CBSL issues directives to commercial banks & NSB

COLOMBO (News1st): The Central Bank of Sri Lanka has issued a set of directives to commercial banks and the National Savings Bank to ease the pressure on the exchange rate caused by the COVID-19 outbreak. Among the directives issued by the monetary authority were to suspend facilitating the importation of ; 1) Motor vehicles, other than the items specified in Schedule A of Annex 1 under Letters of Credit 2) Non-essential goods, specified in Schedule B of Annex 1, under Letters of Credit, Documents Against Acceptance and Advance Payment. The Central Bank also instructed commercial banks in Sri Lanka and the National Savings Bank to suspend the purchase of Sri Lanka's International Sovereign Bonds. The Central Bank also directed authorised dealers of foreign exchange are allowed to issue foreign currency notes as travel allowance only up to a maximum of 5,000 dollars or its equivalent in other foreign currency. The Central Bank also 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.