Business
Rules on conversion of export proceeds do not apply to workers’ remittances: CBSL
It is not mandatory for Sri Lankans working abroad to convert their remittances into Sri Lanka rupees, the Central Bank of Sri Lanka (CBSL) stated on Saturday, quashing rumours that CBSL rules require converting the entirety of workers’ remittances forcibly into Sri Lanka rupees (LKR) upon the receipt of such foreign exchange funds by the Licensed Banks.
“Recent rules issued by the CBSL in respect of repatriation and conversion of export proceeds to LKR have been misinterpreted by certain parties with vested interests. In particular, unfounded speculation has been mischievously spread that the CBSL rules require converting the entirety of workers’ remittances forcibly into LKR upon the receipt of such foreign exchange funds by the Licensed Banks. Rules on conversion of export proceeds DO NOT apply to workers’ remittances,” CBSL said.
“Migrant workers who channel their earnings through Licensed Banks and other formal channels may hold such funds in foreign exchange at any commercial bank. Accordingly, it is NOT mandatory for Sri Lankans working abroad to convert their remittances into LKR. However, those who wish to convert those earnings into LKR would be eligible to do so while those who do so under the “Incentive Scheme on Inward Workers’ Remittances” announced by the CBSL, would receive an additional incentive of Rs. 10.00 per US dollar until 31 January 2022,” CBSL said.
“Proceeds from “services exports” are foreign exchange earnings of resident Sri Lankans who provide tourism, professional services etc. to non-residents. These services exports would be subject to the rules on conversion of the residual export proceeds after adjusting for the permitted deductions. In this background, it would be clear that the recent rules in respect of repatriation and conversion of export proceeds into LKR are applicable only to “exporters of goods and services” from Sri Lanka, and that the new rules require exporters to convert only the residual balance of the export proceeds into LKR after deducting the permitted payments specified in the rules,” the Bank explained.
The Central Bank further said: “In fact, such permitted payments cover outward remittances in respect of current transactions, withdrawal of foreign exchange as permitted, debt servicing expenses, purchases of goods and services, and investments in Sri Lanka Development Bonds (SLDBs).”
“It must also be stated that similar repatriation and conversion rules for services export proceeds are applicable in other regional countries, including India, Bangladesh, Pakistan, and Thailand, as well.”
“The CBSL reiterates that it would continue to facilitate the enhancement of workers’ remittances in collaboration with the Government by incentivising funds remitted through formal channels, as previously announced, while taking stern legal action against all persons (those remitting and receiving) who indulge in illegal fund transfers. Accordingly, the general public is requested to remain vigilant and not be misled by false information and promises.”
“Licensed Banks are also advised to strictly adhere to the rules stipulated by the CBSL with regard to the conversion of foreign exchange proceeds of customers, and apprise their customers about such rules so as to avoid any misunderstanding,” the Central Bank said.
Analysts see budget-conscious international buying amid global economic pressures
This week’s Sri Lanka tea auction recorded the highest volume since February, with total offerings reaching 6.45 million kilograms (M/Kgs). However, the market displayed a mixed performance, with high-quality Broken Orange Pekoe (BOP) varieties facing price declines while lower-end teas saw appreciation.
Select Western BOP/BOPF teas, typically among the most sought-after, dropped by over Rs. 100 per kg, while others in the category saw smaller declines. Nuwara Eliya BOPs, known for their delicate flavor were mostly unsold, and when sold, fetched up to Rs. 200 per kg less than previous levels. Uva BOPs also declined by up to Rs. 50 per kg, reflecting weaker demand for premium liquoring teas.
In contrast, teas at the lower end of the market fared better. Below Best BOPs remained steady, while BOPFs in the same category fell by Rs. 50 per kg or more, influenced by inconsistent quality. Meanwhile, Low Grown PF1s (CTC grade) saw a firmer trend, with some appreciation in value.
The Leafy and Semi-Leafy sector saw Select Best BOP1s maintain stable prices, while OP1s (Orange Pekoe) were irregular—well-made varieties eased, but others appreciated. In the Tippy segment, high-priced FBOPs dipped, but Best and Below Best grades held firm, with the lowest-end teas gaining value.
Despite price corrections, all categories met fair demand, with Low Growns dominating at 2.6 M/Kgs. The Premium catalogue showed selective firmness for very tippy teas, while others eased or declined.
Analysts suggest that the dip in high-quality teas may reflect subdued demand from key export markets, while the resilience of lower-grade teas indicates steady domestic and budget-conscious international buying.
“With global economic pressures persisting, auction trends may continue fluctuating in the coming weeks,” they said.
– Reported using data from Forbes & Walker Tea Brokers
By Sanath Nanayakkare
The publication on the Financial Statements and Operations of the Central Bank of Sri Lanka 2024, a requirement under Section 99(2) of the Central Bank of Sri Lanka Act, No 16 of 2023, was presented to the President and the Minister of Finance, Planning and Economic Development, Anura Kumara Dissanayake, by Dr. Nandalal Weerasinghe, the Governor of the Central Bank of Sri Lanka, 29 April.
Dr. N S Kumanayake, Secretary to the President, Ms. Lasanthi Sirimanne, Chief Accountant and Ms. Samudra Jayasundera, Director Policy Review and Monitoring Department of the Central Bank were also present at this occasion.
The Financial Statements and Operations of the Central Bank of Sri Lanka 2024 present an overview of the Central Bank’s institutional performance during the year 2024. The publication is structured into three main components: Operational Insights, Financial Statements, and Supplementary Information.
The Operational Insights section outlines the Central Bank’s strategy and its core responsibilities, including maintaining domestic price stability, ensuring financial system stability, overseeing payment and settlement systems, managing currency issuance, and strategic communication. This section also covers the Bank’s international engagements, the execution of other entrusted responsibilities including agency functions, and internal management arrangements.
The Financial Statements section presents the IFRS-compliant financial statements of the Central Bank of Sri Lanka for the year ended 31 December 2024, along with the independent report of the Auditor General. This segment also includes a financial review, providing an analysis of the Bank’s financial performance during the year.
The Supplementary Information section provides details on the Bank’s regional presence, the list of institutions regulated and supervised by the Central Bank, and a summary of corporate information.
The interactive PDF of this publication can be accessed through; https://www.cbsl.gov.lk/en/publications/economic-and-financial-reports/financial-statements-operations
Business
Emirates deepens strategic partnership with Sri Lanka Tourism Promotion Bureau to support local travel industry
At the Arabian Travel Market 2025, Emirates and the Sri Lanka Tourism Promotion Bureau (SLTPB) have renewed their partnership aimed at further developing the country’s tourism and trade industries. The partnership was sealed through a Memorandum of Understanding (MoU) between the two parties.
The MoU was signed by Essa Sulaiman Ahmad, Emirates’ Senior Vice President of Commercial West Asia & Indian Ocean and Sampath Nissanka, Managing Director – Sri Lanka Tourism Promotion Bureau. The signing ceremony was also attended by Adnan Kazim, Emirates’ Deputy President and Chief Commercial Officer; Alexi Gunasekera, Consul General-designate of Sri Lanka to Dubai and the Northern Emirates in addition to other representatives of the airline and tourism board.
First inked in 2022, the renewed MoU will strengthen the collaboration between Emirates and SLTPB, with both the airline and tourism body reiterating their commitment to actively promote Sri Lanka as a destination to key markets within Emirates’ network.
Through joint initiatives, such as developing excursions and familiarization trips to promote the island nation to key feeder markets, Emirates and SLTPB aim to grow the tourism industry of the popular Indian Ocean destination by showcasing the destination to customers across the airline’s global network.
The joint efforts to boost the nation’s tourist industry have supported a steady increase in inbound traffic into the island, which recorded just over 2 million visitors in 2024. Between April 2024 and March 2025, Emirates carried over 240,000 passengers into Sri Lanka from key markets around its network including Russia, the UK, Germany, Australia, China, and the US, among others.
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