CBSL partially lifts previous forex restrictions

Thursday, 13 June 2024 01:34 - - {{hitsCtrl.values.hits}}

The Cabinet of Ministers has approved a proposal to issue a new rule under clause 22(1) of the Foreign Exchange Act No. 12 of 2017.

This rule aims to implement recommendations for ensuring financial stability within Sri Lanka by temporarily suspending and limiting certain capital transaction remittances by residents.

In response to the declining foreign exchange reserves in the country, a rule under section 22 of the Foreign Exchange Act was first empowered on 2 April 2020. This rule has been renewed every six months since its inception. The current rule is valid till 19 June.

The Central Bank of Sri Lanka has now issued a new rule, effective from 20 June, for another six-month period.

“The new regulation will ease some of the previous suspensions and restrictions to facilitate the expansion of business activities of resident companies in overseas territories,” Cabinet Co-Spokesman and Minister Bandula Gunawardena said at the weekly post-Cabinet meeting media briefing yesterday.