Uncertainty on installment allowance of Rs. 38/- for $1

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COLOMBO (News 1st); There is uncertainty regarding the incentives for workers’ remittances granted by the government of Sri Lanka following the devaluation of the Sri Lankan rupee.

The Central Bank of Sri Lanka has positioned the Rupee at Rs. 230/- against the US Dollar as of Monday (7), to allow flexibility in the exchange rate.

Since Wednesday (9), the selling price of the dollar in commercial banks is Rs.230/-.

Sri Lanka’s Cabinet of Ministers on Tuesday (8) granted its approval to increase the incentive allowance for migrant workers from Rs. 10/- per USD to Rs. 38/- per USD.

In 2021, the Monetary Board of the Central Bank of Sri Lanka (CBSL) decided to pay a premium of Rs. 8.00 per US dollar for workers’ remittances, in addition to the existing incentive of 2.00 rupees under the “Worker Inward Remittance Incentive Scheme”.

However, it was revealed during the press conference that the Cabinet was unaware of the CBSL’s decisions on exchange rates at the time of making this decision.

Cabinet spokesman Minister Dullas Alahapperuma said the Central Bank has not officially communicated its decision, while the Cabinet has made a decision on workers’ transfer fees.

However, in a letter to the managing directors of all licensed commercial banks, the Governor informed that the Central Bank would end the incentive of Rs. 10 offered on conversion of workers’ remittances and on conversion of banknotes in foreign currency held in hand.

The letter notes that the government’s recent decision to offer a new incentive to expatriate workers who convert remittances would be clarified by the government in due course.

As mentioned by the Cabinet Spokesperson, the Central Bank Governor has yet to call a press conference to explain the matter.

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