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 a cash only basis.
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 as a result.
The company has informed its customers that the raw material it currently has in stock will not be sufficient to meet the demand for the next two months.
"This letter is 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 other delays are creating a very unfavorable environment for manufacturing industries like ours," ACL said in a letter to its customers.
In the letter dated September 16, 2021, signed by Executive Director Daya Wahalathanthiri stated that in this situation, ACL Cables has decided to sell the limited stock available on a cash only basis as the company has to secure funds to get more raw materials, monthly payments such as employee salaries and payments to banks and income tax.
It further said that customers who are unable to disburse cash on hand can provide a bank guarantee in lieu of cash.
ACL Cables has emphasized that the move is necessary to cope with this difficult period, although it may cause inconvenience to customers.