Foreign banks are refusing to confirm letters of credit issued by Sri Lanka state banks, and oil suppliers are also rejecting them, Power and Energy Minister Kanchana Wijesekera said as the country reels from the worst currency crisis in the history of the central bank.
A supplier who was given an order for petrol had rejected a letter of credit issued by a state bank.
At first efforts were made with Bank of Ceylon to issue a Letter of Credit and later People’s Bank agreed to issue a letter of credit.
