August 1, 2022
1 min read

Lanka mulls crackdown on forex violations

Given these developments and in the best interests of the nation, the CBSL warned all stakeholders of the economy that all efforts would be made to strictly monitor and ensure compliance…reports Asian Lite News

The Central Bank of Sri Lanka (CBSL) has warned that companies and individuals that do not comply with all regulations on foreign exchange transactions will be punished sternly, local media reported on Monday.

The CBSL said that a major factor contributing to the current crisis in the country is the lack of foreign exchange liquidity in the banking system, reports Xinhua news agency.

To ensure adequate foreign exchange liquidity in the banking system, the central bank had to impose surrender requirements on export earnings.

The success of these regulatory measures and the ability to achieve the intended outcomes depend on the support and cooperation from the trading community and the banking system, the bank said.

“However, it has been brought to the notice of the CBSL that certain market players are not being fully compliant with these regulations,” it said.

“Such practice, if continued, would deprive the people of the support expected from the government in difficult times, while undermining the moral obligation of ‘equal burden sharing’ that is expected of all stakeholders under difficult and extraordinary circumstances.”

Given these developments and in the best interests of the nation, the CBSL warned all stakeholders of the economy that all efforts would be made to strictly monitor and ensure compliance with all regulations on foreign exchange transactions.

“Any instances of non-compliance will be dealt with stern action within the provisions of all applicable laws,” it said.

Sri Lanka has been going through a severe economic crisis and the lack of foreign reserves is preventing imports of essential items.

ALSO READ: Lanka way? Moody’s, Fitch and S&P downgrade Pakistan’s rating

Previous Story

Afghanistan receives more cash aid

Next Story

Philippines rules out rejoining ICC

Latest from -Top News

Modi Leads Global South’s UNSC Reform Push

Modi had publicly welcomed the Pact of the Future’s inclusion of UNSC reform and described that development as a “good beginning The push for UN Security Council (UNSC) reform dominating this year’s

Baloch Activists Protest in Geneva

The demonstration aimed to bring international attention to the ongoing human rights violations in Balochistan…reports Asian Lite News Members of the Baloch National Movement (BNM) and allied human rights activists staged a

Trump Wishes Modi on 75th Birthday

Prime Minister Modi, in a post on X, called Trump his “friend” and thanked him for the wishes. US President Donald Trump spoke with Prime Minister Narendra Modi on Tuesday, reaching out

India Ready to Engage, Says Trump Advisor

Top official indicated that India’s oil purchases from Russia was hanging over trade relations between the two countries….reports Asian Lite News As US Assistant Trade Representative Brendan Lynch was in New Delhi
Go toTop

Don't Miss

Dalai Lama expresses solidarity with Lankan people

“His Holiness expresses hope for stability, prosperity and well-being to

Lanka further cuts key rates

The central bank said it took this decision at the