Exchange rate mismatch: Customs applies higher dollar rate

The Free Lawyers Organisation says that, regardless of the nominal exchange rates announced by the Central Bank and commercial banks, Sri Lanka Customs has been conducting all transactions at an exchange rate of Rs. 353.17 per US dollar from May 25 to 29, according to a gazette notification.

In a statement, the organisation noted that while the Central Bank of Sri Lanka is attempting to keep the value of the dollar artificially lower through interbank exchange mechanisms, Customs—one of the country’s highest revenue-generating institutions—is applying a higher rate than the official nominal exchange rate.

They further stated that this situation will have a direct impact on goods prices, and therefore the Central Bank should immediately revise the exchange rate used by Customs to align with the official nominal rate.