The Foreign Exchange Act, No. 12 of 2017, (the Act) serves as the principal legislation governing foreign exchange transactions in Sri Lanka. Non-compliance with the Act can result in significant penalties. Designed to promote a business-friendly environment, the Act aims to attract foreign investment while ensuring transparency and efficiency in currency transactions. It also aligns Sri Lanka’s foreign exchange practices with international standards, fostering economic growth and global integration.

Sri Lanka’s IT-BPO (business process outsourcing) sector has emerged as a significant contributor to the economy of the country transitioning from being dominated by manufacturing to one that’s focused on services. The island nation is rapidly emerging as a premier outsourcing destination for multinational companies due to several key factors. 

In a landmark decision, the Supreme Court of Sri Lanka recently ordered the Ceylon Electricity Board (CEB) to pay compensation of LKR 1 Million to the Vavuniya Solar Power (Private) Limited. This was following the hearing of a Fundamental Rights petition filed by the latter regarding the failure of CEB over several years to issue a “letter of intent”. The said letter confirms the intent of the state-owned electric utility to procure power from the renewable energy plant to be set up by the petitioner, and without which, the petitioner would not be able to obtain the necessary approvals, permits, and licences from the relevant regulatory authorities.