Sri Lanka’s foreign exchange law to remove criminal offences

Mar 23, 2017 (LBO) – Sri Lanka’s proposed Foreign Exchange Bill is to move away from criminal offences which are considered too harsh.

Except for 47 nations, most countries have liberalized exchange control laws and moved away from criminal offences towards civil penalties.

The existing law has not been successful in preventing outflow of foreign exchange through legal and non-legal channels, a statement on cabinet decisions said. The proposed law which received the go ahead from the Attorney General and the cabinet will be published in the gazette before being presented in Parliament. The new law seeks to provide incentives for Sri Lankans having money outside the country to remit that money to Sri Lanka without having to face with criminal penalties. The proposed law has also incorporated provisions for the minister to intervene where foreign exchange outflows can be a threat to the national economy.