This module will not be further enhanced. Support is limited to defect fixing only.

Introduction to Trade Finance

As per the Sri Lanka Foreign Exchange Regulations Act 12 of 2017, banks are required to hold the customer margin money in the customer’s debit account currency and not in any other currency. Accordingly, while issuing a Letter of Credit (LC) for a customer, the margin money will have to be credited in the internal account denominated in the currency same as that of the customer debit account. Further, if the customer account currency and the LC transaction currency varies, then rates to be taken for conversion will be Bills Selling (BC) selling rate for the foreign currency to the Sri Lankan Rupee (LKR) and Telegraphic Transfer (TT) selling rate for the foreign currency to the foreign currency.

Letter of Credit or Shipping Guarantee Margin Refund

This functionality allows banks to collect a margin, while issuing an LC, as a specific proportion to the LC amount. The margin that has to be collected will be in the customer’s account currency as against the transaction currency. The margin will be released either in case of the LC expiry or when it is utilised by drawings under the LC. This will be applicable at the time of LC issuance and amendments also.

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