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CBSL urged to extend mandatory conversion period of advance payments related to exports
By Sanath Nanayakkare
Small and medium exporters want the Central Bank (CBSL) to give them greater leeway on converting advance payments, they receive from their foreign clients, for confirmed export orders, into rupees.
“Under the existing export repatriation guidelines, we are required to convert such advance payments, into Sri Lanka rupees, within a time frame that does not take into consideration the processing time of export orders. When we receive USD advance payments for export orders, the banks, we deal with, say that they can’t hold USD funds, received as advance payments for export orders, beyond one month, without converting it into Sri Lanka rupees. Banks say they can’t do so because of CBSL’s exports repatriation guidelines. But this rule has hardly taken into account the processing time of our export orders and the credit periods available to us,” SME exporters told The Island.
“We generally get advance payments from our foreign buyers in terms of confirmed export orders, such as value-added products, which we ship to them in 30-45 days. The USD advance payments are credited to our companies’ accounts at the relevant banks. But the rules require us to convert the foreign currency, into Sri Lanka rupees, within a month, hence we cannot benefit from the transactional facilities offered to us by our freight forwarders and foreign intermediate goods suppliers,” they pointed out.
“You see, our freight cost is billed in USD after, 45 days from the date of the bill of lading. Our imported intermediate inputs are billed in USD, within a 30-day credit period. But the banks, we deal with, convert the USD advance payments, into Sri Lanka rupees, before we can settle these bills, under the rules stipulated by the CBSL. This means that the advance payments are converted into Sri Lanka rupees, before the export orders are shipped, and total export proceeds are remitted to Sri Lanka,” they said.
According to them, the Director, Department of Foreign Exchange, at CBSL, has informed them that advance payments, received in respect of exports, are also considered export proceeds and the requirements stipulated, in existing rules, shall be applicable for such export proceeds.
‘In this context, we seek the assistance of the CBSL to allow the above-mentioned requisite payments to be paid on due dates, after the advance is received. We request the CBSL to give a directive to the banks to hold these funds, without converting them, because it is vital for us to benefit from the available transactional facilities to keep our SME export businesses viable in the long term. The Central Bank and the commercial banks are on the same page as per the rules, but SME exporters are left at a disadvantage due to this. So we urge the CBSL to extend the time frame on the mandatory conversion of advance payments received in USD for SME export orders,” they said.
The U.S. Embassy in Colombo welcomed the U.S. Sports Envoys to Sri Lanka, former National Basketball Association (NBA) and Women’s National Basketball Association (WNBA) players Stephen Howard and Astou Ndiaye, from June 8 through 14.
The Public Diplomacy section of the U.S. Embassy said that it would launch a weeklong basketball program intended to harness the unifying power of sports, made possible through collaboration with Foundation of Goodness and IImpact Hoop Lab.
While in Sri Lanka, Howard and Ndiaye, both retired professional basketball players, will conduct a weeklong program, Hoops for Hope: Bridging Borders through Basketball. The Sports Envoys will lead basketball clinics and exhibition matches and engage in leadership sessions in Colombo and Southern Province for youth aged 14-18 from Northern, Uva, Eastern and Western Provinces, offering skills and leadership training both on and off the court. The U.S. Envoys will also share their expertise with the Sri Lanka Basketball Federation, national coaches, and players, furthering the development of basketball in the country. Beyond the clinics, they will collaborate with Sri Lankan schoolchildren to take part in a community service project in the Colombo area.
“We are so proud to welcome Stephen and Astou as our Sports Envoys to Sri Lanka, to build on the strong people-to-people connections between the United States and Sri Lanka,” said U.S. Ambassador Julie Chung. “The lessons that will be shared by our Sports Envoys – communication, teamwork, resilience, inclusion, and conflict resolution – are essential for leadership development, community building, equality, and peace. The U.S. Sports Envoy program is a testament to our belief that sports can be a powerful tool in promoting peace and unity.”
SJB Colombo District MP Mujibur Rahuman in parliament demanded to know from the government the reasons for CEB suspending the leave of all its employees until further notice from Thursday.
MP Rahuman said that the CEB has got an acting General Manager anew and the latter yesterday morning issued a circular suspending leave of all CEB employees with immediate effect until further notice.
“We demand that Minister Kanchana Wijesekera should explain this to the House. This circular was issued while this debate on the new Electricity Amendment Bill was pending. There are many who oppose this Bill. The Minister must tell parliament the reason for the urge to cancel the leave of CEB employees,” the MP said.However, Speaker Mahinda Yapa Abeywardena prevented Minister Wijesekera responding to the query and said that the matter raised by MP Rahuman was not relevant.
The Chartered Institute of Personnel Management (CIPM) successfully concluded the 8th Annual CIPM Symposium, which took place on 31st May 2024. Themed “Nurturing the Human Element—Redefining HRM in a Rapidly Changing World,” the symposium underscored the pivotal role of human resource management (HRM) in today’s dynamic global landscape. Since its inception in 1959, CIPM has been dedicated to advancing the HR profession through education, professional development, and advocacy, solidifying its position as Sri Lanka’s leading professional body for HRM.
Ken Vijayakumar, the President of the CIPM, graced the occasion as the chief guest. The symposium commenced with the welcome address by the Chairperson, Prof. Arosha Adikaram, followed by the Web Launch of the Symposium Proceedings and Abstract Book by the CIPM President. The event featured distinguished addresses, including a speech by Chief Guest Ken Vijayakumar, President of CIPM, and an address by Guest of Honor Shakthi Ranatunga, Chief Operating Officer of MAS Holdings Pvt. Ltd., Sri Lanka.
The symposium also featured an inspiring keynote address by Prof. Mario Fernando, Professor of Management and Director of the Centre for Cross Cultural Management (CCCM) at the University of Wollongong, Australia.
Vote of Thanks of the inauguration session was delivered by Dr. Dillanjani Weeratunga, Symposium Co-chair.
The symposium served as a comprehensive platform for researchers to present their findings across a wide range of critical topics in HRM. These included Cultural Diversity and Inclusion, Talent Development and Retention, Ethical Leadership and Corporate Social Responsibility, Adapting to Technological Advancements, Mental Health and Well-being at Work, Global Workforce Challenges, Employee Empowerment, and Reskilling and Upskilling.
The plenary session was led by Prof. Wasantha Rajapakse. Certificates were awarded to the best paper presenters during the valedictory session, followed by a vote of thanks delivered by Kamani Perera, Manager of Research and Development.
The annual symposium of CIPM was a truly inclusive event, attracting a diverse audience that spanned undergraduates, graduates, working professionals, research scholars and lecturers. This widespread interest highlights the symposium’s significance in the field of HRM, offering a unique opportunity for everyone to network and learn from scholarly brains.The CIPM International Research Symposium was sponsored by Hambantota International Port, Sri Lanka Institute of Information Technology (SLIIT), E B Creasy & Co. PLC, and Print Xcel Company.
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
