People's Bank to accept foreign investment deposits

The People's Bank has introduced a scheme to accept foreign investments, through its newly unveiled product Special Foreign Investment Deposit Accounts (SFIDA).

This follows a Central Bank directive that has permitted authorised dealers, such as People's Bank, to open and maintain such accounts and deposits.

"The aim is to open investment opportunities to non residents interested in investing in Sri Lanka, thereby gaining value for their investment as well as contributing to Sri Lanka's economic development.

We want to encourage investors to come to our country by building their confidence through the measures proposed in this scheme, because that in turn will undoubtedly improve domestic investment drives," said Chairman of People's Bank W. Karunajeewa.

Investments in deposits will be accepted from persons resident outside Sri Lanka corporate bodies incorporated outside Sri Lanka and foreign institutional investors such as country funds, mutual funds and regional funds.

SFIDA accounts can be opened and maintained at any People's Bank branch in designated foreign currencies, which include US Dollars, Sterling Pounds, Euros, Australian Dollars, Canadian Dollars, Hong Kong Dollars, Singapore Dollars, Japanese Yen, Swedish Kronar and Swiss Francs or in Sri Lankan Rupees.

The Bank accepts these deposits whether they are in the form of inward foreign transfers, travellers' cheques, bank drafts or currency notes brought into the country, upon declaration to the Sri Lanka Customs.

These can be deposited into a SFIDA savings account or a SFIDA fixed deposit account, provided the minimum balance is US$ 10,000 or equivalent in the aforementioned currencies.

Foreign currency fixed deposit accounts can be opened for periods ranging from one month, three months, six months and 12 months, while local currency fixed deposit accounts can be opened for three months, six months and 12 months.

Special interest rates are offered to these deposits, while the rates of interest for substantial deposits are negotiable.

These investments are exempted from income tax, withholding of income tax and debit tax.