The government has decided not to implement the proposed additional incentive scheme for remittances of foreign workers and net earnings of exporters.
Considering the recent trends.
The Central Bank of Sri Lanka says that as a result of their decision to allow the exchange rate to be flexible, the exchange rate has now exceeded the level of incentives provided for foreign workers to encourage conversation of remittances and export earnings to the Sri Lankan Rupee.
Accordingly, the existing exchange rate will result in higher returns in rupees for foreign workers’ remittances as well as higher net worth of exporters’ net earnings.
According to the latest official data, the Central Bank has already shown a significant increase in the conversion of foreign exchange earnings earned by formal ways, into Sri Lankan Rupees by foreign workers and exporters due to the significant rise in the exchange rate in March 2022.