New Gazette Rule Tells Exporters to Convert Forex Within 10 Days

COLOMBO (News 1st); Sri Lanka has unveiled a sweeping new regulatory measure that compels exporters to convert foreign exchange earnings into Sri Lankan rupees within a strict timeframe.

The new directive, issued through an Extraordinary Gazette notification dated June 9, 2026, by the Central Bank of Sri Lanka (CBSL), introduces “Repatriation of Export Proceeds into Sri Lanka Rules No. 2 of 2026.”

The rules mandate that exporters who receive proceeds in foreign currency must convert any remaining balance into Sri Lankan rupees on or before the 10th day of the following month. The requirement comes after such proceeds are utilized only for specifically authorized payments.

Under the revised framework, exporters are allowed to use their foreign currency earnings for a limited set of transactions before conversion becomes compulsory.

These include payments related to current business operations, servicing of foreign currency loans, and meeting one-month financial commitments tied to exports.

Businesses may also use funds to pay dividends to non-resident investors, salaries of expatriate employees, and facilitate travel-related expenses connected to export activities.

Additionally, the regulation permits exporters to invest up to 10 percent of their foreign exchange proceeds in foreign currency-denominated debt securities issued by the Government of Sri Lanka.

Crucially, the new rules extend beyond direct exporters. Indirect exporters, those who provide goods and services tied to export activity and receive foreign currency payments, are also required to convert remaining funds into rupees within the same 10-day deadline after utilizing them for approved transactions.