In an effort to increase the flow of foreign currency into the country, the Nation
In an effort to increase the flow of foreign currency into the country, the National Chamber of Exporters (NCE) suggested the government to bring in supportive export regulations.
The first is to offer all foreign remittances an incentive. In a statement to the media, the NCE said the government should consider an incentive rate of 30 percent more than the parity rate, matching the rates by the grey market.
The additional value must be invested in a rupee time deposit of over 12 months, earning a higher rate of interest.
Further, the additional incentive proceeds to be allowed through a time deposit and to be utilised for capital investments only,
thereby contributing to the national GDP, the NCE said. The earlier regulation on remitting export proceeds within 180 days has been dormant and the statistics published by the Central Bank and Customs Department do not portray the actual value, due to non-availability of a monitoring and tracking system, the NCE said.
It asserted the need for regulations to be enforced to ensure foreign remittance is received through the banking system, so that the country’s balance of payment is not further affected.
The NCE further added that importing any items under an open account should be further evaluated and streamlined. “All commercial importers must be duly registered with the Imports Department and must open tax files obtaining TIN number. This must be highlighted in all documentation related to imports entered in all import documents enabling. This would enable Sri Lanka Customs and IRD to monitor establishments,” the chamber suggested.
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