Due to the foreign exchange crisis facing Sri Lanka, one of Sri Lanka’s leading cable companies has informed its customers that it has decided to sell its products on cash basis only.
ACL Cables points out that restrictions imposed by local banks have made it difficult for them to obtain sufficient raw materials from foreign suppliers, and that the company will soon face a shortage of raw materials.
ACL Cable has informed its customers that the raw material it currently holds will not be sufficient to meet the demand for the next two months.
The letter dated September 16, 2021, signed by Executive Director Daya Wahalathanthiri states, “This letter is written to make our customers aware that the current dollar crisis, the sharp rise in market raw materials, the depreciation of the rupee, the abnormal rise in shipping and delays are creating a very unfavorable environment for manufacturing industries like ours.”
In this situation, ACL Cable has decided to sell the limited stock of the company’s only for cash as they have to have cash to get more of the available raw materials and settle monthly payments such as employee salaries and payments to banks and income tax.
It further states that customers who are unable to disburse cash on hand can be offered a bank guarantee in lieu of cash.
ACL Cable has emphasized that the move is necessary to cope with this difficult period, although it may cause inconvenience to customers due to its tough cash management decision.