Sri Lanka relaxes certain limitations on outward remittances

Sri Lankan Government has issued an order relaxing certain limitations on outward remittances for capital transactions and removing the restrictions on current transfers of emigrants.

With a view to assist and maintain the financial system stability by minimizing the pressure on the exchange rate and preserving the foreign currency reserve position of the country, the Minister of Finance had issued Orders under Section 22 of the Foreign Exchange Act, No. 12 of 2017 (FEA) since 02.04.2020, to temporarily suspend / limit certain outward remittances.

The Central Bank of Sri Lanka said that considering the current and expected developments in the domestic foreign exchange market and with a view to further facilitate international transactions, the Minister of Finance, with the recommendation of the Monetary Board of the Central Bank of Sri Lanka and the approval of the Cabinet of Ministers, has issued a new Order under Section 22 of the FEA.

“This order has relaxed certain limitations on outward remittances for capital transactions and removed the restrictions on current transfers of emigrants, while continuing the other suspensions / limitations which were imposed under the previous Order.”

The new order is effective for 06 months from June 28, 2023.