Jan 03, 2017

Sri Lanka to liberalize the foreign exchange market soon

Exchange Management draft bill is to be presented in parliament soon to liberalize the foreign exchange market, Central Bank Governor, Dr.Indrajit Coomaraswamy told a media conference on Tuesday following his presentation of Road Map: Monetary and Financial Sector Policies for 2017 and beyond’. Action will be taken to repeal the draconian Exchange Control Act

The Road Map outlines the policies and strategies to be followed this year by the banking regulator.

Foreign investors will be allowed to bring in funds to any bank and there would be no necessity to bring them in through special investment accounts under the provisions of the act after its enactment in parliament, he said.

Dr. Coomaraswamy emphasized the need of ensuring the macroeconomic stability and very close monitoring of banks and the necessary regulations must be in place.

The concept of exchange control is outdated but it is also essential to tackle the issues of cash outflow. Relevant provisions of Foreign Exchange Management Act of 2003 are to be included in the new draft bill as well.