CBSL simplifies restrictions issued less than the Overseas Trade Act – Adaderana Biz English

Revised Rules issued under the Overseas Exchange Act, No.12 of 2017

Regulations issued beneath the International Trade Act, No. 12 of 2017 (FEA) have been revised for more simplification and clarity enhancement, with the targets of accomplishing larger effectiveness in the conduct of cross-border foreign trade transactions alongside even further facilitating economic actions of the stakeholders through increased ease of doing enterprise.

These revised overseas exchange coverage framework as highlighted higher than, has been executed with effect from 22 March 2021. Inter-alia, crucial highlights of policy measures so released, are as follows.

1. Excluding the necessary need of opening Inward Expense Accounts (IIAs) by the international buyers/loan companies when granting financial loans to individuals resident in Sri Lanka together with to Government of Sri Lanka and Point out-Owned Enterprises.
2. Introducing a new account titled ‘External Industrial Borrowing Account’, to facilitate overseas trade borrowings from overseas by people resident in Sri Lanka.
3. Common permission for Firms registered in Sri Lanka (Branch office, Liaison business, Undertaking place of work and many others.) to borrow from their guardian providers outside Sri Lanka.
4. Basic authorization for non-resident investors to make investments in shares or financial debt securities of organizations not integrated in Sri Lanka and detailed in Colombo Stock Exchange by routing cash by accounts preserved in the Offshore Banking Units of Accredited Commercial Banking companies in Sri Lanka instead of routing funds via IIA.
5. Introducing a supplementary account titled ‘Emigrant’s Remittable Earnings Account’ for the purpose of repatriating emigrant’s present earnings.
6. Permitting emigrants to commit in Sri Lanka out of the funds held in Non-Resident Rupee Accounts and Funds Transaction Rupee Accounts.
7. Typical authorization for individuals resident in Sri Lanka who has been a resident outside the house Sri Lanka and acquired/ acquired international trade outside Sri Lanka and providers integrated in Sri Lanka which are suitable to borrow from abroad to open, maintain and function an account with a controlled economic establishment outside Sri Lanka.
8. Common authorization for Sri Lankans used exterior Sri Lanka (other than emigrants) to open and preserve Sri Lanka Rupee accounts for crediting cash produced in Sri Lanka Rupees and for local disbursements.
9. Introducing 3 new qualified resident investor types as to, listed entities or non- listed entities, which have been founded beneath any other prepared legal guidelines in Sri Lanka and Sole Proprietorships.
10. Allowing deposit of unutilized overseas currency obtained as journey allowance into new or current Private Overseas Forex Accounts.

For additional information, you should be referred to the Gazette Incredible Nos. 2213/34 – 39 dated 03 February 2021 and go to www.dfe.lk or get hold of the Section of International Exchange on 011-2477255/433/207/375.