Limited Mobility

Sri Lanka’s Central Bank has allowed indirect exporters to open a special account to use their foreign currency sales proceeds to pay for imported inputs, the bank said late Friday. Sri Lanka’s Central Bank has allowed indirect exporters to open a special account to use their foreign currency sales proceeds to pay for imported inputs, the bank said late Friday. The facility kicks in from April 15 and is designed as ‘an incentive to the export sector,’ the bank said.

An indirect exporter is defined as: “Any person or entity manufacturing, processing, sub-contracting or supplying any product in the final form directly to an exporter”.

“This is a facility that the indirect exporters have been asking for sometime so that they could use their sales proceeds received in foreign currency to make payments for imported inputs,” the Central Bank said adding that the Sri Lanka’s Board of Investments, Export Development Board and Bankers’ Association were involved in drafting the laws.

To qualify, indirect exporters have to open and maintain an account with an authorised foreign currency dealer of a local bank.

Products sold to direct exporters should also contain minimum 35