Sunday Times E-Paper

Overseas banks refuse to honour Sri Lankan LCs

An industry source told the Business Times that one state bank has over US$ 3 billion in export proceeds. He said that it is not a matter of ‘not having’ US dollars, but the banks are holding onto the dollars as the exporters don't want to lose out on the exchange rate.

This also has a lot to do with commercial banks making supernormal profits over the past few months solely on the exchange rate. One bank has made over $3 billion in just three weeks, a banking industry source told the Business Times.

The inward remittances too has dropped by 30 percent which has aggravated the forex crisis in the country. A second economist noted that a thriving black market has many touts mushrooming and buying dollars at Rs. 225 levels and selling them at Rs. 250 – 260. “Those waiting to go overseas are willing to pay even Rs. 1000 (per dollar) to buy dollars. This is creating a large informal market.”

NEWS

en-lk

2021-09-26T07:00:00.0000000Z

2021-09-26T07:00:00.0000000Z

https://sundaytimes.pressreader.com/article/282329683089058

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