The upcoming Exchange Management Act adds muscle to the Finance Minister, and puts stiff financial penalties on wilful defaulters.
Currently in gazette form pending parliamentary approval, the law allows locals to take out up to Rs.
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10,000 when leaving the country.
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rnSri Lankans are now legally allowed to hold foreign exchange in overseas bank accounts, without disclosing it to the monetary authorities. They can use the funds to make capital or current account transactions within or outside Sri Lanka.
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rnThe Finance Minister will have the powers to determine the quantum of foreign exchange/assets that can be converted by converting the rupee. rn
rnFuture foreign exchange deals will be whetted on a capital and current account basis, to allow a free flow of funds. Presently, they are authorised on a resident or non-resident basis.
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rnUnder the statute, special facilities will be give to import/export foreign exchange or Sri Lankan notes, hold funds in banks, foreign currency credit facilitie