Sri Lanka residents who earn abroad allowed to maintain foreign bank accounts

COLOMBO: Sri Lanka residents who have worked abroad and earned money, individuals or firms which provide services to foreigners have been allowed to open accounts in foreign banks under regulations issued under the Foreign Exchange Act, Economy Next reported.

Money earned before Sri Lanka’s 2017 Foreign Exchange Act was enacted or before could be held in such accounts, Economy Next reported.

In regulations that went into effect on March 22, persons who go abroad temporarily for business, medical or education purposes are also allowed to open foreign account without prior permission but any remaining proceeds have to be remitted back after the task is completed.

In addition a person who had invested abroad, requires a bank account to be opened to get a visa, to make a permitted investment abroad are also allowed to open accounts, Economy Next reported.

Exporters are also allowed to open foreign accounts but proceeds have to be remitted to Sri Lanka one month after the purpose for which it was opened had been completed.

Students who fail to get visa also have to remit the money back.

The regulation are effective from March 22.

Separately, Sri Lankans have been allowed to retain up to $15,000 in their possession after their return from abroad in a relaxation of earlier more draconian legal tender laws.

Sri Lanka is expected to allow foreign money to be brought back to Sri Lanka on the payment of a 1 percent fee.