Sri Lanka’s exporters and foreign currency market players have expressed their dismay on the Central Bank’s decision to crack down on those who violate regulations on foreign exchange transactions, including repatriation requirements of export proceeds, conversions, and mandatory sales to the CBSL etc.
The Central Bank vowed to take stern action within the provisions of all applicable laws against any instances of non-compliance with all regulations on foreign exchange transactions strictly monitoring such practices.
Sri Lanka’s top export chamber has urged the Central Bank (CB) to present facts and figures to support the latter’s argument that exporters are not remitting export proceeds to Sri Lanka.
The National Chamber of Exporters (NCE) said that the CB should monitor repatriation and conversion of export proceeds to the country with the support of a robust system and to penalise those who do not conform to such formalities.
The NCE mentioned that exporters have registered export invoices with the CB through the Customs CUSDEC. As per ruling by the CB, exporters have to remit the full export proceedings to Sri Lanka within 180 days, resulting in a penalty if the stipulated days have been exceeded.
However, if such delays were due to genuine reasons of not accepting goods on time, the CB has recalled the penalties imposed.
Yet, the CB should have a mechanism to check the time difference between filing the custom declaration and remittance of export proceeds, making a note that exporters are permitted to 180 days’ credit.
In a practical world, export proceedings of the previous month will be effected anytime between 01 to 25 weeks, the NCE claimed.
The Chamber requested the CB to provide source verification of figures provided, noting that when Sri Lanka Customs reflects export figures each month, it should be matched against the approved credit period for repatriation of export proceeds.
The NCE said that simply highlighting long years of malpractice by exporters of not remitting forex earnings, is only showcasing the ineffective governance of this highest state authority. “
The Exporters’ Association of Sri Lanka (EASL) welcomes the measures taken by the CBSL, as outlined in their communication of 29thJuly titled “Importance of Fair Play by all Stakeholders of the Economy in countering the current unprecedented economic crisis”.
The EASL is committed to ensuring that its members abide by the requirements of the law in respect of the repatriation of export proceeds and the surrender of residual earnings.
The Joint Apparel Association Forum said it welcomes measures taken by the Central Bank in monitoring foreign exchange transactions and outflows.
