Foreign Currency

Sri Lanka to lift some limits on outward remittances as reserves improve


Sri Lanka to lift some limits on outward remittances as reserves improve

The central bank reports that at the end of 2023, Sri Lanka’s official reserves were $4.4 billion, a 22% rise. The swap value of the reserves is in Chinese yuan and is around $1.5 billion Image Courtesy Reuters

Cabinet spokeswoman Bandula Gunawardane said on Tuesday that Sri Lanka has decided to gradually relax some restrictions on changing rupees to foreign currencies for overseas remittances. The revised guidelines will be submitted to parliament for approval.

The central bank of the island nation had, as of mid-2020, removed the ability for Sri Lankan citizens to remit money for investments abroad, unless certain requirements were met.

According to government spokesperson Bandula Gunawardane, Sri Lanka has decided to gradually relax some restrictions on changing rupees to foreign currency for outside remittances. The revised guidelines would be submitted to parliament for approval on Tuesday.

The central bank of the island nation has halted, with some exceptions, the ability of Sri Lankan citizens to send money for investments abroad starting in mid-2020.

“Sri Lanka’s reserves have gradually improved and limits will be increased under the guidance of the central bank,” Gunawardane told reporters during the weekly cabinet briefing.

With tremendous inflation, currency depreciation, and low foreign reserves, the nation of 22 million people had the greatest financial crisis in decades, which threw the economy into freefall. Gradually, the nation is beginning to recover.

The central bank reports that at the end of 2023, Sri Lanka’s official reserves were $4.4 billion, a 22% rise. The swap value of the reserves is in Chinese yuan and is around $1.5 billion.

(With agency inputs)

Published on: February 06, 2024 16:33:12 IST



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