ECONOMYNEXT – Sri Lanka exporters who get advance payments should not have to convert foreign exchange before shipment, Central Bank Governor Nandalal Weerasinghe promising assistance to those in difficulties.
“The principle is that if they bring in export proceeds we have given them permission to keep whatever they need for current transactions and the balance converted,” Governor Weerasinghe said.
“If there is an issue we can discuss it, if it is raised.”
The central bank has issued direction asking exporters to bring back export proceeds within six months of shipment and convert the proceeds to rupees by the 7th of the following month.
However, export proceeds are converted on the 7th of the month, before the shipment is made leaving small exporters in particular in difficulties.
Governor Weerasinghe promised to look in to the problem if an exporter brings it up.
“That we can look at it, obviously the whole idea is to facilitate all the payments,” he explained
“We do not want to disturb the operation of the exporters. If we receive (a request) we can consider that.”
Sri Lanka exporters getting advance payments in fix over forced fx conversion
Most exporters cannot get advance payments and have to compete in the global market place by giving credit to win business. (Colombo/Jan26/2023)