Courtesy Adaderana

The Cabinet of Ministers approved the further extension of orders issued under the Foreign Exchange Act to control foreign exchange remittances outside the country.

Previously, orders were issued under Section 22 of the Foreign Exchange Act No. 12 of 2017 to suspend external remittances related to certain transactions, taking into account the possible negative impact on the country’s foreign reserves and foreign exchange market due to the Covid 19 epidemic. 

The orders expire on July 1, 2021, and the Central Bank of Sri Lanka said the order should be further implemented to minimize potential risk in the foreign exchange market and maintain the stability of the financial system. 

Accordingly, the Cabinet approved the proposal presented by Prime Minister in his capacity as the Minister of Finance to extend the orders issued under Section 22 of the Foreign Exchange Act No. 12 of 2017 imposing certain restrictions/prohibitions on foreign exchange remittances, for a period of further 06 months from 2nd July 2021.