Central Bank Governor Dr. Nandalal Weerasinghe said the country has now its own system of managing the situation with export proceeds, foreign remittance to import essential items such as gas, fuel and medicine.
The Central Bank introduced a slew of measures to encourage migrant workers to remit money via formal channels while cracking down on illegal transfers through Undiyal and Hawala. In addition, CBSL took measures to introduce rules in respect of repatriation and conversion of export proceeds to Sri Lankan Rupees.
“With these measures the situation has improved and without bridging financing, we have been able to manage the situation as of now.”
Governor Weerasinghe however said that Sri Lanka made a request from China to relax the usability of currency swap facility.
“Moreover we have asked the Central Bank of India to enhance the currency swap facility.”
Governor Weerasinghe also noted that the Central Bank of Sri Lanka has withdrawn the mandatory requirement to convert service export receipts, proceeds, that are received in Sri Lanka on or after August 12, 2022, to encourage service exporters to bring in all export proceeds to the country at this time of need.
Governor Weerasinghe expressed hope that with these measures, additional proceeds will come into the banking system to provide more for essential imports out of the export proceeds.
“However we will be monitoring the system. And we will bring back mandatory conversion if we do not see any improvement,” Governor Weerasinghe said.
