Since 02.04.2020, the Minister of Finance has issued Orders under Section 22 of the Foreign Exchange Act, No. 12 of 2017 (FEA) to temporarily suspend/limit certain outward remittances in order to assist and maintain financial system stability by minimising pressure on the exchange rate and preserving the country’s foreign currency reserve position.
Given the current and expected developments in the domestic foreign exchange market, and in order to further facilitate international transactions, the Minister of Finance issued a new Order under Section 22 of the FEA, with the recommendation of the Monetary Board of the Central Bank of Sri Lanka and the approval of the Cabinet of Ministers.
This Order relaxed certain restrictions on outward remittances for capital transactions and removed restrictions on current emigrant transfers, while maintaining the other suspensions/limitations imposed by the previous Order. The new Order will be in effect for six (06) months beginning on June 28, 2023. The table below summarises the suspensions/limitations that have been relaxed.
