Colombo: Prime Minister Ranil Wickremesinghe has ordered new restrictions on the amount of foreign currency held by individuals due to the sharp decline in foreign exchange in Sri Lanka. Sri Lanka is experiencing an unprecedented level of foreign exchange reserves and is facing a severe economic crisis. People are left without basic necessities, including food and fuel. The country has stopped repaying foreign loans due to lack of foreign exchange reserves. Sri Lanka is suffering from the irreversibility of loans from countries including India and the International Monetary Fund.
Last month, the Governor of the Central Bank of Sri Lanka, Nandalal Weerasinghe, said that the government had decided to restrict foreign currency holdings to an individual’s limit to control the declining foreign exchange reserves. Similarly, Prime Minister Ranil Wickremesinghe yesterday imposed various restrictions on the possession of foreign currency by the public. Accordingly, the limit for individuals to hold foreign currency has been reduced from US $ 15,000 to US $ 10,000. Excess foreign currency is allowed to be deposited or sold to an authorized dealer once every 14 working days from the 16th.
US team arrives today
The Government of Sri Lanka is seeking the advice of the International Monetary Fund and top officials of the world to revive the country’s economy. Accordingly, 2 days ago, a four-member delegation led by the Indian Foreign Secretary met with President Gotabhaya and Prime Minister Ranil Wickremesinghe to give advice. Similarly, a group of top US officials is visiting Sri Lanka today.