Sri Lanka Tightens Controls on Import Payments with New Foreign Exchange Measures

The Government of Sri Lanka has introduced a new regulatory framework aimed at strengthening oversight of outward remittances linked to import transactions, with the measures taking effect from today (19).

The new regulations were announced through a Gazette Extraordinary issued by the Ministry of Finance, Planning and Economic Development and represent an amendment to the existing Special Import License and Payment Regulations introduced in 2011.

Issued under the Imports and Exports (Control) Act by Finance Minister Anura Kumara Dissanayake, the revised rules seek to improve transparency in foreign exchange payments connected to imports while reinforcing coordination between commercial banks and the Sri Lanka Customs Department.

Under the updated framework, commercial banks are now required to assign a unique identification number to every remittance related to imports. Banks must also promptly transmit detailed transaction information to Sri Lanka Customs.

The information to be shared includes the importer’s Taxpayer Identification Number (TIN), addresses of both the importer and beneficiary, beneficiary banking details, bank and branch codes, payment currency and value, delivery and payment terms, remittance date, proforma invoice number, and details of the imported goods.

A major feature of the revised regulations is the introduction of compulsory registration for importers making advance payments for goods. Before any advance payment can proceed, importers must register with the Sri Lanka Customs Department and obtain eligibility status.

Commercial banks have also been prohibited from processing advance payments unless the importer has completed the required Customs registration.

Authorities stated that the measures are intended to strengthen monitoring mechanisms, improve accountability in import transactions, and help prevent the misuse of foreign exchange.

To facilitate implementation, the Controller General of Imports and Exports is expected to issue operational guidelines to the Director General of Customs, commercial banks, and other relevant institutions.