Japanese banks refuse to confirm Sri Lankan banks letters of credit

Despite the government granting permission to import vehicles to Sri Lanka, a problem has arisen regarding the import of Japanese vehicles, the Vehicle Importers Association of Sri Lanka (VIAL) said.

VIAL president, Indika Sampath Merenchige, pointed out that Japanese banks are refusing to confirm letters of credit issued by Sri Lankan banks.

He said that importers have been relying on their own personal goodwill and connections to import vehicles.

He also stated that although there are alternative methods through banks to overcome this situation, it may incur additional costs leading to an increase in vehicle prices.

Related News:

Second-hand vehicle prices soar as pre-orders get cancelled