How to Open a Bank Account for Foreign Investors in Sri Lanka?

How to Open a Bank Account for Foreign Investors in Sri Lanka?

Foreign Investors are now able to open several accounts with licensed commercial banks to facilitate the investments into Sri Lanka.

Type of Bank Accounts;

  1. Special Foreign Investment Deposit Accounts – SFIDA
  2. Securities Investment Account – SIA
  3. Inward Investment Account – IIA
  4. Rupee Accounts for Non-Resident Sri Lankan Investment – RANSI

Special Foreign Investment Deposit Accounts – SFIDA

Eligible Investors  Citizens of foreign states, Sri Lankan citizens’ resident outside Sri Lanka, corporate bodies incorporated outside Sri Lanka and foreign institutional investors.

An SFIDA can be maintained in any designated foreign currency or in Sri Lanka Rupees. Permitted Credits include proceeds of inward remittances and foreign currency brought into the country by the account holder. Debits to other SFIDAs, transfers to FCBU accounts, outward remittances and disbursements of the account holder in Sri Lanka are allowed. An SFIDA is exempted from Income Tax, Withholding Tax and other levies.

Securities Investment Account – SIA

Eligible Investors  Non-resident Sri Lankans, citizens of foreign states whether resident in Sri Lanka or outside Sri Lanka, corporate bodies incorporated outside Sri Lanka, foreign institutional investors.

An SIA facilitates investments in Government Securities (Treasury Bills and Treasury Bonds), debentures, shares of companies incorporated in Sri Lanka and units of Unit Trusts in Sri Lanka. All benefits earned out of the said investments could be credited into the same SIA and remitted outside Sri Lanka.

Inward Investment Account – IIA

Eligible Investors Companies incorporated outside Sri Lanka and registered as overseas companies under Companies Act, No. 7 of 2007 to carry on business in Sri Lanka though a place of business such as a branch, project, liaison, representative office or similar office.

An account may be initially opened in the name of the parent company incorporated outside Sri Lanka and be re-designated in the name of the company registered in Sri Lanka, upon submission of a certified copy of the Certificate of Registration. Permitted credits are Rupee proceeds of inward remittances received in convertible foreign currencies and local revenue of the overseas company. Debits would include profit, royalty, franchise or other similar payments or surplus funds net of tax.

Rupee Accounts for Non-Resident Sri Lankan Investment – RANSI

Eligible Investors This is a special account to encourage Sri Lankan citizens’ resident outside Sri Lanka to remit their foreign exchange earnings for investment in Sri Lanka.

Permitted credits include inward remittances, income derived from or sale/liquidation proceeds of investments made out of the funds in the account. Debits include investments in shares, government securities, debentures and units in unit trusts and other financial assets and real assets including land and buildings.

Source – Central Bank of Sri Lanka