With a view to assisting and maintaining the financial system stability by minimizing the pressure on the exchange rate and preserving the foreign currency reserve position of the country, the Finance Minister has issued Orders under Section 22 of the Foreign Exchange Act No. 12 of 2017 (FEA) since April 2, 2020, to temporarily suspend/limit certain outward remittances.
Considering the current and expected developments in the domestic foreign exchange market and with a view to further facilitating international transactions, the Finance Minister, with the recommendation of the Monetary Board of the Central Bank 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 six months from June 28, 2023. The summary of the suspensions/limitations so relaxed are indicated in Table below.