The Central Bank of Sri Lanka has announced that it will pay an additional premium of Rs.10 for US dollars converted into rupees by expatriate workers during the month of December.
In a statement, the CBSL said the Monetary Board has decided to pay an incentive of Rs.8 per US dollar for workers’ remittances, in addition to the existing incentive of Rs.2 under the “Incentive Scheme on Inward Workers’ Remittances”.
Individuals will be eligible for the additional premium when funds are remitted through Licensed Banks (LBs) and other internationally accepted formal channels and converted into Sri Lankan rupees during the period from the 1st of December to the 31st of December.
The additional incentive provided by the CBSL is expected to attract more workers’ remittances to the country through the formal banking channels, thereby improving the foreign currency liquidity in the domestic foreign exchange market.
At the same time, several measures are being taken by the CBSL and the law enforcement authorities to curtail informal fund transfer channels, which would, in turn, further encourage migrant workers to use formal channels to remit their hard-earned foreign exchange to the benefit of their dependents.
Meanwhile, Governor of the Central Bank Ajith Nivard Cabraal said bank accounts of those who distribute and receive funds through unlawful money transmission methods will be frozen with immediate effect.
Taking to twitter, he said the CBSL urges all migrant Sri Lankans to use only legal channels to repatriate their earnings.