The Committee on Public Finance has approved Foreign Exchange Regulations No. 01 and 02 of 2026, as well as the order issued under Section 22 of the Foreign Exchange Act.
The approval was granted following an extensive discussion with officials from the Central Bank of Sri Lanka, the Ministry of Finance, Customs and other relevant government institutions at a committee meeting chaired by Parliamentarian Dr. Harsha de Silva.
Foreign Investments by Sri Lankans
Under Regulation No. 01 of 2026, the committee discussed investments made overseas by Sri Lankan residents and domestic companies, eligible sectors for such investments, limits on transferring capital abroad and financial facilities required for business expansion.
Remittances of Migrants’ Assets
Under Regulation No. 02 of 2026, the meeting discussed procedures for migrants to transfer assets and capital held in Sri Lanka overseas, as well as provisions relating to the remittance of current income such as rental income, interest and dividends.
Restrictions on Foreign Exchange Outflows
Central Bank officials briefed the committee on temporary restrictions imposed to safeguard foreign exchange reserves. They stated that these restrictions would be gradually relaxed as economic conditions improve.
Meanwhile, the committee chairman questioned why the foreign investment limit for listed companies had been reduced to USD 0.75 million under the order when the limit specified in the regulations was USD 2 million.
Responding to this, Central Bank officials stated that the USD 0.75 million limit would apply only for a period of six months and that consideration would be given to relaxing the limit in 2027. The limit for unlisted companies is USD 0.2 million.
Officials further explained that investments within these limits could be undertaken with the approval of the Central Bank Board of Directors, based on the company’s balance sheet. During the discussion, it was also noted that this arrangement could provide greater advantages to larger businesses with higher levels of assets.
It was also revealed that measures had been taken to reduce discrepancies between banking and Customs data in order to prevent the irregular outflow of foreign exchange, while coordination between relevant institutions is also being strengthened.
However, committee members pointed out that excessive tightening of regulations and the imposition of unnecessary restrictions could discourage domestic businesses. Committee Chairman Dr. Harsha de Silva emphasized that imposing stringent restrictions on foreign exchange outflows could also create a risk of reducing the amount of foreign exchange entering the country.
