Forex management

Now Sri Lanka is facing a huge foreign exchange crisis and it will be further extended in future, if the Government and Central Bank of Sri Lanka do not take appropriate actions.

It is proposed to implement the following to mitigate the situation without harmful damage to the treasury.

• To pay Rs. 250 a US $ for all export remittances and Rs. 260 for foreign employment remittances
• List all imports according to the priority [essential to non-essential]
• Release forex on lower rate (i.e. Rs. 220 for high essential imports and gradually incremental premium rate [i.e. Rs. 290 for non-essential imports

The Central Bank of Sri Lanka can administrate the forex rate to neutralise the impact.

N. Nimal