ECONOMYNEXT – Sri Lanka’s cabinet had given approval to extend exchange and import controls for another six months from June 02, to keep the exchange rate stable, Information Minister Bandula Gunewardene said.
The proposal was submitted by Mahinda Rajapaksa as Minister of Finance.
Rajapaksa had also proposed to issue regulations under section 29 of Sri Lanka’s Exchange Management Law to remove restriction to bringing in foreign exchange.
“While we are restricting outflows we are making it easier for foreign exchange to come in,” Gunewardene said.
The regulations extending controls, will be issued on the government gazette later, he said.
The state information office said some regulations will be revised to deal with concerns over money laundering.
Sri Lanka has seen a fall in inflows amid a Coronavirus epidemic but the exchange rate came under pressure in March and April in the wake of liquidity injections. Private credit however had slowed by April. (Colombo/June25/2020 – Corrected to say from July 02 not June 02)