Sri Lanka to relax withdrawals from RFC, NRFC forex bank accounts

ECONOMYNEXT – Sri Lanka will relax controls on withdrawing money from foreign exchange accounts, Central Bank Governor Arjuna Mahendran said.

The current restrictions on withdrawing money from Non-Resident Foreign Currency Accounts, and Resident Foreign Currency Accounts will be relaxed as part of measures to make Sri Lanka a financial hub, he said.

"We now encourage people to deposit foreign currency but ask many questions when customers try to get money," he said.

Deputy Governor Nandalal Weerasinghe said domestic withdrawals still have to be made in rupees, but banks will not ask questions when remitting money out. 

Earlier banks had to ensure that transactions were only for current account purposes, but bank will now remit payments without questions being asked, he said.

The relaxing of forex regulations will appear in the government gazette notice for December 29, which has not yet been published. A circular will be issued to banks as soon the gazetter is published, which could be as early as this week, officials said.

 

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