ECONOMYNEXT – Sri Lanka’s cabinet of ministers has approved submitting to parliament new rules aimed at allowing exporters to invest in domestic dollar-denominated bonds, minister Nalinda Jayatissa said.
The move is intended to increase demand, broaden the government’s foreign currency funding base and improve competitive pricing, he told reporters.
The decision follows a previous initiative approved on October 13, 2025, which saw the government issue domestic debt instruments denominated in foreign currency targeting local commercial banks.
While the first issuance under that framework was completed on December 10, 2025, participation was restricted to
incorporated commercial banks due to existing regulatory constraints.
Specifically, rules and instructions issued by the Foreign Exchange Department of the Central Bank of Sri Lanka limited the scope of the initial offering.
To address these limitations and drive higher demand, the cabinet approved a proposal, to amend the repatriation of export proceeds framework, Jayatissa said.
The new Repatriation of Export Proceeds into Sri Lanka Rules No. 01 of 2026′ were published via Extraordinary Gazette No. 2473/30 on January 30, 2026.
These rules, issued under the Central Bank of Sri Lanka Act No. 16 of 2023, modify the 2024 regulations to allow exporters to use their earnings for investment in domestic dollar bonds.
The new regulations will now be placed before parliament for formal approval. (Colombo/February 25/2026)