LNP – CBSL decides to distribute financing of essential import bills for fuel purchases among licensed banks

In view of strengthening macroeconomic stability given the current and expected macroeconomic developments, the Monetary Board of the Central Bank of Sri Lanka has decided to distribute the financing of essential import bills for fuel purchases among the licensed banks in proportion to their foreign exchange inflows.

In a press release, the CBSL said the Monetary Board also decided to increase the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 50 basis points each, to 5.50 per cent and 6.50 per cent, respectively.

It was also decided mandate all registered tourist establishments to accept foreign exchange only in respect of services rendered to persons resident outside Sri Lanka.

Further, the Monetary Board decided to extend the payment of an additional Rs. 8.00 per US dollar for workers’ remittances paid in addition to the incentive of Rs. 2.00 per US dollar offered under the “Incentive Scheme on Inward Workers’ Remittances” until April 30, 2022, reimburse the transaction cost borne by Sri Lankan migrant workers through the payment of Rs. 1,000 per transaction, when remitting money to rupee accounts via licensed banks and other formal channels with effect from February 01, 2022 and introduce higher interest rates for both foreign currency and rupee denominated deposits of migrant workers.

These crucial decisions have been made at a meeting held yesterday.