ECONOMYNEXT – Sri Lanka has cut a requirement to covert export proceeds into rupees to 10 percent from an earlier 25 percent in new rules issued in April.
On February 18, 2021, the central bank ordered exporters to repatriate proceeds within 180 days and convert 25 percent into rupees.
The 180 repatriation requirement remains. Exporters who bring in proceeds before 180 days can also watch for a favourable exchange rate before converting.
Many exporters give credit to buyers and also keep dollars to import raw materials. Some exporters had expressed concern at the 25 percent requirement.
Sri Lanka’s rupee had fallen to around 202 to the US dollar by April 2021 from around 190 at the end of 2020 amid unprecedented money printing and the country is also mired in import controls.