CBSL issues new rules for conversion of export proceeds

COLOMBO (News 1st); The Monetary Board of the Central Bank of Sri Lanka (CBSL) has issued new rules in respect of repatriation of export proceeds into Sri Lanka and conversion of such export proceeds to Sri Lanka Rupees. In a press release, the CBSL has repealed the existing rules issued under the Monetary Law Act, No.58 of 1949 and had made the new rules applicable for both exporters of goods and services in Sri Lanka. Accordingly, the new rules require exporters to convert, the residual (remaining balance of such export proceeds received), into Sri Lanka Rupees, on or before the seventh (7th) day of the succeeding month, upon meeting following authorized payments.

1. 1. Outward remittances in respect of current transactions
   2. Withdrawal in foreign currency notes, as permitted
   3. Debt servicing expenses and repayment of foreign currency loans
   4. Purchases of goods and obtaining services including one-month commitments
   5. Payments in respect of making investments in Sri Lanka Development Bonds in foreign currency up to ten per-centum (10%) of the export proceeds, so received.

The CBSL adds that with the issuance of these Rules, exporters are able to meet all the expenditure relating to export of goods and services, out of their export proceeds.