The Central Bank of Sri Lanka (CBSL) has announced a set of revised regulations aimed at tightening the timeframe for exporters to convert their leftover foreign exchange earnings into Sri Lankan Rupees.
Entitled “Repatriation of Export Proceeds into Sri Lanka Rules No. 2 of 2026,” this new guideline was published in an Extraordinary Gazette on June 9, 2026. It modifies the existing regulations to enhance the influx of foreign currency into the national economy.
Previously, under the rules established in 2024, exporters were allowed three calendar months to utilize their foreign exchange earnings for approved payments before being required to convert any remaining “residual” funds into Rupees. The updated regulation considerably reduces this timeframe, mandating that exporters convert all residual funds by the 10th day of the month following the receipt of those funds.
This new conversion requirement applies to both direct and indirect exporters who receive foreign currency from their export activities.
Exporters can still use their foreign currency for several authorized transactions prior to mandatory conversion, including:
- Current business transactions, now explicitly including one-month commitments.
- Debt servicing and repayment of approved foreign currency loans, also including one-month loan commitments.
- Dividend payments to non-resident investors and salaries for expatriate workers.
- Travel expenses related to export activities.
- Investments in government-issued foreign currency debt securities, limited to 10% of the foreign currency received.
These regulations, endorsed by CBSL Governor P. Nandalal Weerasinghe, will take effect immediately upon approval from Parliament. The 180-day mandatory repatriation period for all export proceeds, as stipulated in the original 2024 regulations, remains unchanged.
The accompanying Gazette notification is provided below:
Financial Chronicle Biz English | Sri Lanka Business News.
