Foreign Exchange Management

The foreign exchange management function in Sri Lanka is exercised by the Central Bank of Sri Lanka on behalf of the Government through the Exchange Control Department. Foreign exchange management policies are based on the provisions of the Exchange Control Act No. 24 of 1953. The Exchange Control Act regulates dealings in gold, currency, payments, securities, debts, imports and exports, transfer and settlement of property.

Sri Lanka has liberalized its exchange control regime substantially since opening its economy in 1977, achieving complete current account convertibility in 1994 and substantially liberalizing capital transactions over the years.

The Central Bank of Sri Lanka with the objective of expanding the economy of the country and to further integrate the Sri Lankan economy with the global economy, is in the process of further relaxing and simplifying rules and regulations applicable for foreign exchange transactions.