A new bank account termed Special Deposit Account (SDA) has now been introduced for all Sri Lankans living in and outside the country to remit their foreign currency earnings, savings and investments to any bank of their choice in Sri Lanka. It is in the form of Term Deposits either in any designated foreign currency or in Sri Lanka Rupees.

Any Sri Lankan individual resident in or outside Sri Lanka as well as dual citizens, citizens of other States with Sri Lankan origin, non-nationals residents  in or outside Sri Lanka, Funds, corporate bodies, associations incorporated/registered outside Sri Lanka and any other well-wishers can  open Special Deposit Accounts at any Sri Lankan bank of their preference.

All the regulations related to the new account have been incorporated in the Extraordinary Gazette notification issued by the Ministry of Finance, Economic and Policy Development on April 8^th. The notification announces that all interested Sri Lankans and well-wishers accordingly can instruct their foreign banks to transfer their funds to Sri Lanka.

There is no prescribed minimum amount to be deposited. The minimum period of maturity is six (06) months. Higher interest rates than the normal rates offered to foreign currency deposits will be offered at maturity. Accordingly, 1 percent and 2 percent points per annum for SDA with a tenure of 6 months and 12 months respectively will be paid.  Funds are freely convertible and repatriable outside Sri Lanka on maturity.

All these accounts are free from taxes and foreign exchange regulations. All such deposits shall be protected under banking secrecy provision and further benefits with the relevant supporting legislations will be introduced with the 2020 Budget.

Acceptable currencies are United States Dollars (USD), Euro, Sterling Pounds, Australian Dollars, Singapore Dollars, Swedish Kroner, Swiss Franc, Canadian Dollars, Hong Kong Dollars, Japanese Yen, Danish Kroner, Norwegian Kroner, Chinese Renminbi and New Zealand Dollars.

Further information could be obtained from the websites of the Presidential Secretariat, the Ministry of Finance, the Central Bank of Sri Lanka or Sri Lankan overseas missions. All Sri Lankans who are willing to express their solidarity to sustain Sri Lanka’s resilience are invited to this opportunity in support of COVID – 19 prevention and social security initiative.

Introducing a Special Deposit Account to Support the National Effort to Manage the Challenges Faced due to COVID-19 Outbreak

The Government of Sri Lanka in consultation with the Monetary Board of the Central Bank of Sri Lanka (CBSL) has introduced a Special Deposit Account (SDA) with the view to seek assistance for the national effort to overcome the effects of COVID-19 outbreak in the country.

Features of the Special Deposit Account

1. Eligible Persons
a. Sri Lankan individuals resident in or outside Sri Lanka
b. Dual Citizens
c. Citizens of other States with Sri Lankan origin
d. Non-nationals resident in or outside Sri Lanka
e. Funds, corporate bodies, associations incorporated/registered outside Sri Lanka
f. Any other well-wishers

2. Minimum Deposit: No prescribed limit

3. Type of Deposit: Fixed deposits only

4. Minimum Tenure: Six months

5. SDAs can be opened:

a. with an Authorized Dealer in Sri Lanka (any Licensed Commercial Bank and National Savings Bank).

b. only with inward remittances through banking system during the six months period from the date of the relevant Regulation, i.e., 08.04.2020.

c. by transferring funds received during the above mentioned period to an Inward Investment Account (IIA) or an account in the Offshore Banking Unit (OBU) with an Authorized Dealer.

d. either in foreign currency or Sri Lanka Rupees. The acceptable foreign currencies are United States Dollars (USD), Euro, Sterling Pound, Australian Dollars, Singapore Dollars, Swedish Kroner, Swiss Franc, Canadian Dollars, Hong Kong Dollars, Japanese Yen, Danish Kroner, Norwegian Kroner, Chinese Renminbi and New Zealand Dollars.

e. as a joint account

6. Interest Rate: Higher interest paid at maturity

a. 6 months deposits - 1 percentage point per annum above the normal rate

b. 12 months deposits - 2 percentage points per annum above the normal rate

7. Repatriation of Funds: freely convertible and remittable outside Sri Lanka upon maturity

8. Exemption: Any procedural requirements specified in the Foreign Exchange Regulations published in Gazette Notification No. 2045/56 dated 17.11.2017 are not applicable

9. How to obtain further information on the Special Deposit Account?
a. The Regulation published in the Government (Extraordinary) Gazette No. 2170/4 dated 08.04.2020 and the Directions No. 04 of 2020 dated 09.04.2020 issued to Authorized Dealers in relation to the above deposit scheme can be accessed under “Downloads” in the official website of the Department of Foreign Exchange of CBSL (www.dfe.lk).

b. Director, Department of Foreign Exchange, Central Bank of Sri Lanka, No.30, Janadipathi Mawatha, Colombo 01.
Tel: +94 112 477255, + 94 112 477244, +94 112477433, +94 112477 375 Fax: +94 112 477716
Email: dfe@cbsl.lk c. From any Authorized Dealer in Sri Lanka.

All Sri Lankans and well-wishers living in Sri Lanka and abroad are invited to use this opportunity to extend their gesture of goodwill towards Sri Lanka and it’s people at this difficult time.