Central Bank to make surrendering of export earnings mandatory

1 October 2021 09:34 am Views - 215

By Kelum Bandara        

                                                    
The Central Bank will announce fresh regulations in its road map to be unveiled today making it mandatory for exporters to surrender their foreign exchange proceeds to be converted into Sri Lankan rupees, Daily Mirror learns. The Central Bank, under the instructions of newly appointed Governor Ajith Nivard Cabraal, will take such steps among others to replenish dwindling foreign reserves of the country. 

The lack of sufficient US dollars had affected Sri Lanka’s external trading. The Central Bank believes such regulations for surrendering export revenue will enable it to secure US dollars sufficient to tide over current difficulties.  


The Central Bank, in February this year, released a Gazette notification calling for exporters to immediately convert   25 percent of foreign exchange proceeds.  However, new regulations will envisage varying percentages for different sectors of export earnings.


The road map will include a host of other measures related to the macroeconomic fundamentals of the country.