Sri Lanka to seek full currency exchange liberation

The governor of Sri Lanka’s Central bank, Arjuna Mahendran, told the Financial Times that he would double foreign exchange reserves as the first step towards full currency liberation.

Labelling existing restrictions on the Sri Lankan rupee as “draconian” Mr Mahendran said the new government would seek to implement new legislation that looked to “slash” exchange controls via new legislation.


Speaking to the
Financial Times Mr Mahendran said,

“Our exchange control act is pretty draconian in how it restricts money coming in and out of the country, so what we are trying is to make it much simpler and more effective…When a Sri Lankan travels now you can’t just go and buy dollars. You have to jump through hoops. All of this has to be liberalised to engender more trade.”

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