Fri, 01 Jul 2022 Today's Paper

Central Bank mulls regulatory exemptions for banks, corporates to borrow overseas

18 March 2016 10:45 am - 0     - {{hitsCtrl.values.hits}}

A A A

In another bid to attract the much needed foreign exchange to the country, the country’s Central Bank is considering to extend the regulatory exemptions given to banks for borrowing from foreign sources which lapsed on December 31, 2015, Mirror Business learns. This is in line with the proposal made by the Finance Minister, Ravi Karunanayake in his 2016 budget proposal to encourage local companies to borrow internationally. However, he said the borrowing companies should bear the exchange risk. “Since there is a proposal to that effect in this year’s budget (2016), as the regulator we will have to provide the necessary legal framework for the banks and other companies,” said Central Bank Deputy Governor, Dr. Nandalal Weerasinghe.

Originally, under the last regime, the budget 2013 proposed to permit all licensed commercial banks (LCBs) and corporate entities to borrow up to US $ 50 million and US $ 10 million, respectively, per annum for three years without the approval from the Exchange Control Department. This followed a circular issued to all LCBs by the Central Bank on April 17, 2013 exempting such borrowing for a period of three years from the maximum 15 percent of capital funds of a bank. On December 31, 2015, however both of the above exemptions lapsed requiring borrowers – banks or otherwise – to seek approval from the Central Bank whenever they want to borrow in foreign currency.

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.