SL receives USD 87mn into Special Deposit Accounts so far; expands funding sources

Jul 13, 2020 (LBO) – Sri Lanka’s Government in consultation with the Monetary Board of the Central Bank has taken further measures to encourage the opening of Special Deposit Accounts.

The Central Bank in a statement said that Sri Lanka has received USD 87 mn into Special Deposit Accounts so far.

The Government introduced the Special Deposit Account in April to seek assistance for the national effort to overcome the effects of COVID-19 outbreak in the country.

Further Measures to Encourage Opening of Special Deposit Accounts

  1. Expansion of the sources of funding SDAs
    a. Any person who has arrived in Sri Lanka from overseas on or after 01.01.2020 can open SDAs with any Authorized Dealer on or before 07.10.2020, out of foreign exchange legitimately acquired and brought into Sri Lanka by such person subject to:
    i. a declaration made to the Sri Lanka Customs at the port of arrival where the amount of such foreign exchange exceeds USD 15,000 or an equivalent amount in any designated foreign currencies.
    ii. a declaration to the relevant Authorized Dealer where the amount of such foreign exchange is equal or less than USD 15,000 or an equivalent amount in any designated foreign currencies.

    b. Any person in, or resident in, Sri Lanka can open SDAs with any Authorized Dealer on or before 07.10.2020, out of foreign currency notes in his possession up to the limit of USD 15,000 and subject to such terms and conditions of the prevailing Regulations and Orders, subject to a declaration on the source of funds to the Authorized Dealer.

    c. In this regard, the amount of foreign currency that can be retained by a person in, or resident in Sri Lanka in his possession has been increased from USD 10,000 to USD 15,000 with effect from 01.07.2020.
  2. Obtaining loans against SDAs
    SDA holders can obtain loans from Authorized Dealers against SDAs as follows;
    a. Residents in Sri Lanka Rupees
    b. Non-resident SDA holders who are eligible to obtain loans as per the prevailing regulations