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New exchange control regulations on top of import controls

New exchange control regulations on top of import controls
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Suspensions and restrictions on outward remittances announced by CBSL

Suspensions and restrictions on outward remittances announced by CBSL
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Sri Lanka restricts outward remittances for 6 months to preserve foreign exchange position


With a view to assist and maintain the financial system stability by minimizing the pressure on the exchange rate and preserving the foreign currency reserve position of Sri Lanka, the Finance Minister with the recommendation of the Monetary Board of the Central Bank and the approval of the Cabinet has issued an Order under Section 22 of the Foreign Exchange Act.
Accordingly, the following suspensions/restrictions on outward remittances will be effective for six (06) months commencing from 2 July 2021.
i. Suspend the repatriation of funds under the migration allowance out of funds received as monetary gifts by an emigrant from an immediate family member (i.e. parents, grandparents, siblings and spouse of the Emigrant). ....

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