The Sri Lankan government has decided to further relax certain restrictions on outward remittances for a six-month period, effective until June 2025. This decision follows recommendations by the Central Bank of Sri Lanka (CB) to amend existing directives under the Foreign Exchange Act.
The President, Anura Kumara Dissanayake, acting in his capacity as the Minister of Finance, Planning, and Economic Development, secured Cabinet approval to implement the updated directives beginning December 20, 2024. The previous directive, which had been in place since July 2023, expired on December 19, 2024.
According to the Government Information Department:
“The Central Bank of Sri Lanka has proposed that it is suitable to issue new directives that will be effective until June 2025 by further amending certain suspensions/restrictions imposed under the presently implemented directives.”
Details of Amendments Awaited
While the exact details of the new amendments were not disclosed, the Central Bank has issued 10 directives since mid-2023 aimed at gradually relaxing restrictions, in line with improvements in Sri Lanka’s foreign exchange market and reserve levels.
Foreign Exchange Reserves Strengthen
Sri Lanka’s foreign exchange reserves reached $6.4 billion in November 2024, reflecting a recovery trend that has allowed for a more flexible approach to outward remittances. The new measures are expected to provide greater flexibility for individuals and businesses engaging in cross-border financial transactions.
This development signals continued confidence in the country’s foreign exchange stability and ongoing efforts to restore economic normalcy.
