This rule aims to implement recommendations for ensuring financial stability within Sri Lanka by temporarily suspending and limiting certain capital transaction remittances by residents.

In response to the declining foreign exchange reserves in the country, a rule under section 22 of the Foreign Exchange Act was first empowered on 2 April 2020. This rule has been renewed every six months since its inception. The current rule is valid till 19 June.

The Central Bank of Sri Lanka has now issued a new rule, effective from 20 June, for another six-month period