Friday, 17 July 2020 07:35

Foreign Currency Reserve Position of Sri Lanka to be improved soon

With a view to preserve the foreign currency reserve position of the country and considering the possible negative impact to the Sri Lankan economy due to the outbreak of Covid-19 pandemic, the Central Bank

The. Minister of Finance with the recommendation of the Monetary Board of the Central Bank with the approval of the Cabinet of Ministers has issued an order introducing several measures on outward remittances on Capital Transactions for a period of six (06) months effective from 02 July 2020.

The Monetary Board will suspend the general permission granted to make outward remittances for investments overseas through the Outward Investment Accounts by persons resident in Sri Lanka excluding investments to be financed out of foreign currency loans obtained by the investor from a person resident outside Sri Lanka under the provisions of the Foreign Exchange Act.

An additional investment is to be made to fulfill the regulatory requirement in the investee’s country applicable on the investment already made in a company or a branch office in that country

An additional investment/infusion of funds will be made by eligible resident companies in already established subsidiaries or branch offices in overseas up to a maximum of US$ 20,000, for the purpose of working capital requirements of the investee

The remittance is for the purpose of maintenance of liaison, marketing, agency, project, representative or any other similar offices already established in overseas.

(LIN)

 

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