Issuing of Letters of Credit (for Commercial and Non Commercial purposes)
A documentary Letter of Credit ( referred to as L/C) is an undertaking issued by a Bank (Issuing Bank), on behalf of an applicant (the buyer/importer), to the beneficiary (seller/exporter) to pay for goods or services provided that the beneficiary presents documents which comply with the terms and conditions of the credit.
Special Types of Import L/Cs:
Revolving Documentary Credit
A revolving credit is one that allows the amount to revolve on the same terms and conditions as the original credit, following the occurrence of an event that will trigger a revolvement.
Transferable Documentary Credit
Allows the Beneficiary to transfer the L/C to one or more second beneficiaries (as per the credit terms and conditions). In transferable credit the beneficiary is not required to have a credit line/facility with the bank, the beneficiary can benefit by coordinating the trade transaction between the applicant and the supplier.
Standby Letter of Credit
Standby Letter of Credit are used to underwrite a wide variety of commercial and financial operations and act as a guarantee if there is a failure to perform a contractual undertaking.
Arranging LC confirmations through our global network at competitive rates
A confirmed LC constitutes a definite undertaking of the Confirming Bank, in addition to that of the Issuing Bank, to pay for goods or services provided that the beneficiary presents documents which comply with the terms and conditions of the credit.
Handling of Import Bills on Collection
Documentary collection is an instruction to a “Collecting Bank” to deliver documents to the buyer against payment or acceptance of a bill of exchange.
Issuance of Shipping Guarantees
In case of a delay in receipt of original bill of lading, a Guarantee may be issued in favour of the carrier, to obtain release of goods, without presentation of an original Bill of Lading.
Endorsement of Advance Documents
Allows the buyer or importer to take possession of the goods against documents received directly by the importer from the supplier or along with the consignment and original documents received by the bank.
Availization of Collection Bills
Irrevocable unconditional undertaking for payment by the bank on behalf of the buyer (for the goods purchased/service provided) to the seller at specific maturity date. This has cost benefits when compared to a Letter of Credit.
Handling of Imports Financing
Fulfil short term financial requirements of importers to settle import related payments. Advances will be released in the form of Import Loans, Custom Duty Loans, Advance Payment Loans and Local Purchase Loans.
Advising of Letters of Credit
Facility of notifying that Letters of Credit have been received on behalf of exporters from issuing banks around the globe.
Handling Transferable Letters of Credit
Transfers of Letters of Credit received on behalf of exporters/sellers to second beneficiary(s) or suppliers on behalf of first beneficiary.
Confirmation of Letters of Credit
Adding our confirmation to Letters of Credit and undertaking to make payment against credit compliant documents.
Negotiation of Export documents under LC
Assist customers to prepare the documentation required under export Letters of Credit and scrutinize the export LC documents to avoid discrepancies and obtain payment for goods and services provided by the clients (exporters/suppliers).
Handling Export Bills on Collections
Processing of export bills on DP/DA terms, enabling exporters to receive proceeds for goods and services provided to their buyers.
Purchase / Discount of Export bills
Discounting usance bills under Import and Export Letters of Credit and Bills Avalized, improving cash flow.
Fulfil short term fund requirements of exporters to procure raw materials and carry out manufacturing processes.
- Advising and issuance of International Guarantees
- Status Report on Buyers and Sellers
Prasanna Premaratne – Vice President, Trade Services – +94 112371424
Udeshan De Silva – Senior Trade Services Manager – +94 112371463
Sajitha Jayakody – Manager, Trade Services – +94 112371462
Tikiri Thotamune – Relationship Manager – +94 112371543