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Saturday, December 10, 2022

Cabraal clarifies position on remittances

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.

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