The Central Bank of Sri Lanka (CBSL) has established a new branch named “Foreign Remittances Facilitation Department” (FRFD) with effect from November 03 to facilitate and streamline workers’ remittances inflows to the country.
It was formed under the provisions of the Monetary Law Act No. 58 of 1949.
In a press release, the Central Bank pointed out that the workers’ remittances have been a key pillar of Sri Lanka’s foreign currency earnings that has nearly 100 per cent of domestic value addition, providing a substantial cushion for external sector resilience of the country.
Workers’ remittances have covered around 80 per cent of the annual trade deficit over the past two decades, and strengthening remittances inflows to the country brings several socio-economic benefits including the smooth supply of forex inflows to the formal banking system and the reduction of income and regional disparities.
