Tuesday July 23, 2019

Sri Lanka tightens exchange controls, forcing exporters to repatriate forex

Apr 22, 2016 20:37 PM GMT+0530 | 1 Comment(s)

ECONOMYNEXT - Sri Lanka has slapped new controls on exporters forcing them to bring back any proceeds of goods exported till April 01, before the end of this month, reviving controls not seen in the country for over two decades.

Proceeds of exports after April 01 has to be brought back within three months.

Sri Lanka had required exporters to bring back dollars within four months up to 1993 but the controls were relaxed.

The central bank however said the money could be kept in a dollar account of an exporter in a domestic bank.

Sri Lanka enacted draconian exchange controls from 1952 onwards after a money printing central bank started to de-stabilize the currency. There have been calls for the central bank to be abolished and a currency board re-established to prevent the rupee from falling and impovering the population.