Last update:Thu, 10 Jun 2021

Incentive Scheme for Sri Lankan migrant workers abroad

CB sri lanka logoAs you may be aware, the budget 2021 has proposed an incentive scheme above the normal exchange rate for foreign exchange remittances sent by foreign workers through all licensed banks registered under the Central Bank of Sri Lanka. It has been implemented with effect from 28.12.2020.

Therefore, the budget 2021 has proposed to pay Rs. 2 per dollar above the normal exchange rate for the foreign exchange remittances sent by foreign workers to banks in Sri Lanka. It is expected that the benefit of such intencive is passed to the workers and / or their beneficiaries and not to the intermediaries, which are associated in the process of channeling such worker remittances into the country.

Accordingly, all Licensed Banks (LBs) are hereby instructed to adhere to the following Operation Instructions on operating the mechanism. Qualified for the intencive is the foreign currency income earned through employment by a Sri Lankan national, who is working / has worked abroad. He / she will receive an additional LKR 2.00 per IS-Dolla (USD) remitted and converted to LKR. All LBs are required to maintain comprehensive due diligence procedures and internal controls to identify qualifying remittances for the incentive.

Direct Fund Transfers to Personal Foreign Currency Accounts (PFCAs) are to be paid the incentive of  LKR 2.0 per USD, when the PFCA is debited for the foreign currency amount and the same is converted to LKR. If the converted LKR amount is used to transfer to an institution for the purposes such as bills, loans etc., the LB should debit the PFCA at a lesser foreign currency amount by adjusting the incentive of Rs. 2.00 per USD.

When converting foreign currency notes to LKR, the incentive shall be paid, when the foreign currency notes are converted to LKR. When the customer and / or a beneficiary is paid in LKR, the incentive should be paid and recorded by the LB, where the customer and / or a beneficiary receives LKR either over the counter or credit to an account.

For further information, you may contact IOD of the CBSL on 0112398711, 0112477595 or 0761754680.