CB sets up new dept. to implement Foreign Exchange Act

With a view to further liberalising capital flows and simplifying the processes associated with current account transactions and various types of foreign currency or rupee accounts, the Government declared in its Budget Proposals for 2016 that a new foreign exchange law would be introduced.

In keeping with this announcement, a new legislative and policy framework for foreign exchange operations has been introduced by the Foreign Exchange Act, No. 12 of 2017 with effect from 20 November 2017, repealing the Exchange Control Act, No. 24 of 1953. 

The provisions of the new act are being implemented through the newly-established Department of Foreign Exchange at the Central Bank of Sri Lanka.

Relevant regulations and orders made under the new act by the Minister of National Policies and Economic Affairs, Prime Minister Ranil Wickremesinghe, have been published in the gazette notification No. 2045/56 dated 17 November 2017, while directions have been issued to authorised dealers (licensed commercial banks) by the Director of the Department of Foreign Exchange on 20 November 2017. 

For more information visit www.dfe.lk or contact the Department of Foreign Exchange through the following numbers: 011-2477433 – Additional Director, 011-2477207/248/375 – Deputy Directors, 011-2398641 – Policy and Research Division and 011-2477358/651 – Capital Transactions Division.