{"id":105492,"date":"2022-12-11T12:00:45","date_gmt":"2022-12-11T12:00:45","guid":{"rendered":"https:\/\/websitedesigns.com.au\/elankanew\/?p=105492"},"modified":"2022-12-11T12:01:16","modified_gmt":"2022-12-11T12:01:16","slug":"cbsl-governor-sets-record-straight-on-export-remittances-and-conversions","status":"publish","type":"post","link":"https:\/\/websitedesigns.com.au\/elankanew\/cbsl-governor-sets-record-straight-on-export-remittances-and-conversions\/","title":{"rendered":"CBSL Governor sets record straight on export remittances and conversions"},"content":{"rendered":"<header class=\"inner-h\">\n<h2 class=\"innerheader\" style=\"text-align: center;\"><span style=\"color: #000000;\">CBSL Governor sets record straight on export remittances and conversions<\/span><\/h2>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-105493\" src=\"https:\/\/websitedesigns.com.au\/elankanew\/wp-content\/uploads\/2022\/12\/Dr.-Nandalal-Weerasinghe.jpg\" alt=\"Dr. Nandalal Weerasinghe\" width=\"320\" height=\"522\" \/><\/p>\n<\/header>\n<p style=\"text-align: center;\"><strong><span style=\"color: #000000;\">Dr. Nandalal Weerasinghe<\/span><\/strong><\/p>\n<p><span style=\"color: #800080;\"><strong><span style=\"font-size: 16px;\">Source:<\/span><\/strong><\/span><span style=\"color: #000000;\"><a style=\"color: #000000; font-size: 16px;\" href=\"https:\/\/www.dailymirror.lk\/breaking_news\/CBSL-Governor-sets-record-straight-on-export-remittances-and-conversions\/108-250159\" target=\"_blank\" rel=\"noopener noreferrer\">Dailymirror<\/a><\/span><\/p>\n<ul>\n<li style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\"><strong>Says wants to make it clear that based on Sept. and Oct. data, exporters are not keeping money abroad<\/strong><\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\"><strong>Points out 25% export proceeds not converted due to dollars being utilised for local purchases<\/strong><\/span><\/li>\n<li style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\"><strong>JAAF reiterates that its members strictly abide by CBSL laws on repatriating export income\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0<\/strong>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Apparel industry points out, given current economic milieu, companies use a considerable portion of export proceeds to purchase raw materials, fuel and other items essential<\/span><br \/>\n<span style=\"font-size: 16px; color: #000000;\">The issues revolving around the exporters repatriating income were clarified this week by the Central Bank of Sri Lanka (CBSL) chief, who set the record straight on export remittances and conversions.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">CBSL Governor Dr. Nandalal Weerasinghe stated in an interview recently that, of the exports in September and October, the exporters have repatriated or brought 100 percent of export earnings into the banking system.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">\u201cI want to make it very clear that based on the data for those two months, the exporters are not keeping money abroad,\u201d said Dr. Weerasinghe.<\/span><\/p>\n<p style=\"text-align: justify;\"><!--more--><br \/>\n<span style=\"font-size: 16px; color: #000000;\">Responding to the claims made by the authorities, where it was pointed out that the exporters are not bringing in their earnings to the country, which is impacting the status of the economy, the Joint Apparel Association Forum (JAAF) asserted that its membership strictly abides by the Central Bank laws on repatriating the export income, reiterating that the apparel sector brings back the entirety of its export proceeds to Sri Lanka.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">In this regard, Dr. Weerasinghe went on to say that in the case of the apparel sector, the industry refers to a local value addition of 50 percent.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Accordingly, the CBSL investigations have confirmed that 25 percent of export proceedings in average have been directly converted to rupees by the exporters. The CBSL was looking into the remaining 25 percent of export proceedings.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Dr. Weerasinghe noted however that this may be due to the exporters utilising these dollars for approved local purchases. These would include the purchase of both diesel from CPC and LIOC and domestically produced raw materials which are required for the industry.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">In light of the statement made by Dr. Weerasinghe, the JAAF reiterated that under the existing regulations set out by the CBSL, the exporters are permitted to make outward payments for purchases of raw materials and the remaining proceeds are converted automatically by the respective commercial banks on the seventh day of the following month.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">In addition to the payments made to overseas suppliers, the growth of the local supply chain also means that the apparel companies could pay up to 25 percent of their inward foreign currency remittances to indirect exporters in Sri Lanka.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">\u201cAs mentioned by the governor, these additional dollar payments may not be accounted for properly, which has led to misconceptions surrounding the industry\u2019s foreign exchange conversions,\u201d the JAAF said in a statement.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">\u201cGiven the current economic milieu in the country, companies use a considerable portion of export proceeds to purchase raw materials, fuel and other items essential for seamless operations in the event of unforeseen crises.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">\u201cThis is aligned with a preparedness formula, which nearly all exporters have implemented, having learned lessons from crises experienced in the last three years,\u201d elaborated the JAAF.<\/span><br \/>\n<span style=\"font-size: 16px; color: #000000;\">Further, it stressed that the industry has been a mainstay in contributing towards vital essentials for the country, including fuel, medicine and food during the worst of the financial crisis.<\/span><br \/>\n<span style=\"font-size: 16px; color: #000000;\">The JAAF members are acutely conscious of the crucial role they play in keeping the economic wheels turning. Dr. Weerasinghe also placed on record his appreciation to the apparel sector for its\u00a0<\/span><br \/>\n<span style=\"font-size: 16px; color: #000000;\">continued support.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">\u201cWe are confident that the companies in our membership have been abiding by the law, ensuring that the export proceeds are repatriated for the economic benefit of the country.\u00a0<\/span><br \/>\n<span style=\"font-size: 16px; color: #000000;\">The JAAF member companies have and will continue to comply with the existing regulations and will strive to complement all efforts taken by the CBSL and government in providing the much-needed assistance to all stakeholders of the economy, to redirect Sri Lanka\u2019s economy to a path of recovery and growth,\u201d the JAAF said.<\/span><\/p>\n<header class=\"inner-content\"><span style=\"font-size: 16px; color: #000000;\">Dr. Weerasinghe also spoke of reconciling the exports of the top 100 exporting companies to establish both the direct conversion and amounts paid in foreign currency to local suppliers. The JAAF is committed to working with the CBSL to ensure that this reconciliation is done at the earliest.<\/span><span style=\"font-size: 16px; color: #000000;\">The JAAF member companies acknowledge Dr. Weerasinghe\u2019s remarks on the need for strict foreign exchange repatriation and conversion requirements over the short term to tide over the current economic hardships.<\/span><\/p>\n<p><span style=\"font-size: 16px; color: #000000;\">The JAAF similarly commends Dr. Weerasinghe\u2019s remarks on the need to periodically relax the repatriation and conversion requirements \u201cas it does not work\u201d and move towards creating a suite of positive incentives that will encourage the voluntary repatriation and conversion in line with global standards and practices.<\/span><\/p>\n<\/header>\n<div class=\"col-xl-12 d-none d-lg-block\" style=\"text-align: justify;\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>CBSL Governor sets record straight on export remittances and conversions Dr. Nandalal Weerasinghe Source:Dailymirror Says wants to make it clear that based on Sept. and Oct. data, exporters are not keeping money abroad Points out 25% export proceeds not converted due to dollars being utilised for local purchases JAAF reiterates that its members strictly abide [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":105493,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"aside","meta":{"footnotes":""},"categories":[20],"tags":[45425],"class_list":{"0":"post-105492","1":"post","2":"type-post","3":"status-publish","4":"format-aside","5":"has-post-thumbnail","7":"category-articles","8":"tag-dr-nandalal-weerasinghe","9":"post_format-post-format-aside"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>CBSL Governor sets record straight on export remittances and conversions<\/title>\n<meta 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