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Thu, 23 October 2014 19:03:18
Sri Lanka allows transfers from NRFC accounts
09 Aug, 2012 18:12:56
Aug 09, 2012 (LBO) – Sri Lanka's Central bank has relaxed exchange control regulations to allow the free transfer of funds from non-resident foreign currency (NRFC) accounts, the bank releasing a statement said.
The bank said funds can be freely transferred between and among NRFC accounts including foreign currency investments abroad.

"Necessary direction to authorized dealers has already been issued, amending the directions dated 11.07.2012 in order to make it abundantly clear that any outward remittance by non-resident foreign currency account holders would be freely permitted," the bank statement said.

"Therefore any concerns over free transferability of NRFC funds should no longer arise," the statement further said.
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READER COMMENT(S)
14. Respect Aug 11
This is a very good move. Sri Lanka is an attractive nation for capital due to tax reasons. Inflows will be greater than Outflows. NRFC does not have restrictions. One can take a bank draft at any time.
13. Niro Aug 10
If you need to produce passport/air tickets to withdraw your OWN money from the NRFC account, what's the point of depositing your money with a bank? Majority of the Sri Lankans are oblivious to the govt repressions they are under ! Any sane person should take this opportunity to move the money out of Sri Lanka before the govt closes this facility.
12. Cenral Bank Watcher Aug 10
@Kasun below: NRFC means no exchange controls and if you have to produce your air ticket and passport, it itself says that NRFC funds are treated on par with local funds which can be converted to foreign payments for current transactions freely under IMF's Article VIII status which SL agreed as far back as 1993. Holders of NRFC accounts should be able to withdraw their moneys without going through any restrictions.
11. Nisal Aug 10
I have an NRFC account. I will now whitdraw all my funds and deposit these with my current Bank in Australia. Only foolish dumb folk will have their hard earned money deposited in a country where shady deals and corruption is rife, All my friends are now considering closing their NRFC acccounts in Sri Lanka,,
10. raymond Aug 10
Kasun, you say "No Problem"?? Why should one produce one's passport and airticket to withdraw one's foreign currency. Think twice folks before opening an NRFC in SL. Closing the accounts is the best option!!
9. Roy Aug 10
Horrendous! Blunders like this will have a big impact on the economy. This is not the first time , the government was selling (50000 usd) bonds promising car permits etc like this they fooled the people so many times, when politicians want to take their money out they relax the rule ,what an ugly rule by a gang of political mafia.
8. T.S.B.Ratnayake FCMA,CGMA Aug 10
Sri Lanka is as good as any international location to park foreign earnings.Most banks including foreign banks here do offer comparatively higher interest schemes + Investment options +safety.As required anyanyware in the world one has to select options offered carefuly within the context of individual need, ones risk return profiles+financialknowledge.
7. concerned Aug 10
My Advise Dear friends, do what others do, send your money offshore in Hard money,Swiss bank acounts with 85Million of Sri Lankan money?Wonder who? why would you keep money here, apart from living expenses? Rupee was 101 in 2006, now 134? plus inflation at thats say 18% per year? theres your answer..
6. Nan Aug 09
The damage is already done and cannot be retrieved at all. Now every NRFC account holder will think twice before sending money or to keep it elsewhere. The trust and confidence hitherto held is no more. Those who took this decision will have to eat the humble pie now. No more faith in the regulator as they can reintroduce it at anytime. No guarantee.
5. Gemini Aug 09
Now there is a room for politicians other corrupt officers to transfer their black money out of the country.God bless Srilanka.
4. Kasun Aug 09
Withdrawal from NRFC in foreign currency (ex: USD) can be done when travelling abroad with the produce of the passport and air ticket. No problem!
3. Mike Aug 09
It is better in the long run NOT to open a NRFC account in Sri Lanka. If one cannot withdraw one's monies in the same currency as the NRFC account, what is the whole idiotic purpose of having the account??
2. Podda Aug 09
And what about the idiotic law on foreign currency withdrawals? If I've got a NRFC account, there is no way that I can obtain my money's worth in the same currency as the NRFC. Even for foreign travel or to open an LC. I' will have to withdraw the money by converting to Rupees. Then again buy the same foreign currency. (i.e. USD account - Withdrawal in Rs, then covert RS. to USD to open the LC) :D LOL Utter joke!
1. Podda Aug 09
What about the inward ones? Due to the plethora of outdated limitations imposed for exchange control, online money transfer systems such and PayPal and Google Checkout keep away from Sri Lanka. We have many small scale online business people who go through a lot of trouble to obtain the monies they have earned online. Besides, How can this country promote exports while there are so many limitations imposed on cash collection?