SL’s new Forex Act in force on Nov.1
View(s):Though Sri Lanka’s new Foreign Exchange Act got a second, new operational date – November 1, 2017 – it is unlikely to come into force since the relevant regulations are yet to be gazetted, informed official sources said.
The limits and conditions under which the related foreign exchange rules will apply should also be published in the gazette for the law to become valid, a senior official told the Business Times.
This week, the government an earlier date of October 15 for Sri Lanka’s new Foreign Exchange Act, No. 12 of 2017 to become operational, and gazette the new date.
Sri Lanka’s banking system is currently not geared to cushion the impact of foreign exchange outflows due to liberalising of foreign exchange trasactions, a veteran banker said.
But according to Central Bank sources, there wouldn’t be any major relaxation of capital account because the country’s external sector is sensitive to fully relax the capital movements.
“Practical evidence shows that, the country could attract more foreign investment through liberalisation of transactions as the investors will bring more money as there are no restrictions in taking money out,” he added.
The new laws are seen liberalising foreign exchange transactions and allowing a freer flow of foreign currency into and out of Sri Lanka.