Sri Lanka limits foreign currency holdings

Sri Lanka will lower the maximum amount of foreign currency that individuals can possess to $10,000 from $15,000 and penalize anyone who holds it for more than three months, the central bank announced Thursday.

Central Bank leader Nandalal Weerasinghe said people must place their excess foreign currency in a bank or convert it into local currency within two weeks. After that time, Central Bank officials and police will conduct raids and anyone violating the new rules will be fined, he said.

The regulations come amid a severe shortage of foreign currency that has sharply limited imports of essential items such as fuel, medicine and food.