Sri Lanka to ban holding foreign currency notes over 10,000 USD-Xinhua

Sri Lanka to ban holding foreign currency notes over 10,000 USD

Source: Xinhua| 2022-05-20 21:10:31|Editor: huaxia

COLOMBO, May 20 (Xinhua) -- Sri Lanka will soon implement laws banning anyone from holding foreign currency notes over 10,000 U.S. dollars, the central bank said on Friday.

Central Bank Governor Nandalal Weerasinghe told reporters that the law will be brought in to prevent the hoarding of foreign currency and draw them into the banking system.

He said that people are hoarding foreign currency, expecting the Sri Lankan rupee to depreciate further.

Weerasinghe said more than 35 percent of total foreign currency dealings take place outside the banking system.

He said that the Sri Lankan people need to have access to essential imports like fuel, gas and medicine without staying in queues, and for that foreign currency circulating in the country must be in the banking system.

Sri Lanka has been facing crippling foreign currency shortages, which have made it hard to import essential items.

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