Prime Minister and Finance Minister Ranil Wickremesinghe has initiated measures to reduce the amount of foreign currency held by persons to boost the forex quantum in the country.
The move is also aimed at attracting foreign currency in the hands of the public into the formal banking system.
The Minister of Finance has issued an Order under Section 8 of the Foreign Exchange Act No. 12 of 2017 to slash the amount of foreign currency retained in possession by a person in, or resident in, Sri Lanka from USD 15,000 to USD 10,000 or its equivalent in other foreign currencies, granting an amnesty period of 14 working days effective from the date of the Order (June 16, 2022) for persons in, or resident in, Sri Lanka who hold foreign currency notes in possession for the following:
To deposit into a Personal Foreign Currency Account or into a Business Foreign Currency Account as specified in the Order. To sell to an Authorised Dealer (A Licensed Commercial Bank or National Savings Bank) at the end of the said amnesty period. The Central Bank has the right to initiate actions against persons who hold foreign currency in possession by violating the Order, in terms of the provisions of the Foreign Exchange Act.
For further information the Central Bank requests people to contact any Licensed Commercial Bank or National Savings Bank, refer the Order under Section 8 of the Foreign Exchange Act published in the Gazette (Extraordinary) Notification No. 2284/34 dated June 16, 2022 via the official website of the Department of Foreign Exchange, www.dfe.lk. Or contact the Department of Foreign Exchange through 011-2477255, 011-2398511 and [email protected].
Foreign reserves were an estimated around $2.31 billion in February and by March it had dropped to $1.93 billion this year. Overall reserves have crashed by about 70 percent in two years according to estimates.
The IMF delegation is in the country to shore up the country’s forex level to revive trade and kick start the economy which is currently facing the worst crisis since independence.