Category: Forex
Central Bank requests Govt to tax export profits at 28-pct where forex is not repatriated & converted
Sri Lanka’s Central Bank requests the government to tax profits of exporters at 28 percent and not 14 percent where forex is not repatriated & converted. Unveiling the Six-Month Road Map for Ensuring Macroeconomic & Financial System Stability, Governor Ajith Nivard Cabraal said that there will be specified limits. Service related foreign exchange inflows will […]
Central Bank recommends complete repatriation of export proceeds within reasonable period
Steps must be taken to strengthen the systems to ensure monitoring and to implement measures that lead to the complete repatriation and conversion of export proceeds within a reasonable period, the Central Bank said. Releasing an information series note on the current status of the export earnings, the Central Bank justified that it would be […]
”s Investors Service
Coupled with limited external financing options and pandemic-related lockdown weighing on the recovery of non-debt generating inflows, the FX reserves data points to a rising risk of debt default, Moody’s Investors Service said in a new report. According to the report, without sizeable external financing that is relatively secure and long-term, they expect foreign exchange […]
Sri Lanka official reserves slightly improve to USD 3.6bn by end August
Sri Lanka’s gross official reserves were 3,550.7 million US dollars by the end of August, up from 2,805.9 million US dollars in July, the latest Central Bank data showed. This does not include the swap facility signed with the People’s Bank of China (PBoC) of RMB 10 bn (equivalent to approximately USD 1.5 bn). By […]
Sri Lanka calls for Request for Proposals for Foreign Currency Term Financing Facility
The Government of Sri Lanka intends to raise Foreign Currency Term Financing Facility (FCTF) denominated in United State Dollars (USD), Euro, Chinese Renminbi (RMB) and Japanese Yen (Yen) in 2021. The FCTF is expected to be raised at a fixed rate or a floating rate with a maturity period of 1 year or more.The proceeds […]
Sri Lanka receives USD 787Mn SDR from IMF & USD 150Mn swap from Bangladesh: CBSL
Central Bank on Tuesday officially announced that Sri Lanka received its share of the global SDR allocation by the IMF and the initial disbursements under the bilateral currency swap arrangement between the Central Bank of Sri Lanka and the Bangladesh Bank. The SDR allocation received by Sri Lanka was equivalent to US dollars 787 million […]
No new restrictions for making payments in foreign exchange on credit or debit cards: Central Bank
The public is informed that the Central Bank has not introduced any new restrictions on the use of EFTCs, i.e., credit cards, debit cards and other stored value cards, and holders of such cards are permitted to use them to make payments to persons resident outside Sri Lanka in respect of current transactions of personal […]
CBSL tightens monetary policy to curb inflationary pressures; rectify external sector imbalances
Sri Lanka’s Central Bank has tightened its monetary policy stance to address the imbalances in the external sector and to preempt the buildup of excessive inflationary pressures over the medium term. Accordingly, the Monetary Board of the Central Bank has decided to increase the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate […]
Licensed Banks have not been asked to “Devalue” Sri Lanka Rupee: Central Bank
The Central Bank said it has observed messages being circulated claiming that licensed banks have been officially asked to devalue the Sri Lanka rupee with immediate effect. “The general public is hereby informed that there is no basis whatsoever for such claims, and the CBSL has not made any change to its stance or the […]
Sri Lanka expects nearly USD 2.65bn forex inflows over next 3 months: Nivard Cabraal
State Minister of Money & Capital Markets Ajith Nivard Cabraal stresses that what is most important is the cash flow, not the Reserve level at a given time. Experienced finance managers will keep a close watch on the cash flows as they very well know that temporary fluctuations in the reserve level may occur, but […]
Sri Lanka’s official reserves remain at USD 4bn level by the end of June
Sri Lanka’s official reserves were 4 billion US dollars (USD 4,027.9mn) by the end of June, unchanged from 4 billion US dollars (USD 4,032.8mn) in May, the latest Central Bank data showed. This does not include the swap facility signed with the People’s Bank of China (PBoC) of RMB 10 bn (equivalent to approximately US$ […]
Sri Lanka restricts outward remittances for 6 months to preserve foreign exchange position
With a view to assist and maintain the financial system stability by minimizing the pressure on the exchange rate and preserving the foreign currency reserve position of Sri Lanka, the Finance Minister with the recommendation of the Monetary Board of the Central Bank and the approval of the Cabinet has issued an Order under Section […]