Sri Lanka to Ease Restrictions on Outward Remittances
Approval for Lifting Rupee Conversion Limits
Sri Lanka has given the green light to gradually relax restrictions on converting rupees to foreign exchange for outward remittances. Cabinet spokesperson Bandula Gunawardane mentioned that the new directives will be presented to parliament for approval. This move comes after the central bank had halted the permission to remit funds for overseas investments by Sri Lankan residents in mid-2020, except under specific conditions.
Improvement in Foreign Reserves
Growth in the nation’s official reserves, which stood at $4.4 billion at the end of 2023, has seen a 22% increase, according to the central bank. The country is slowly recovering from its worst financial crisis in decades, marked by soaring inflation, currency depreciation, and low foreign reserves. Additionally, the reserves include a Chinese yuan-denominated swap worth $1.5 billion.
Positive Outlook for the Economy
Sri Lanka’s economy, home to 22 million people, is showing signs of improvement as the country emerges from the financial crisis. This positive development has been attributed to the gradual improvement in foreign reserves and the government’s decision to ease restrictions on converting rupees to foreign exchange for outward remittances.
