Government decides to further ease capital controls

The government has decided to further ease certain restrictions imposed on outward remittances for a six month-period until June next year based on recommendation of the Central Bank (CB).

“ The Central Bank of Sri Lanka has proposed that it is suitable to issue new directives that will be effective until June 2025 by further amending certain suspensions/restrictions imposed under the presently implemented directives,” the Government Information Department noted.

Accordingly, the President Anura Kumara Dissanayake  in his capacity as the Minister of Finance, Planning, and Economic Development sought the approval of the Cabinet of Ministers  to issue the directives for a six (6) month period with effect from 20-12-2024 under section 22 of the Foreign Exchange Act No. 12 of 2017.

However, the Government Information Department did not specify the details of these amendments. The validity period of the present directive in effect was set to expire yesterday. 

The CB has issued 10 directives since July 2023 with the objective of gradually

removing/relaxing certain suspensions/restrictions, taking into consideration the advancements and future prospects of the foreign exchange market in the country, Sri Lanka’s foreign exchange reserves stood at US$ 6.4 billion in November this year. (NF)