Central Bank to Relax Exchange Controls in Sri Lanka, Proposed Measures to Allow upto US$ 500,000 Out of the Country for Investment

05th November 2009, www.dailymirror.lk, By Deepal V. Perera

As Sri Lanka’s foreign exchange reserves are on the threshold of passing the US$5 billion mark, the Central Bank of Sri Lanka said last evening that it plans on relaxing current exchange control regulations in place thereby allowing Sri Lankan investors to invest upto US$500,000 abroad without Central Bank approval.

Accordingly Central Bank Governor Ajith N. Cabraal said that the Bank will be relaxing current exchange controls by the first of December this year, thereby allowing Sri Lankan investors take money out of the country without CBSL approval.

“The current exchange control measures in place require you to have the permission of the Bank while the proposed measures would enable people to take upto US500,000 out of the country for investment purpose without obtaining the approval of the Central Bank. It is only if you are intending to take money beyond this amount, that you would need to have approval from the bank,” the Central Bank Governor said. According to the Governor the current exchange control regulations in place do not allow anyone to take money out of Sri Lanka without prior approval from the Bank.