Sri Lanka Lenders to Give Part of Export Receipt to Central Bank

Sri Lanka’s commercial lenders have been asked to give to the central bank a chunk of foreign exchange earnings converted by exporters into domestic currency, Deputy Governor Dhammika Nanayakkara said Saturday.

On Feb. 18, the central bank issued a gazette notice requiring exporters to convert 25% of export proceeds to rupees and repatriate foreign earnings within 180 days of a shipment.

Operating instructions have been issued to lenders to surrender half of the 25% converted by exporters to the central bank, Nanayakkara said by phone.

The nation’s lenders have already been ordered to give 10% of remittance receipts to the central bank. In its 2021 budget, Sri Lanka had encouraged inward remittances by providing a 2-rupee per dollar incentive for all inward remittances.

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