Limit on Foreign Currency Note Holdings in Sri Lanka Reduced Further
Posted 21,May

By Chehan Jayasuriya

In Local News

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Releasing a statement, Central Bank Governor Dr. Nandalal Weerasinghe stated that the limit on foreign currency note holdings in Sri Lanka would be reduced to 10,000USD from 15,000USD. He further noted that legal actions would be taken against those holding over the said amount for over three months.

A grace period will be given to those holding foreign currencies over the imposed limit. Following the end of the grace period, they will be expected to deposit the money in the local banking system.

Under Sri Lanka’s foreign exchange law, currency notes held against contravening the rules will be seized, CB Governor said. Accordingly, two seizures had taken place recently.

Police and central bank officials will take action to seize foreign currency held by the public.

Currency noteholders could also deposit in dollar accounts of banks, subject to satisfying know your customer processes of banks.

Dr. Weerasinghe further stated that Dollar to Rupee conversions would yield around 20% returns on Treasury bills.