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Sri Lanka parliament to pass new foreign exchange law this week

Jul 25, 2017 12:02 PM GMT+0530 | 1 Comment(s)

ECONOMYNEXT – Sri Lanka’s parliament will pass the new foreign exchange law this week, part of the government’s efforts to transform the economy and reduce controls, State Minister of Finance Eran Wickramaratne said.

“We are doing away with the exchange control act,,” he told the economic summit held by the Ceylon Chamber of Commerce.

“It is a conceptual move away from controlled exchange management, from the government thinking it is the owner of hard-earned foreign exchange of expoters to exporters being the owner.”

The new law has removed criminalisation of violations of the exchange control act and associated prison sentences, Wickramaratne said.

“Those with pending cases and violations can regularize them by remitting and paying a penalty.”

Even that penalty is not applicable if remittances are to government securities.

“We’re moving to more of a rule-based regulatory system. The new act will be passed in parliament this week.”

The island’s gross official foreign exchange resrves had grown to US$& billion today from $5 billion in April with the proceeds of the sovereign bond and syndicated loans.

The deal to lease the Hambantota port to China’s CMPorts is almost through with about $400 million of te proceeds expected this year, Wickramaratne said.
COLOMBO, July 25, 2017)
 


 

1 Comments

  1. RMB Senanayake September 15, 04:26 AM

    Fine but such freedom can only be maintained with prudent fiscal policy which means that budget deficits in current account are out and deficits on the capital account are funded from free foreign capital inflows. Otherwise this good news will last only a short time if our foreign assets fall and are not suffcient to sustain the net outflows controls will have o be brough back.
    Everything depends on the government eliminating its current account deficit in the budget and bringing balance to external payments account by balancing the government budget and doing away with money printing by borrowing from the Central Bank under the pretext of permissible short term borrowings which are rolled over

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