COPF approves 2026 foreign exchange regulations

The Committee on Public Finance (COPF), chaired by MP Dr. Harsha de Silva, has approved Foreign Exchange Regulations Nos. 01 and 02 of 2026 and an Order issued under Section 22 of the Foreign Exchange Act following discussions with Central Bank of Sri Lanka officials.

The committee examined provisions covering overseas investments, asset transfers by emigrants, and foreign exchange outflow controls. Central Bank officials informed the committee that temporary restrictions put in place to safeguard foreign reserves are being reviewed for gradual relaxation as economic conditions improve. Under the regulations, investment limits for business expansion overseas are set at USD 0.75 million for listed companies for approximately six months with consideration given to relaxing the limit in 2027 and USD 0.2 million for non-listed companies, with higher conversions requiring Monetary Board approval based on balance sheet evaluation.

Discussions also covered emigrant allowance procedures, export earning repatriations, tracking unauthorized outflows, and aligning Customs and banking data. During the meeting, COPF Chairman Dr. Harsha de Silva cautioned that unnecessary restrictions on foreign exchange outflows could discourage local businesses and inadvertently reduce foreign exchange inflows into the country. (Newswire)