Home
Register
ECONOMYNEXT - Sri Lanka has drafted a new law to regulate foreign exchange inflows and outflows, which will revamp existing law, Mass Media Minister Gayantha Karunathilake said.
The new law will end criminal penalties, and instead impose civil penalties for violations.
The Finance Minister will also have powers to intervene to 'protect' the economy.
Sri Lanka enacted a draconian exchange control law in 1952 after a money printing central bank with a soft dollar peg was set up, abolishing a currency board (hard peg) that had kept the currency fixed from 1885.
The Central Bank frequently attempts to keep interest rates down by printing money, generating 'foreign exchange shortages', and then imposes control on forex flows to prevent the currency collapsing.
When large volumes of money are printed, like in 2015, exporters try to hold back dollars, and others who do not want their savings destroyed also try to convert rupees to dollars.
On January 02, a new threat emerged to Sri Lanka's economy in the form of massive amounts of money printed to repay maturing bonds, analysts warn. (Colombo/Mar23/2017)
The new law will end criminal penalties, and instead impose civil penalties for violations.
The Finance Minister will also have powers to intervene to 'protect' the economy.
Sri Lanka enacted a draconian exchange control law in 1952 after a money printing central bank with a soft dollar peg was set up, abolishing a currency board (hard peg) that had kept the currency fixed from 1885.
The Central Bank frequently attempts to keep interest rates down by printing money, generating 'foreign exchange shortages', and then imposes control on forex flows to prevent the currency collapsing.
When large volumes of money are printed, like in 2015, exporters try to hold back dollars, and others who do not want their savings destroyed also try to convert rupees to dollars.
On January 02, a new threat emerged to Sri Lanka's economy in the form of massive amounts of money printed to repay maturing bonds, analysts warn. (Colombo/Mar23/2017)
» CCS.N0000 ( Ceylon Cold Stores)
» Sri Lanka plans to allow tourists from August, no mandatory quarantine
» When Will It Be Safe To Invest In The Stock Market Again?
» Dividend Announcements
» MAINTENANCE NOTICE / නඩත්තු දැනුම්දීම
» ඩොලර් මිලියනයක මුදල් සම්මානයක් සහ “ෆීල්ඩ්ස් පදක්කම” පිළිගැනීම ප්රතික්ෂේප කළ ගණිතඥයා
» SEYB.N0000 (Seylan Bank PLC)
» Here's what blind prophet Baba Vanga predicted for 2016 and beyond: It's not good
» The Korean Way !
» In the Meantime Within Our Shores!
» What is Known as Dementia?
» SRI LANKA TELECOM PLC (SLTL.N0000)
» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
» Equinox ( වසන්ත විෂුවය ) !
» COMB.N0000 (Commercial Bank of Ceylon PLC)
» REXP.N0000 (Richard Pieris Exports PLC)
» RICH.N0000 (Richard Pieris and Company PLC)
» Do You Have Computer Vision Syndrome?
» LAXAPANA BATTERIES PLC (LITE.N0000)
» What a Bank Run ?
» 104 Technical trading experiments by HUNTER
» GLAS.N0000 (Piramal Glass Ceylon PLC)
» Cboe Volatility Index
» AHPL.N0000
» TJL.N0000 (Tee Jey Lanka PLC.)
» CTBL.N0000 ( CEYLON TEA BROKERS PLC)
» COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))
» Bitcoin and Cryptocurrency
» CSD.N0000 (Seylan Developments PLC)
» PLC.N0000 (People's Leasing and Finance PLC)
» Bakery Products ?
» NTB.N0000 (Nations Trust Bank PLC)
» Going South
» When Seagulls Follow the Trawler
» Re-activating
» අපි තමයි හොඳටම කරේ !
» මේ අර් බුධය කිසිසේත්ම මා විසින් නිර්මාණය කල එකක් නොවේ
» SAMP.N0000 (Sampath Bank PLC)
» APLA.N0000 (ACL Plastics PLC)
» AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.
» Banks, Finance & Insurance Sector Chart
» VPEL.N0000 (Vallibel Power Erathna PLC)
» DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.
» WATA - Watawala
» KFP.N0000(Keels Food Products PLC)
» Capital Trust Broker in difficulty?
» IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?
» What Industry Would You Choose to Focus?
» Should I Stick Around, or Should I Follow Others' Lead?