The central bank is working with banks, mobile operators, and government agencies to launch a new mobile app for inward remittances.
Export proceeds must be repatriated and converted to local currency. The loan moratorium will be unwound gradually. Liquidity support will be provided to banks.
Investors must have at least BDT 5 million in stock investments to participate in the secondary market for SMEs listed on the new platform.
Sri Lankan banks are charging heavy premiums to execute FX transactions, claiming to not have US dollars available.
The new platform will enhance the repo trading mechanism and facilitate a buildup of liquidity in Sri Lanka's corporate debt market.
Sri Lankan companies will be allowed to raise debt and equity in foreign currency on the Colombo Stock Exchange. A new benchmark index is also being launched.
The changes at the CBSL come as Sri Lanka faces depleting foreign exchange reserves and a weakening currency.
SEC chairman Viraj Dayaratna described the new law as “futuristic”, saying it will help to increase market liquidity and attract foreign investment.
Coupled with the weaker debt repayment capacity of borrowers, Moody’s expects the move to cause a systemwide increase in the NPL ratio.
The Sri Lankan central bank has lowered the risk weights applicable to credit risk for foreign claims on the central government and residential housing loans.