Central Bank clarifies stance on remitting funds to Lankans abroad

• Says no hindrance to provide any additional financial assistance to Lankans abroad
• Stresses transfers must be done through authorised dealers
• Urges citizens to use opportunity in a responsible manner

The Central Bank of Sri Lanka (CBSL) yesterday clarified its position on the remittance of funds to Sri Lankans living abroad during the ongoing global crisis and stressed the locals would be able to do so within the set regulatory framework.

The CBSL said it would pave the way for the transfer of funds overseas so that the citizens, who remain abroad and were unable to return to the country due to the coronavirus pandemic, are able to meet their living expenses.
Acknowledging that the CBSL is aware that some Sri Lankans, who have gone abroad for short visits for leisure and holidays, meet relatives and friends, pilgrimage, business purposes, training, seminars and conferences, medical treatments, sports, recreational and cultural activities, amongst others, on student or equivalent visas, are stranded abroad amidst the prevailing global pandemic. The regulator affirmed it would allow the families of those citizens to transfer the necessary funds.

“The CBSL wishes to reiterate that there is no hindrance to provide any additional financial assistance to the above-mentioned categories of Sri Lankans currently abroad, to meet their basic needs at this time of difficulty,” a CBSL statement said while stressing the need to make use of the opportunity in a 
responsible manner.

Spelling out the terms in which the transfers can be done, the CBSL said that the family members residing in Sri Lanka are permitted to send money from Sri Lanka to the persons who have gone abroad for studies or for medical purposes, being university, tuition, training, course fees, living expenses, medical charges or as any related fees. 
The transfer must be carried out through an authorised dealer (AD) in foreign exchange (any licensed commercial bank or a permitted licensed specialised bank) upon submitting the relevant documentary evidence as usually required by ADs.

The CBSL added that such persons can also use their credit, debit (ATM) and foreign travel cards issued to them by Ads, for payments or cash withdrawals/obtain cash advances in foreign currency during their stay abroad, in respect of transactions of personal nature. 

The monetary watchdog asserted that the recent measures introduced to ease the pressure on the exchange rate, do not impose any restrictions on remittances/payments for current transactions, including overseas educational, medical and family living expenses.  

In a bid to ease the pressure on the exchange rate, the CBSL recently reduced the maximum limit of foreign currency notes issued for travel purpose and imposed restrictions on outward remittances on capital transactions.