Foreign earnings from all exported goods and services supplied overseas are mandatory to be remitted to Sri Lanka within 180 days after shipment or provisioning of services, a special gazette notification issued by the Central Bank of Sri Lanka (CBSL) Governor noted.
The communiqué, titled “Repatriation of Export Proceeds into Sri Lanka Rules No. 1 of 2022”, was published last Friday (11).
The CBSL’s Monetary Board issued new rules, acting in terms of the provisions of the Monetary Law Act No. 58 of 1949.
As per the gazette notification, every exporter should immediately, upon receiving export proceeds, forthwith submit all related documentary evidence on each and every receipt of export proceeds to the respective licensed commercial bank or a permitted licensed specialised bank.
The Director of the Department of Foreign Exchange of the CBSL is authorised to initiate action against any non-compliance with, or transgression of, the rules by any exporter, local supplier, or licensed bank.
When The Morning Business contacted Confederation of Micro, Small, and Medium Industries (COSMI) Founder President Nawaz Rajabdeen in November 2021, with regard to the conversion of export proceeds to Sri Lankan rupees (LKR) due to further dwindling foreign reserves by the CBSL, he responded, saying: “Six hundred or over 600 car importers are suffering since the last two years, which subsequently has created unemployment. We (COSMI) have suggested alternatives since we (Sri Lankans) do not have dollars. The Sri Lankans who live abroad over three years can send ‘gift cars’ which would revise the economy of the country and its people.” He added that such conversion would have drawbacks on the exporters.