Foreign exchange controls to be lifted gradually

The Cabinet greenlighted the proposal to gradually lift some restrictions imposed on rupee conversions for outward remittances based on Central Bank’s (CB) recommendations.  
The Government Information Department announced that Sri Lanka is bound to lift the foreign exchange controls as the country’s balance of payments is 
reaching a steady stance which has been acknowledged by the International Monetary Fund.

Last year, Sri Lanka reported its first balance of payment (BOP) surplus in four years and the highest since 2017, as the country recorded a positive balance in the external account of US$ 2,826 million.
“Adhering to that, recommendation of the Governing Board of Central Bank (CB) to implement the steps under the phase-wise plan of releasing foreign exchange limitations applicable to banning the conversion of Sri Lankan Rupees to foreign exchange for certain mobile foreign exchange transactions,” the Government Information Department said.

Accordingly, President Ranil Wickremesinghe in his capacity as the Minister of Finance, Economic Stabilisation and National Policies sought the approval of the Cabinet of Ministers this week to publish the orders formulated as per the foreign exchange limitation provisions of section 7 (1) of the Foreign Exchange Act No. 12 of 2017 and to present it to parliament for approval.
However, Cabinet Spokesman Minister Bandula Gunawardena addressing the weekly post Cabinet press briefing yesterday ruled out a ‘complete relaxation’ of import control restrictions currently in place.