ECONOMYNEXT – Sri Lanka will gradually loosen measures taken to prevent outflow of foreign exchange implemented during the currency crisis in 2022, cabinet spokesman minister Bandula Gunawardena said.
Based on the recommendation of the governing board of the Central Bank of Sri Lanka, the government will “implement steps under a phased plan of releasing foreign exchange limitations applicable to banning the conversion of Sri Lankan rupees to foreign exchange for certain mobile foreign exchange transactions,” Gunawardena said.
Gunawardena did not specify the exact measures, but said “It will be done methodically, responsibly and strategically.”
“There won’t be a complete relaxation of import control laws; personally I don’t believe we will be able to import motor vehicles en masse for some time yet.”
Further loosening will be done when “the country’s balance of payments reaches a steady stance as per the International Monetary Fund report on Sri Lanka,” he said at a press briefing to announce cabinet decisions on Tuesday.
The proposed amendments to lift the foreign exchange limitations step by step will be formulated as per the provisions of section 7 (1) of the Foreign Exchange Act No. 12 of 2017 and presented in Parliament for approval.
(Colombo/Feb6/2024)