Sunday, August 14, 2022

Sri Lanka threatens to clamp down on forex policy violators

The CBSL said on Monday that a major factor contributing to the current crisis in the country is the lack of foreign exchange liquidity in the banking system,

• August 1, 2022
Sri Lanka’s Central Bank (CBSL)
Sri Lanka’s Central Bank (CBSL) [Photo Credit: CGTN]

Sri Lanka’s Central Bank (CBSL) has warned that companies and individuals that do not comply with all regulations on foreign exchange transactions will be punished sternly, local media reported.

The CBSL said on Monday that a major factor contributing to the current crisis in the country is the lack of foreign exchange liquidity in the banking system.

“To ensure adequate foreign exchange liquidity in the banking system, the central bank has to impose surrender requirements on export earnings.”

The bank said that the success of these regulatory measures and the ability to achieve the intended outcomes depend on the support and cooperation from the trading community and the banking system. 

“However, it has been brought to the notice of the CBSL that certain market players are not being fully compliant with these regulations,” the CBSL said.

“Such practice, if continued, will deprive the people of the support expected from the government in difficult times, while undermining the moral obligation of ‘equal burden sharing’ that is expected of all stakeholders under difficult and extraordinary circumstances.” 

Given these developments and in the best interests of the nation, the CBSL warned all stakeholders of the economy that all efforts would be made to strictly monitor and ensure compliance with all regulations on foreign exchange transactions.

“Any instances of non-compliance will be dealt with stern action within the provisions of all applicable laws,” the CBSL said.

Sri Lanka has been going through a severe economic crisis and the lack of foreign reserves is preventing imports of essential items.  


We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Ann Agom-Eze and Governor David Umahi


Ebonyi APC expels Gov. Umahi’s rival Agom-Eze

Ms Agom-Eze was Governor David Umahi’s main challenger for the Ebonyi South senatorial ticket of the APC ahead of the 2023 polls.

Federal Capital Territory Administration (FCTA)


FCTA to prosecute defaulting Abuja property owners over N29 billion ground rent

Mr Sule explained that the move was part of efforts by the FCTA to recover over N29 billion Ground Rents owed by property owners in the territory.

Taiwo Awoniyi


Awoniyi on target as Nottingham Forest end 23-year drought 

Awoniyi latched on to a loose ball in the box and hit a paved shot into the bottom left corner for Forest’s first goal.

Father Godfrey Gopep


2023: Christians must take deliberate actions not just wait on God, Catholic priest charges 

The priest challenged the people to put ethnic, regional and religious sentiments aside and vote for persons that meant well for the country.


Illegal Mining: Ministry short-staffed, underfunded, says official

Mr Muhammed said more staff, such as mining engineers, geologists among others, are also needed to reach all the hinterland where mining activities are going on.

NDLEA spokesman Femi Babafemi


Crystal Meth concealed in smoked fish consignment intercepted at Lagos airport

Mr Babafemi said that the drugs were concealed in heads of fishes packed in cartons for export to Dubai, the United Arab Emirate.