Foreign Exchange Management
The foreign exchange management function in Sri Lanka is exercised on behalf of the Government by the Central Bank of Sri Lanka, through the Exchange Control Department (ECD) established under the Exchange Control Act No. 24 of 1953.
The relaxation of exchange controls on current account transactions commenced in 1977 and culminated in 1994 with the liberalisation of all current account transactions, thereby permitting commercial banks (i.e. Authorized Dealers in foreign exchange) to release foreign exchange on such transactions free of any exchange restrictions.
The duties of the ECD are now concentrated mainly on monitoring of foreign exchange flows into and out of the country on current transactions and already liberalized capital transactions and advising the dealers in foreign exchange on good practices. The Exchange Control Manual which is updated annually, contains information on all existing regulations pertaining to transactions in the following areas.