Sri Lanka licensed banks ordered to sell 25% of Forex transactions to Central Bank
Mon, Dec 27, 2021, 10:36 pm SL Time, ColomboPage News Desk, Sri Lanka.
Dec 27, Colombo: Sri Lanka’s Central bank (CBSL) today ordered all licensed banks to sell 25% of Forex transactions to the CBSL in a desperate measure to alleviate the forex shortage in the market and increase the foreign exchange.
Amending the Operating Instructions on extending the Incentive Scheme for inflows of workers’ remittances from Monday, the Governor of the Central Bank has informed the CEOs of all licensed banks (LBs) changes to mandatory foreign exchange sales to the CBSL and to incentives offered under the incentive schemes.
Accordingly, all LBs are hereby required to sell to the CBSL, on a weekly basis, in US dollars, twenty-five per centum (25%) of:
a) Inward workers’ remittances (received in various currencies) which are converted into Sri Lankan rupees (LKR), until further notice,
b) The residual of export proceeds which is mandatory to convert into LKR, until further notice, and
c) Foreign currency held in hand by the general public which are converted into LKR, until 31.01.2022.