Sri Lanka central bank tightens trade rules to improve forex reserves

[COLOMBO] Sri Lanka's Central Bank on Saturday (Mar 12) tightened restrictions on exporters requiring them to repatriate foreign exchange earnings within 180 days of transactions in a bid to improve their foreign exchange reserves to stabilise the economy.

The Central Bank's efforts to tighten trade regulations include mandatory currency conversion for exporters of goods and services to convert their foreign exchange earnings into local Sri Lankan rupees.

The latest order come as Sri Lanka faces its worst financial crisis in over a decade with foreign exchange reserves standing at a new low of $2.31 billion.

The country is struggling to pay for critical imports including fuel, food and medicines. REUTERS