Facebook icon
Twitter icon
e-mail icon

Sri Lanka introduces new Foreign Exchange Act

Sri Lanka's new Foreign Exchange Act came into affect today, following Act being gazetted last week by the prime minister Ranil Wickremesinghe. 

The move comes amid repeat warnings from international financial institutions amount the island's debt burden and economic situation.

"Among other matters under the new rules, companies listed in the Colombo Stock Exchange can freely invest up to US$2 million or the equivalent in any Central Bank designated foreign currency in shares, units, debt securities or sovereign bonds overseas while the same investment in the case of unlisted companies is restricted to $500,000, partnerships to $300,000 per annum and individuals to $200,000. A company or partnership is entitled to utilise up to $300,000 (per annum) in opening overseas offices," the Sunday Times reported on Monday. 

Individuals with dual citizenship or a permanent resident visa in other countries will be able to take a loan from the island's commercial banks in order to buy, build or renovate a residential property.