Sri Lanka’s Central Bank (CBSL) has announced a partial easing of foreign exchange controls, effective June 20th, 2024. This new regulation follows a proposal approved by the Cabinet of Ministers to amend the existing rule established under the Foreign Exchange Act No. 12 of 2017.
The previous rule, initially implemented in April 2020 to address declining foreign exchange reserves, restricted certain capital transaction remittances by Sri Lankan residents. Renewed every six months since its inception, the current iteration was due to expire on June 19th.
While details remain scarce, Cabinet Co-Spokesman and Minister Bandula Gunawardena indicated that the new regulation will “ease some of the previous suspensions and restrictions.” This move is intended to facilitate the expansion of business activities conducted by Sri Lankan companies in overseas territories.
The extent of the relaxation and the specific restrictions lifted are yet to be officially communicated by the CBSL. Businesses and individuals are advised to stay tuned for further announcements or clarifications from the Central Bank.