RIFKA ZIYARD
COLOMBO: The Central Bank of Sri Lanka (CBSL) has once again revised its decision made on 9th April 2021 on rules pertaining to repatriation of export proceeds into Sri Lanka. The latest gazette notification date 28th May 2021 (No. 2229/9) states that 25 percent of the export proceeds from export of goods would be required to be converted to Sri Lankan Rupees (SLR) within 30 days of receipt. Previous requirement to convert was 10%.
The new rules are cited ‘Repatriation of Export Proceeds into Sri Lanka Rules No 4 of 2021’. This is the fourth set of rules introduced in the last three months. These restrictions were initially introduced on 18th February 2021 which were subsequently amended time to time.
Further the new rules state that Monetary Board may determine a percentage less than 25% for certain export sectors or industries , if the Monetary Board is satisfied, that the export goods and processes of such export sector, industry or exporter, utilize a very high percentage of imported goods that cannot be sourced domestically. However, the determined percentage by the Monetary Board would not be less than 10% and received not later than One Hundred and Eighty (180) days from the date of shipment)”.
The rules also state that the Monetary Board may in general, having regard to the liquidity situation in the foreign exchange market and the Gross Official Reserve levels in Sri Lanka, may determine other percentages of the export proceeds received in Sri Lanka, that should be converted into Sri Lanka Rupees from time to time as deem fit and appropriate in the prevailing circumstances.
