Exporters Now Authorized to Invest in Local Dollar Bonds 📈

The Government has issued Regulations to Repatriation of Export Proceeds No. 01 of 2026 via Extraordinary Gazette, expanding the scope for exporters to utilize repatriated earnings for domestic foreign-denominated investments. • New Investment Access: The amendment updates the 2024 rules under the Central Bank of Sri Lanka (CBSL) Act, allowing exporters to invest in local loan instruments denominated in foreign exchange, a facility previously restricted to incorporated commercial banks. • Market Impact: This policy shift aims to increase demand for local Dollar Bonds, ensure competitive pricing, and deepen the domestic foreign exchange market. • Economic Objective: By enabling the apparel, tea, and ICT/BPM sectors to channel proceeds into these instruments, the move seeks to strengthen national reserves and promote economic stability through better classification of foreign exchange sources. • Regulatory Timeline: Following the initial issuance on 10 December 2025, these updated regulations await formal parliamentary concurrence to broaden participant eligibility.