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Saturday May 15th, 2021
Economy

Sri Lanka extends exchange controls till mid 2021

ECONOMYNEXT – Sri Lanka is extending an exchange control that barred companies and individuals from investing money for another six months from January 2020, the state information office said.

The cabinet of ministers had cleared a proposal from the Minister of Finance to extend the controls which are due to expire in January.

In 2020 Sri Lanka suspended a general permission under the country’s exchange control laws that allowed companies to invest in foreign stocks, securities or sovereign bonds as the rupee came under pressure due to money printing.

Private credit then weakened. But credit has started to pick up since then.

Under the earlier general permission resident listed companies were allowed to invest 2 million dollars a year, unlisted companies 500,000 dollars, a partnership 300,000 dollars or an individual 200,000 dollars.

A company or partnership was also allowed to invest up to 300,000 dollar a year without prior permission from the central bank.

Under the new controls, a company was limited to send up to 20,000 dollars for a branch office or liaison office.

Foreign currency account holders were barred from transferring above 20,000 dollars.

The controls were originally imposed in April as the rupee slid towards 200 to the US dollar.(Colombo/Dec01/2020)

Comments (2)

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  1. Don abeywickrama says:

    Yes this has been very much on USD control but euros become very high against Sri Lankan rupees its good for peoples who working in Europe to receive good money converter I am also pushing people to send money giving good rate to the euros to send money to Sri Lanka to help our economy I hope will have a good economy soon

  2. sacre blieu says:

    There are still underground foreign exchange racketeers operating and it could be as much as the official banking operations. The LTTE too, were operating such a illicit banking structure under the nose of the police and forces, at Mudalige Mawatha, Fort, and was common knowledge to many.

Comments

Comments (2)

Your email address will not be published. Required fields are marked *

Your email address will not be published. Required fields are marked *

  1. Don abeywickrama says:

    Yes this has been very much on USD control but euros become very high against Sri Lankan rupees its good for peoples who working in Europe to receive good money converter I am also pushing people to send money giving good rate to the euros to send money to Sri Lanka to help our economy I hope will have a good economy soon

  2. sacre blieu says:

    There are still underground foreign exchange racketeers operating and it could be as much as the official banking operations. The LTTE too, were operating such a illicit banking structure under the nose of the police and forces, at Mudalige Mawatha, Fort, and was common knowledge to many.