The Central Bank of Sri Lanka has removed the rule that Sri Lankan companies had to convert all the dollar income earned from the goods they export into rupees.
The Central Bank also mentioned that the law that the dollar income received on exports must be converted into rupees was enacted as a solution to the dollar shortage in the country.
But the export companies objected to it, alleging that due to that law, the export companies would be in great difficulty.
As Commercial-grade banks in Sri Lanka do not issue letters of credit, export companies pointed out that they should keep some amount of dollars they earn to import the raw materials needed for the production of goods.
The law imposed by the Central Bank on the 12th of last year has been removed with effect from today (16).
