Speculation of forcible conversion of remittances unfounded - CBSL | Page 3 | Sunday Observer

Speculation of forcible conversion of remittances unfounded - CBSL

21 November, 2021

Unfounded speculation is being spread by parties with vested interest that the recent request for proposals (RFP) in relation to the Securitised Financing Arrangement (SFA) is aimed at converting all worker remittances into Sri Lankan rupees upon receipt by licensed banks.

The Central Bank of Sri Lanka (CBSL) categorically states that there is no truth whatsoever in this allegation. Since May 28, 2021, licensed banks are expected to sell to the CBSL 10 percent of voluntary conversions of worker remittances into Sri Lankan rupees on the strength of the additional Rs. 2 incentive provided by the Government on such conversions.

While a RFP has now been launched to explore the possibility of securitising this already existing flow to the Central Bank, the SFA will have no impact on any worker remittance, which can continue to be freely retained in foreign currency accounts in Sri Lanka or converted into Sri Lankan rupees as done in the past. The public is requested to remain vigilant and not to be misled by such false information.

In the meantime, in collaboration with the Government, the CBSL will continue to facilitate the enhancement of worker remittances by incentivising funds remitted through formal channels, as previously announced.

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