Central Bank establishes department to implement new foreign exchange law

The Central Bank of Sri Lanka has established a new department to implement the new foreign exchange law.

Sri Lanka repealed its Exchange Control Act No.24 of 1953 and introduced new policy framework for foreign exchange operations through Foreign Exchange Act No.12 of 2017, which came into effect on November 20, 2017.

The new Act was introduced with a view to further liberalize the capital flows and simplify the processes associated with current account transactions and various types of foreign currency/rupee accounts. 

“Provisions of the new Act are being implemented through the newly established Department of Foreign Exchange in the Central Bank of Sri Lanka,” the Central Bank said in a brief statement. 

The monetary authority said relevant regulations and orders made under the new Act by the National Policies and Economic Affairs Minister have been published in the gazette notification No.2045/56 dated November 7, 2017.

Directions have also been issued to licensed commercial banks by the Director of Department of Foreign Exchange on November 20, 2017.