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The Central Bank of Sri Lanka issues Circulation Standard Commemorative Coin to Mark its 70th Anniversary

The Central Bank of Sri Lanka (CBSL) commenced operations in August 1950 and completed 70 years of its unique and valued contribution to the prosperity of Sri Lanka. To mark its 70th Anniversary, CBSL issued an uncirculated commemorative coin (Aluminum Bronze) in the denomination of Rupees 20 on 31 December 2020. Concurrently to the above, CBSL has also decided to issue a circulation standard commemorative coin (Nickle pated Steel) in the denomination of Rupees 20 with the same design of the above uncirculated commemorative coin. Detailed description and specification of the coin is given below.

Repatriation and Conversion of Export Proceeds: Why are these measures needed?

On 18 February 2021, the Monetary Board issued Rules in respect of repatriation of export proceeds into Sri Lanka and conversion of such proceeds into Sri Lanka rupees, and also issued Operating Instructions to Licensed Banks on the same. The above Rules and Operating Instructions, which would supplement the repatriation requirement already in place, were issued in order to strengthen the foreign exchange situation of the country and to dampen speculative activity that caused some excessive volatility in the exchange rate. Since issuing these Rules and Operating Instructions, there have been some media reports, which argued that such rules will discourage Sri Lankan exporters from expanding their domestic businesses. These reports also implied that the legitimate earnings of exporters were being usurped by the banking system and the Government.

NCPI Based Inflation Decreased in January 2021

Headline inflation as measured by the year-on-year (Y-o-Y) change in the National Consumer Price Index (NCPI, 2013=100)1 decreased to 3.7 per cent in January 2021 from 4.6 per cent in December 2020. This was due to the statistical effect of the high base prevailed in January 2020. Meanwhile, Food inflation (Y-o-Y) decreased to 5.9 per cent in January 2021 from 7.5 per cent in December 2020. Further, Non-Food inflation (Y-o-Y) decreased to 1.8 per cent in January 2021 from 2.2 per cent in December 2020.

Repatriation of Export Proceeds into Sri Lanka

The Monetary Board has issued Rules as published in the Gazette Extraordinary No. 2215/39 dated 18.02.2021 in respect of receipt of export proceeds into Sri Lanka and conversion of such export proceeds into Sri Lanka Rupees.

Accordingly, following Rules are imposed with effect from 18 February 2021 until further notice.

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