DHAKA, Oct 27, 2022 (BSS) - Bangladesh Bank BB) has asked banks not to do transactions with Sri Lanka through the Asian Clearing Union (ACU) mechanism.

"In response to the self-motivated decision by the Central Bank of Sri Lanka (CBSL) to remain temporarily suspended from ACU mechanism with effect from October 14, 2022; all Authorized Dealers (ADs) are advised not to do any trade and trade related transactions with Sri Lanka through ACU mechanism," as per a BB circular issued today.

The ACU is an arrangement through which participating countries settle import payments for intra-regional transactions.