential vehicles, non-essential goods

A suspension on the import of non-essential motor vehicles, non-essential goods and a restriction on the issue of foreign currency for overseas travel, were imposed with immediate effect by Sri Lanka's Central Bank (CB) on Thursday.
These urgent measures were introduced to ease pressure on the exchange rate and “prevent financial market panic due to the COVID-19 pandemic”, the CB said in a public announcement.
Accordingly, licensed commercial banks and National Savings Bank have been directed to adopt the following measures during the next three months, with immediate effect:
1. Suspend facilitating importation of all types motor vehicles, other than those excluded specifically under Banking Act Directions No.01 of 2020, under Letters of Credit
2. Suspend facilitating importation of non-essential goods specified in Banking Act Directions No.01 of 2020, under Letters of Credit, Documents against Acceptance and Advance Payment
3. Suspend the purchase of Sri Lanka International Sovereign Bonds by licensed banks in Sri Lanka
In addition, authorised dealers of foreign exchange are only allowed to issue foreign currency notes as travel allowance up to a maximum of US$5,000 (or its equivalent in other foreign currency).
The CB said it will continue to monitor market developments and take further measures as required, while ensuring adequate liquidity in the market in order to facilitate smooth operations and sustain market confidence amidst the COVID-19 outbreak. - ENDS -