Sri Lanka relaxes dollar conversion requirement for service exporters

ECONOMYNEXT – Sri Lanka has relaxed the mandatory dollar conversion requirements for service exporters to encourage them to bring dollars into the country as the sector has only converted about 20 percent of the dollars it has earned in the first six months .

The proceeds received on or after August 12 will not be required to be converted immediately, a Central Bank said on Tuesday August 16.

“With the view of encouraging service exporters to repatriate their export proceeds into the country, the Central Bank of Sri Lanka (CBSL) has withdrawn the mandatory requirement to convert service export receipts/proceeds,” the bank said.

However, exporters must receive the proceeds to the country within 180 days from the day the services were provided.

“All exporters are encouraged to bring in all export proceeds to the country at this time of need, while taking note of the mandatory requirement to receive such proceeds within 180 days,” the bank said.

According to CBSL, Sri Lanka’s service exporters have earned 1.533 billion dollars in the first six months. But only 406 million dollars have been converted to Sri Lankan rupees.

Meanwhile, the industry has earned the highest monthly proceeds of 324 million dollars in March 2022.

CBSL noted that it has intensified monitoring exporters and authorised dealers to make sure they are complying with the conversion requirement.

More details can be obtained at  www.dfe.lk.

(Colombo/Aug17/2022)