📈 CBSL Mandates Monthly Rupee Conversion for All Residual Export Proceeds

The Central Bank of Sri Lanka (CBSL) has issued a new Extraordinary Gazette tightening rules for exporters to convert residual foreign exchange earnings into Sri Lanka Rupees, aiming to accelerate foreign currency inflows into the domestic economy. • New Mandate: Exporters must now mandatorily convert all residual export proceeds on or before the 10th day of the month following the receipt of those proceeds. This significantly shortens the previous three-calendar-month window. • Scope: Applies to both direct and indirect exporters who receive foreign currency payments from export proceeds. The standard 180-day mandatory repatriation period remains unchanged. • Authorized FX Uses: Before the mandatory monthly conversion, exporters can still utilize foreign currency for: - Current business transactions and debt servicing (explicitly including 1-month commitments). - Dividends to non-resident investors and expatriate salaries. - Export-related travel expenses. - Investments in government-issued foreign currency debt securities (capped at 10% of proceeds). • Status: Signed by CBSL Governor P. Nandalal Weerasinghe, the rules will take effect immediately upon receiving Parliamentary approval.