Cabraal clarifies position on remittances

COLOMBO (News 1st); Sri Lanka's Central Bank Governor Ajith Nivard Cabraal on Friday (7) in a series of tweets has clarified the position on remittances.

He said that remittances by Sri Lankan expats are NOT subject to the rule on the conversion of export proceeds, as those are not considered "services exports".

Hence, those can't & won't be converted into Sri Lankan Rupees without the consent of the recipient, he said.

However, the Governor said that in the case of merchandise or services exports by resident Sri Lankans, residual earnings have to be converted into Sri Lankan Rupees after deducting the permitted payments, he added.

The deductions permitted are:

Outward remittances in respect of current transactions

Withdrawal in forex as permitted

Debt servicing expenses,

Purchases of goods and service

Investments in SLDBs.

#Remittances by Sri Lankan #expats are NOT subject to rule on conversion of #export proceeds, as those are not considered "services exports". Hence, those can't & won't be converted into LKR without the #consent of the recipient. @CBSL #SriLanka #facts

— Ajith Nivard Cabraal (@an_cabraal) January 7, 2022

In the case of #merchandise or #services exports by resident Sri Lankans, #residual earnings have to be converted into LKR after deducting the permitted payments. @CBSL #SriLanka #Facts

— Ajith Nivard Cabraal (@an_cabraal) January 7, 2022

The deductions permitted are: outward #remittances in respect of current transactions, withdrawal in #forex as permitted, #debt servicing expenses, purchases of goods and services, and #investments in #SLDBs. @CBSL #SriLanka #facts

— Ajith Nivard Cabraal (@an_cabraal) January 7, 2022