Central Bank Governor Ajith Nivard Cabraal has refuted reports claiming that Sri Lankan banks have been ordered by the Central Bank of Sri Lanka (CBSL) to forcibly convert balances in their customers’ Forex accounts.
Cabraal said rumors spread by some mischievous elements that Sri Lankan banks have been ordered by the CBSL to forcibly convert balances in their customers’ Forex accounts are totally false.
Despite the CBSL Governor saying so, several social media users have revealed otherwise.
A number of social media users have been pointing out in the past few days that they have been contacted by their banking partners to convert balances in their Forex accounts.
In December 2021, the Bar Association of Sri Lanka (BASL) had filed a Writ petition at the Court of Appeal over the issue of conversion of foreign currency earnings into Sri Lankan Rupees.
The BASL said draconian measures of forcefully converting or threatening to convert the foreign currency of Attorneys-at-Law who are members of the BASL amounts to a form of expropriation of private property which is both unconstitutional and wholly illegal and which cannot be sanctioned in law.
In its Writ petition, the BASL called for the purported Gazette Extraordinary 2251/42 of 28th October 2021 marked “P3” quashed, as being ultra vires the powers of the 1st Respondent and as being unlawful, irrational, unjustifiable, arbitrary, capricious, in breach of all principles of justice, and due process, and therefore vitiated in law and liable to be quashed. (NewsWire)
Rumors spread by some mischievous elements that Sri Lankan #banks have been ordered by @CBSL to forcibly convert balances in their customers' #Forex accounts are totally false. #SriLanka #Fakenews
— Ajith Nivard Cabraal (@an_cabraal) January 5, 2022
I asked what would happen if I don’t give them the consent to convert – they said they cannot convert without my consent but the account might be subjected for further restrictions.
Form I was asked to sign 👇🏽#lka #SriLanka #ForexCrisis pic.twitter.com/94GUsDfFlL
— Dasuni Athauda (@AthaudaDasuni) January 4, 2022
So @ComBank_LK is lying to me? https://t.co/pm2wzcIFMg pic.twitter.com/VtHD1ZSByy
— Super Deluxe (@sachp) January 5, 2022
Yes I have a feeling this is the distinction being made but in a very vague way. Because I just confirmed with my bank manager and there’s a @CBSL circular instructing them to do this for foreign currency remittances received from October 2021 onwards. I’ve asked for a copy.
— Super Deluxe (@sachp) January 5, 2022
Sampath Bank forcibly converted total Forex remittance of my account last month without my consent citing your instructions. These were fees for my foreign consultancies @an_cabraal @CBSL. කාටද මේවා කියන්නෙ? ඇහුවාම සෙන්ට්රල් බෑන්ක් එකේ නියෝගලු. @SampathBankPLC
— Ranga Kalansooriya (@rkalansooriya) January 5, 2022