The Central Bank has introduced several measures to ease the pressure on the exchange rate and prevent financial market panic due to the COVID-19 pandemic.
Accordingly, licensed commercial banks and National Savings Bank have been directed to adopt several far reaching measures during the next three months, with immediate effect:
Measures should be taken 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.
Facilitating the importation of non-essential goods specified in Banking Act Directions has been suspended, under Letters of Credit, Documents Against Acceptance and Advance Payment.
The purchase of Sri Lanka International Sovereign Bonds by licensed banks in Sri Lanka has also been suspended.
In addition, Authorised Dealers of foreign exchange are allowed to issue foreign currency notes as travel allowance only up to a maximum of USD 5,000 (or its equivalent in other foreign currency).
The Central Bank 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
(LI)