New rules governing repatriation of export proceeds into Sri Lanka

The Monetary Board of the Central Bank on FrIday issued new rules pertaining to export earnings of exporters stipulating that 25 per cent of these earnings in foreign currencies should be converted to Sri Lanka rupees within a specified period.

In a media release, the banking regulator said that the following rules have been imposed with effect from February 18 until further notice:

1. Every exporter of goods shall:

(i) receive the export proceeds in Sri Lanka in respect of all goods exported within 180 days from the date of shipment, and

(ii) forthwith submit all related documentary evidence on each and every receipt of export proceeds in respect of every export of goods made, to the respective Licensed Commercial Bank or the Licensed Specialized Bank (hereinafter referred to as “Licensed bank”) that receives such proceeds in Sri Lanka.

2. Every exporter of goods shall, immediately upon the receipt of such export proceeds into Sri Lanka as required under this Rule, convert 25% from and out of the total of the said exports proceeds received in Sri Lanka into Sri Lanka Rupees, through a licensed bank.

3. The requirement of converting the 25% from and out of the export proceeds received in Sri Lanka, shall continue, until any other percentage as may be determined by the Monetary Board, from time to time.

4. All licensed banks shall be required to mandatorily monitor, strictly, the receipts of exports proceeds in Sri Lanka within the period as stipulated and the conversion of such proceeds as required in this Rule, and shall maintain all documentary evidence relating or in connection thereto.

5. All licensed banks shall submit reports to the Director of the Foreign Exchange Department of the Central Bank of Sri Lanka as may be required from time to time and provide unencumbered access to the officers of the Central Bank as may be authorized by the Governor or the Deputy Governor, as the case may be, to inspect or examine the records maintained under the Rule, and to examine and review all actions taken by such licensed banks in securing full and strict compliance with these Rule.