Sri Lankan Rupee Surges Over 2% After Export Rule
Sri Lanka's rupee recorded a sharp surge of more than 2 percent on Wednesday (10) following a decisive move by the Central Bank to tighten rules on the conversion of export proceeds into the local currency, according to Bloomberg.The currency climbed as much as 2.1 percent to reach 330.15 against the US dollar, reported Bloomberg.The appreciation comes in the wake of a new central bank directive that significantly reduces the timeframe within which exporters must convert their foreign exchange earnings into Sri Lankan rupees.Sri Lanka on Tuesday (9) 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.Sources: Government Gazette / Bloomberg
