Sri Lanka To Ban Citizens From Holding Foreign Currency Notes Above $10,000

Sri Lanka Central Bank on Friday announced that laws will soon be implemented to ban anyone from holding foreign currency notes over 10,000 U.S. dollars.

The Central Bank Governor, Nandalal Weerasinghe, told reporters that the planned law is aimed to prevent the hoarding of foreign currency and draw them into the banking system.

He said that hoarding foreign currency would make the Sri Lankan rupee depreciate further.
According to him, more than 35 per cent of total foreign currency dealings take place outside the banking system.

He said that the Sri Lankan people needed to have access to essential imports like fuel, gas and medicine without staying in queues, and for that, foreign currency circulating in the country must be in the banking system.

Sri Lanka has been facing crippling foreign currency shortages, which have made it hard to import essential items.

(Xinhua/NAN)