Govt extends forex controls | Daily News


 

Govt extends forex controls

In a bid to increase the foreign exchange flows into the country while controlling the flow of foreign exchange to other countries, the Government has decided to extend the validity period of the Gazette Notification relating to controlling foreign exchange outflows issued on April 2, 2020 for a further six months with effect from July 2, 2020.

According to Cabinet Spokesman and the Minister of Higher Education, Technology, Innovation and Information & Mass Media Dr Bandula Gunawardene, this measure will further restrict non-essential imports, even though there is no restriction on importing essential goods.

The Minister pointed out that these economic management measures are essential in the current situation, to curtail the outflow of foreign exchange to the extent possible.

Cabinet Spokesman and the Minister of Higher Education, Technology, Innovation and Information & Mass Media Dr. Bandula Gunawardena stated that the Government prudently manages the country’s economy in the economic crisis caused by the Covid-19 outbreak. The Government intends to accomplish this task by increasing foreign exchange flows into the country while controlling the flow of foreign exchange to other countries, the minister added.

For this purpose, the proposal made by the Prime Minister, as the Minister of Finance, to minimize foreign exchange remittances outside the country and to minimize the barriers in remitting foreign exchange into the country, was approved by the Cabinet of Ministers.

Steps are also being taken for positive measures that are essential to strengthen foreign exchange reserves in the country. The provisions of some of the existing laws raise certain limitations and constraints on the implementation of the previously introduced procedures for remitting foreign exchange in the country through special deposit accounts. In order to minimize these issues, the Cabinet of Ministers has decided to revise the Gazette Notification issued on April 8, 2020, incorporating Regulations under Section 29 of the Foreign Exchange Act No. 12 of 2017.

This will reduce the barriers to foreign exchange deposits in these special deposit accounts for expatriate Sri Lankans as well as foreign investors who wish to invest in the country.

The Minister added that the government goal is to do its best to meet the current global economic crisis, through expanding the scope of foreign exchange remittances into the country while controlling the opportunities of foreign exchange outflow to the government.

 


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