New regulations tighten monitoring of import payments as the Sri Lankan government introduces a tougher regulatory framework designed to strengthen oversight of outward remittances and prevent the misuse of import transactions to illegally transfer foreign exchange overseas.
New regulations tighten monitoring of import payments to curb foreign exchange leakages
The new measures follow recent disclosures of an alleged US$85 million bogus import payment fraud, prompting authorities to introduce stricter monitoring mechanisms involving commercial banks and Sri Lanka Customs. The regulations are intended to improve transparency in import-related foreign currency transactions while protecting the country’s foreign exchange reserves.
The framework has been introduced through the Imports and Exports (Control) Regulations No. 06 of 2026, published in Gazette Extraordinary No. 2493/39 on June 18 under the Imports and Exports (Control) Act No. 1 of 1969. The regulations were signed by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development and came into effect on June 19.
The latest amendments revise the Special Import License and Payment Regulations No. 1 of 2011 by introducing enhanced reporting obligations for commercial banks and stricter verification procedures for import-related payments.
Under the amended Regulation No. 4, every commercial bank is now required to assign a unique transaction number to each outward remittance made for import purposes. Banks must also transmit transaction details electronically and in real time to Sri Lanka Customs, enabling authorities to verify whether payments correspond to genuine import activities.
The information shared with Customs must include the importer’s Taxpayer Identification Number (TIN), the addresses of both the remitter and the overseas beneficiary, relevant banking identification codes and the corresponding proforma invoice numbers. The enhanced reporting system is expected to provide regulators with a comprehensive audit trail for every import-related foreign exchange transaction.
A key feature of the reforms is the introduction of mandatory importer registration through the newly inserted Regulation No. 8(4). Under the revised rules, businesses seeking to make advance payments for imported goods must first register as eligible importers with Sri Lanka Customs.
Commercial banks will no longer be permitted to process advance foreign currency payments unless the importer has completed the required Customs registration. Authorities believe this requirement will significantly reduce opportunities for fraudulent transactions by ensuring that outward remittances are linked to legitimate commercial entities and genuine import activities.
The government says the tighter framework is specifically designed to close loopholes that have previously enabled the misuse of import documentation to transfer funds abroad without corresponding imports.
Deputy Finance and Planning Minister Dr. Anil Jayantha Fernando sought to reassure the business community that the regulations are not intended to create additional obstacles for genuine importers. Instead, he said the objective is to strengthen oversight of foreign exchange outflows while protecting Sri Lanka’s external reserves from abuse.
According to the Deputy Minister, the new system targets unscrupulous operators who exploit import-export transactions as a vehicle for illegal capital flight. Legitimate businesses complying with existing trade procedures should not experience unnecessary delays or additional administrative burdens under the revised framework.
The introduction of real-time information sharing between commercial banks and Customs also reflects the government’s broader effort to strengthen regulatory coordination across state institutions. Officials expect the enhanced monitoring process to improve compliance, facilitate faster verification of transactions and increase accountability throughout the import payment system.
The regulations come as Sri Lanka continues efforts to reinforce financial governance and safeguard its external sector following recent economic reforms. By tightening supervision of import-related remittances and strengthening cooperation between financial institutions and customs authorities, policymakers aim to reduce foreign exchange leakages while maintaining the smooth flow of legitimate international trade.
The latest reforms are expected to play a significant role in improving transparency across the country’s import financing framework, while reinforcing confidence in Sri Lanka’s financial regulatory system and supporting the long-term stability of the nation’s foreign exchange management.