New order to limit vehicle imports

The Central Bank of Sri Lanka has imposed a 100% margin deposit requirement against Letters of Credit (LCs) opened with the commercial banks for the import of motor vehicles, generally used for non-commercial purposes, with immediate effect.

This decision has been taken to curb non-essential imports of motor vehicles, and ease undue pressure on the current account of the balance of payments (BOP) and the exchange rate in a situation when the dollar is rising rapidly and the rupee is declining at an alarming rate.

Due to the concessions given by the government, during the past few months, thousands of vehicles had been imported into the country, it is reported.