The Central Bank of Sri Lanka (CBSL) has issued a new set of rules further tightening the timeline for exporters to convert their residual foreign exchange earnings into Sri Lanka Rupees.

The "Repatriation of Export Proceeds into Sri Lanka Rules No. 2 of 2026," issued via Extraordinary Gazette on June 9, 2026, amends the existing framework to accelerate the flow of foreign currency into the domestic economy.

Under the previous regulations established in 2024, exporters were permitted a window of three calendar months to utilize their proceeds for authorized payments before being required to convert the remaining "residual" balance into Rupees. The new directive significantly shortens this period; exporters must now mandatorily convert all residual proceeds on or before the 10th day of the month following the receipt of those proceeds.

This expedited conversion requirement applies to both direct exporters and indirect exporters who receive foreign currency payments from export proceeds.

Before the mandatory conversion, exporters may still utilize their foreign currency for several authorized payments, including:

• Current business-related transactions, now explicitly including one-month commitments.
• Debt servicing and repayment of permitted foreign currency loans, including one-month loan commitments.
• Payment of dividends to non-resident investors and salaries to expatriate employees.
• Travel expenses related to the export business.
• Investments in government-issued foreign currency debt securities, capped at 10% of the received proceeds.

These rules, signed by CBSL Governor P. Nandalal Weerasinghe, will come into effect immediately upon receiving Parliamentary approval. The 180-day mandatory repatriation period for all export proceeds remains in place as per the underlying 2024 regulations.

The relevant Gazette notification is attached below: