Sri Lanka parliament to pass new foreign exchange law this week
ECONOMYNEXT – Sri Lanka’s parliament will pass the new foreign exchange law this week, part of the government’s efforts to transform the economy and reduce controls, State Minister of Finance Eran Wickramaratne said.
“We are doing away with the exchange control act,,” he told the economic summit held by the Ceylon Chamber of Commerce.
“It is a conceptual move away from controlled exchange management, from the government thinking it is the owner of hard-earned foreign exchange of expoters to exporters being the owner.”
The new law has removed criminalisation of violations of the exchange control act and associated prison sentences, Wickramaratne said.
“Those with pending cases and violations can regularize them by remitting and paying a penalty.”
Even that penalty is not applicable if remittances are to government securities.
“We’re moving to more of a rule-based regulatory system. The new act will be passed in parliament this week.”
The island’s gross official foreign exchange resrves had grown to US$& billion today from $5 billion in April with the proceeds of the sovereign bond and syndicated loans.
The deal to lease the Hambantota port to China’s CMPorts is almost through with about $400 million of te proceeds expected this year, Wickramaratne said.
COLOMBO, July 25, 2017)