The Sundaytimes Sri Lanka

Sri Lanka’s Central Bank further relaxes forex rules


Sri Lanka’s Central Bank (CB), under regulations to further relax foreign exchange transactions, on Wednesday said it was permitting fund transfers between NRFC accounts and between RFC accounts with immediate effect.The CB said transfers from NRFC (Non-Resident Foreign Currency) to RFC (Resident Foreign Currency) accounts are also allowed in the same bank or different banks.

However, funds or proceeds realised from the sale of properties in Sri Lanka should be credited to NRFC/RFC accounts, only in keeping with the existing regulations, the statement said. Opening of NRFC/RFC accounts by minors will be permitted through the credit of inward remittances received from their guardians/parents who are non-residents, or through the transfer of funds from existing NRFC accounts of such guardians/parents.

The CB said any outward remittance from NRFC accounts would also be permitted irrespective of the underlying transaction, if the account holder is resident outside Sri Lanka. In another move, it said a new, single account titled Foreign Exchange Earners’ Account (FEEA) will unify all existing foreign currency accounts and replace the following:

a) Exporters’ Foreign Currency (EFC) Account;
b) Indirect Exporters’ Foreign Currency Account (IEFCA);
c) Foreign Currency Account for Suppliers of Inputs (FCASI);
d) Foreign Currency Account for Professional Services Providers (FCAPS);
e) Non Resident Foreign Currency Accounts for Foreign Employment Agencies;
f) Foreign Currency Account for Gem and Jewellery dealers, and temporary/ special foreign currency accounts authorised by the Controller of Exchange.

“Accordingly, exporters, indirect exporters, suppliers of inputs, professional services providers, entrepot traders, gem and jewellery dealers, insurers, insurance brokers, travel agents, hoteliers, bunker suppliers and other residents who undertake foreign projects would be permitted to execute their current international transactions through this new FEEA,” it said.

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