Central Bank restricts foreign currency holdings of the public

In a desperate move to prevent informal dollar transactions and retaining dollars, the Central Bank has restricted the holding of foreign currency by the public to US$10,000 from $15,000 with effect from August, Central Bank Governor Dr. Nandalal Weerasinghe divulged.         

Addressing a media conference convened to brief monetary policy decisions, he noted that the law enforcement authority has been directed take stern legal action against persons holding foreign currency for illicit transactions or keeping it in their possession for over three months.

Foreign currency holders are to be given a grace period and after the expiry of the due date they will be required to deposit the money in a public or private bank.

Measures will be taken to seize foreign currency notes in excess of the stipulated limit under Sri Lanka’s foreign exchange law, he said adding that two such seizures had been made on charges of illicit transactions. Many people were holding currency notes at home and also in bank vaults, he said. (Bandula)