CBSL withdraws mandatory conversion requirement of export proceeds

COLOMBO (News 1st); The Central Bank of Sri Lanka (CBSL) has withdrawn the mandatory requirement to convert service export receipts and proceeds by 12th August 2022.

Issuing a release, the CBSL stated that the decision, which was previously taken with the view of encouraging service exporters to repatriate their export proceeds into the country, can now be used by service exporters for the permitted purposes. 

However, the mandatory requirement to receive proceeds of service exports to the country within 180 days from the date of provision of services remains unchanged.  

According to the information reported by banks, during the first six months of year 2022, a total of USD 1,533 million has been received as service exports receipts, of which USD 406 mn has been converted to Sri Lankan Rupees. 

The highest monthly service export proceeds of USD 324 mn were received in March 2022. During discussions with representatives of service exporters, they have highlighted the potential to further enhance export receipts, the CBSL stated. 

All exporters have been encouraged to bring in all export proceeds to the country at this time of need, while taking note of the mandatory requirement to receive such proceeds within 180 days. 

The Central Bank has intensified its monitoring on compliance with the relevant requirements with respect to exporters and Authorised Dealers.