The cabinet of ministers in Sri Lanka has given the green light to present new regulations to parliament, which are designed to permit exporters to invest in domestic dollar-denominated bonds, according to Minister Nalinda Jayatissa.
This initiative aims to boost demand, expand the government’s foreign currency funding sources, and enhance competitive pricing, as communicated by Jayatissa to the media.
This decision builds upon a prior initiative sanctioned on October 13, 2025, which involved the issuance of domestic debt instruments in foreign currency, specifically targeting local commercial banks. The inaugural issuance under this framework was finalized on December 10, 2025, but was limited to incorporated commercial banks due to prevailing regulatory constraints.
The initial offering’s scope was restricted by rules and instructions from the Foreign Exchange Department of the Central Bank of Sri Lanka. To overcome these limitations and stimulate greater demand, the cabinet has approved a proposal to amend the framework governing the repatriation of export proceeds, explained Jayatissa.
The new “Repatriation of Export Proceeds into Sri Lanka Rules No. 01 of 2026” were released through Extraordinary Gazette No. 2473/30 on January 30, 2026. These regulations, enacted under the Central Bank of Sri Lanka Act No. 16 of 2023, revise the 2024 regulations to authorize exporters to allocate their earnings for investment in domestic dollar bonds.
The revised regulations are now set to be presented to parliament for formal approval. (Colombo/February 25/2026)
