The government has taken steps to extend the suspension of foreign exchange remittances for another six months from July 02.
The proposal made by Hon. Mahinda Rajapaksa, Minister of Finance, to proceed with the relevant activities, was approved by the Cabinet.
The move was taken in view of the possible negative impact on the country’s foreign reserves and foreign exchange market due to the Covid-19 epidemic.
An order has been issued under Section 55 of the Foreign Exchange Act No. 19 of 2017 to suspend external remittances related to certain transactions.
The orders were due to expire on July 1 this year.
The Central Bank of Sri Lanka (CBSL) has stated that these directives should be further implemented to reduce the potential risk in the foreign exchange market and to maintain the stability of the financial system.
