LNP – CBSL increases mandatory foreign exchange sales to 25%

The Central Bank Governor has ordered all licensed banks in the country to sell 25% of converted US dollars to the CBSL on a weekly basis.

It came as an amendment to the Operating Instructions on “Incentive Scheme on Inward Worker Remittances”, “Repatriation of Export Proceeds into Sri Lanka”, “Additional Incentive Scheme on Inward Workers’ Remittances” and “Incentives for General Public for Depositing, Converting and Investing of Foreign Currency held in Hand.”

The new rule is effective from Monday (December 27).

Accordingly, all licensed banks are now required to sell to the CBSL, on a weekly basis, in US dollars, twenty-five per centum (25%) of:

a) Inward workers’ remittances (received in various currencies) which are converted into Sri Lankan rupees (LKR), until further notice,

b) The residual of export proceeds which is mandatory to convert into LKR, until further notice, and

c) Foreign currency held in hand by the general public which are converted into LKR, until 31.01.2022.

Further information in this regard can be obtained from the International Operations Department of the CBS