CBSL ends incentive scheme for expatriate workers’ remittances

The Central Bank of Sri Lanka has announced that it is ending the proposed additional incentive scheme for expatriate workers’ remittances and exporters.

According to the Central Bank, as a result of the decision of the Central Bank of Sri Lanka to allow flexibility in the exchange rate, the exchange rate seems to have now reached a level surpassing the level of incentives that was intended to stimulate expatriate workers’ remittances and conversion of export earnings.

Therefore, the current exchange rate provides a higher return on the foreign exchange remittances of expatriate workers and a higher rupee value on the net earnings of exporters.

In view of these recent developments, the Central Bank said it has decided not to implement the proposed scheme for additional incentives for remittances and net earnings of exporters.

It also added, according to the latest official data, with the notable upward adjustment in the exchange rate, the conversion of foreign exchange earnings through formal channels by expatriates and exporters has already shown a marked increase in the month of March.