The Central Bank has issued a new Gazette requiring exporters to convert repatriated forex earnings within three months of the date of shipment. The new Gazette issued on Tuesday is a follow-up to the Gazette issued in February where exporters were mandated to convert 25% of their repatriated foreign exchange earnings through licenced commercial banks into rupees within two weeks.
Half of that forex or 12.5% were taken by the Central Bank to bolster reserves.
Under the new Gazette, exporters will have to ensure that their forex earnings are returned to the country and converted within 180 days from the date of shipment.
Full details of the Gazette are given below.
Repatriation of Export Proceeds into Sri Lanka Rules No. 1 of 2021 issued by the Monetary Board of the Central Bank of Sri Lanka and published in the Gazette (Extraordinary) Notification No. 2215/39 dated 18 February 2021, are hereby amended by the repeal of Rule 4 thereof and the substitution therefor, of the following new Rule.
“4 Every exporter of goods shall, within fourteen (14) days upon the receipt of such export proceeds into Sri Lanka as required under Rule 3 above, convert twenty-five per centum (25%) from and out of the total of the said exports proceeds received in Sri Lanka into Sri Lanka Rupees, through a licensed bank.
“Provided, however, that such date of conversion, shall not be a date later than the date before which the export proceeds shall be received in Sri Lanka as required by Rule 3 (i) above (i. e., not later than One Hundred and Eighty (180) days from the date of shipment.).”