By: Staff Writer
Colombo (LNW): The Ministry of finance has relaxed certain limitations/suspensions imposed on outward remittances of foreign exchange to maintain financial system stability.
New order has been issued by President Ranil Wickremasighe in his capacity as the country’s finance minister under Section 22 of the Foreign Exchange Act, No. 12 of 2017 (FEA) since 02.04.2020.
The restriction order earlier issued was aimed to temporarily suspend/limit certain outward remittances with a view to assist and maintain the financial system stability by minimizing the pressure on the exchange rate and preserving the foreign currency reserve position of the country.
This decision was taken by the. Minister of Finance, with the recommendation of the Monetary Board of the Central Bank and the approval of the Cabinet by considering the current and expected developments in the domestic foreign exchange market and with a view to further facilitate international transactions.
It has relaxed certain limitations on outward remittances for capital transactions and removed the restrictions on current transfers of emigrants, while continuing the other suspensions/limitations which were imposed under the previous Order. The new Order is effective for six (06) months from 28.06.2023.
First time claim of migration allowance of up to a maximum of US$ 30,000 has been changed up to a maximum of $50,000* under the new order.
Subsequent claims after the initial claim of migration allowance.u p to a maximum of $ 10,000* has been increased to a maximum of $20,000*.
Repatriation of current income or accumulated current income of the emigrants to a maximum of $30,000*has been removed.
Overseas investments through Outward Investment Accounts (OIAs) by eligible resident are now changed from a maximum of 415,000* to a maximum of $30,000*.
Invest in ordinary shares of a company outside Sri Lanka, for the purpose of expanding their core business in overseas. and Companies listed in the Colombo Stock have been exempted from the suspension with a limit of $200,000 and $ 100,00 respectively.
