Forex account regulations relaxed

Tuesday, 5 January 2016 00:05 - - {{hitsCtrl.values.hits}}

The Central Bank yesterday liberalised foreign exchange accounts to allow holders to carry out transactions without restrictions.

The new regulations are part of efforts to make Sri Lanka a financial hub, Central Bank Governor Arjuna Mahendran told reporters, adding that holders of Non-resident Foreign Currency and Resident Foreign Currency can remit money with no questions asked.

“We now encourage people to deposit foreign currency but ask many questions when customers try to get money,” he said.

The Central Bank is also setting in place measures to absorb inflows from foreign investors under an initiative by Finance Minister Ravi Karunanayake several months ago.

“With immediate effect from end of this week we will be posting a new circular to all commercial banks in Sri Lanka that they can allow those operations of NRFC and RFC accounts to be conducted without any restrictions,” Mahendran said.