Eligible

Resident Investors to invest in shares of Companies incorporated outside Sri Lanka and Sovereign Bonds issued by Foreign Governments and Governmental Organizations.

“Resident Investors” are :

Category 1 : Companies other than Companies limited by guarantee registered under the Companies Act No. 07 of 2007.

Category 2 : Partnerships registered in Sri Lanka.

Category 3 : Individuals residents in Sri Lanka.

Account Type

OIA Accounts may be opened in the form of a Savings Account in designated Foreign Currencies such as -

 

• US Dollars
• Singapore Dollars
• Canadian Dollars
• Sterling Pounds
• Australian Dollars
• Euro
• Swiss Francs
• Hong Kong Dollars
• Japanese Yens
• New Zealand Dollars
• Swedish Kroners
• Danish Kroners
• Norwegian Kroners

Special Features

Closure of any OIA requires the prior permission of the Controller of Exchange.

Permitted Credits (Deposits)

• Rupee proceeds of the eligible Resident Investor converted into Foreign Currency, upto the investment requirement, subject to the stipulations set out in the Gazette notification Nos.1686/50 and 1686/52 dated 01.01.2011 – The Gazette of the Democratic Socialist Republic of Sri Lanka.
• Transfers from Foreign Currency Accounts (except the foreign currency accounts specially permitted by the Controller of Exchange) of the Resident Investors.
• Proceeds of a loan obtained from a Foreign source with the prior permission from the Controller of Exchange in order to finance an overseas investment.
• Inward remittances received as dividend payments in connection with the overseas investment.
• Proceeds of sale and maturity of Sovereign bonds.
• Profits, margins and surplus funds received from the overseas offices.
• Inward remittances received as management fees, consultancy fees and commissions related to the investments made through this account.
• Inward remittances received as sale proceeds of shares including capital gains and liquidation proceeds in the case of a liquidation of the overseas company and proceeds realized by closure of an overseas office.
• Interest earned on funds lying to the credit of the account.

Permitted Debits (Withdrawals)

• Payments for acquisition of shares in overseas companies and Sovereign bonds.
• Setting up and maintenance cost of overseas offices.
• Bank charges, broker fees, commissions related to the investments made through the OIA.
• Payments in foreign currency outside Sri Lanka for current transactions.
• Withdrawals in Sri Lanka Rupees.

Note :

• Rupee proceeds should be converted into foreign Currency and be credited to OIA only after the fulfillment of all the requirements stipulated in the above mentioned Gazettes by a Resident Investor. Under no circumstances such funds shall be retained in OIA without making the investment.
• The Bank shall obtain the following documents from the resident investor and submit such documents to the Controller of Exchange within a week of such collection.

Within three months from the outward remittance of Foreign Exchange, the Bank shall obtain the following documents from the resident investor and submit to the Controller of Exchange within a week of such collection.

• Certificate of Incorporation, Memorandum and Articles of Association of the new Company incorporated outside the country in case of an investment in the shares of an unlisted Company.
• Registration Certificate of Overseas Offices.
• Copies of the Share Certificates issued or any other evidence in respect of a share investment in an unlisted corporate incorporated outside Sri Lanka.
• Copies of share investment/enrolment certificates issued to all resident employees who subscribed to an employee share option scheme.

On monthly basis statements from relevant Central Depository System of overseas Stock Exchange with regard to the investments in listed shares of Companies incorporated outside Sri Lanka and Sovereign bonds issued by foreign governments and governmental organizations.

On an annual basis, the audited accounts of the unlisted overseas companies and overseas offices.

If the Resident Investor fails to submit any of the above documents within the stipulated time period, the bank shall report such failure to the Controller of Exchange within one week of the expiration of such period.

Click here to download the account opening application form