Hotels told to accept forex only from non-residents

Local hotels have been told to accept payments only in foreign exchange from non-residents.

The monetary board of the Central Bank of Sri Lanka has issued rules making it mandatory for hotel service providers to accept payments from persons resident outside Sri Lanka only in foreign exchange.

Gazette Extraordinary No. 2263/41 dated 21 January spells out the requirement thus:

Hotel service providers registered with and licensed by the Sri Lanka Tourism Development Authority are required to;

• Accept payments for services rendered to persons resident outside Sri Lanka only in foreign exchange.

• Deposit such foreign currency into a business foreign currency account of the hotel service provider or sell to a licensed bank within three business days.

• Credit payments into a business foreign currency account of the hotel service provider, in the event such person resident outside Sri Lanka makes payments using an electronic fund transfer card (Credit Card, Debit Card, Travel Card, etc.).

The CBSL says hotel service providers may accept payments in Sri Lanka Rupees from persons resident outside Sri Lanka provided they submit original documentary evidence to prove that such Sri Lanka Rupees represent the foreign currency brought into Sri Lanka and converted through a licensed bank or an authorized money changer.