This is not correct, The PayPal account your sending money should be able to receive money, for example if you try to send money to a Sri Lankan PayPal account from your PayPal account you want be able to do it.
This can help you. paypal.com/cgi-bin/webscr?cmd=_display-country-functionality-outside&dispatch=5885d80a13c0db1f8e263663d3faee8d4b3d02051cb40a5393d96fec50118c72