The Foreign Exchange Act no. 12 of 2017 which abolishes the Exchange Control Act was brought into operation with effect from the 20th of November 2017.
The Foreign Exchange Act no. 12 of 2017 which abolishes the Exchange Control Act was brought into operation with effect from the 20th of November 2017. Regulations implementing the provisions of the Act have also been gazetted.
The new Act liberalizes foreign exchange control to some degree although there still remain considerable restrictions on persons resident in Sri Lanka for the purpose of the Act investing overseas.
The new regulations do not affect the ability for foreign (non-resident) investors to invest and remit out dividends. Several new types of accounts have been introduced and procedures have changed so any investor investing in Sri Lanka should take professional advice on the new framework.