CBSL Mandates Exporters Convert Residual Proceeds to LKR; New Import Monitoring System Introduced

In addition to the mandate for exporters, Sri Lanka has introduced a new regulatory overhaul for the import sector, aiming to tighten monitoring and improve transparency in foreign payment transactions. A new system requires individuals and businesses involved in import transactions, particularly those making advance payments, to follow mandatory procedures across all financial institutions. This move, detailed in a special Gazette notification issued under the President's signature, is described as part of a broader effort to strengthen oversight of foreign exchange flows.

The Committee on Public Finance (COPF) has raised concerns regarding the Central Bank of Sri Lanka's (CBSL) decision on converting export proceeds. COPF warned that the measure, which they perceive as shortening the conversion period, could undermine market confidence and contribute to foreign exchange market volatility. CBSL officials stated the rule was implemented in response to exchange rate fluctuations and foreign exchange shortages.

A new Extraordinary Gazette notification, dated June 9, 2026, has introduced the 'Repatriation of Export Proceeds into Sri Lanka Rules No. 2 of 2026'. These rules mandate that exporters must convert any remaining balance of their foreign currency earnings into Sri Lankan rupees on or before the 10th day of the following month.