On 12 March 2022, Central Bank of Sri Lanka tightened trade restrictions, requiring exporters to repatriate foreign exchange proceeds within 180 days after transactions to replenish the country’s diminishing foreign exchange reserves. The article is about Sri Lanka Tightened Trade Rules To Boost Currency Reserves.
With only $2.31 billion in reserves, Sri Lanka faces its most significant financial crisis in almost a decade, unable to pay for crucial imports such as gasoline, food, and medications. According to the bank’s actions, exporters of products and services must convert their foreign exchange revenues into Sri Lankan rupees.
“All licensed banks are required to monitor receipts of goods to Sri Lanka strictly,” the central bank stated in a notification, adding that it “has the right to initiate action against non-compliance by any exporter or licensed banks.”
Most gasoline prices were raised by 55 to 95 rupees (22-24 cents) per litre on 11 March, 2022 by the state-run oil firm to compensate for losses when Sri Lanka implemented a flexible exchange rate, which caused the currency to fall 30 percent to 260 rupees to the dollar.
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