Jun 16, 2021

BOC asks HSBC (Singapore) to cancel LCs on controversial vehicle imports

The Bank of Ceylon (BOC) has requested the Hongkong and Shanghai Banking Corporation (HSBC) in Singapore to cancel the 06 Letters Of Credit (LCs) that were opened on the 22nd of April to import 399 vehicles including 228 luxury SUVs.

The LCs were opened to remain in effect until the 30th of May and were opened by a Chief Manager of the Development Banking Division at the BOC as per a request made by the Finance Ministry.

On the 05th of May, a cabinet memorandum was produced to import 399 vehicles under Rs. 3.7 Billion leasing facility offered by the Bank of Ceylon.

However, on the 24th of May, the Cabinet of Ministers decided to suspend even a limited number of vehicle imports.

Environment Minister Mahinda Amaraweera told reporters that newly elected MPs have made requests from the speaker for vehicles and the speaker thereafter had forwarded the request to the Government.