Inward Investment Accounts
Eligibility
- A non- national, resident in or outside Sri Lanka.
- A Sri Lankan dual citizen, resident in or outside Sri Lanka.
- Sri Lankan national who has obtained Permanent Residency status or citizenship in another country, resident in or outside Sri Lanka
- A Sri Lankan citizen employed abroad, resident outside Sri Lanka (excluding emigrants).
- A company incorporated outside Sri Lanka.
- A partnership registered outside Sri Lanka.
- Country funds, Regional Funds, Mutual Funds, Unit Trusts and Foreign Institutional Investors established outside Sri Lanka.
- An administrator or executor of the estate of a deceased person, who maintained an IIA with a Bank
- A receiver or liquidator of a company that maintained an IIA with a Bank.
Special Benefits
- Inward Remittances credited to Accounts free of charge
- 100% protection on your investments
Required documents and information
- For individuals, account opening application, a photocopy of valid Passport (Pages depicting details of the applicant, Visa and endorsements for alterations), KYC Form, FATCA declaration and any other documents stipulated by the Bank from time to time.
- In respect of companies incorporated outside Sri Lanka, Foreign Institutional investors, etc., account opening application as appropriate, KYC Forms, FATCA declaration, other relevant documents stipulated by the Bank.
- Information and documents evidencing the eligibility to open an IIA as relevant.
General
- Inward Investment Accounts (IIA) can be opened and maintained in the form of Savings, Current (without overdrawing facility and cheque drawing facility) or Fixed Deposit accounts in Sri Lanka Rupees (LKR) or any designated foreign currency, i.e. USD,GBP, EUR, AUD, CAD, HKD, SGD, JPY, SEK, NZD, DKK, NOK, CNY, CHF and LKR.
- IIAs shall be held as sole accounts. IIAs may be held as joint accounts by eligible individuals with an immediate family member who is eligible under subparagraphs (a), (b) and (c) of the paragraph 1
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Permitted Credits
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Permitted Debits
- Remittances in foreign exchange received from outside Sri Lanka in favor of the account holder through the banking system.
- Foreign exchange brought into Sri Lanka by the account holder upon declaration to the Customs Department, subject to the Order issued under Section 8 of the FEA.
- Transfers from Personal Foreign Currency Accounts or IIAs or Emigrant’s Remittable Income Account or Diplomatic Foreign Currency Accounts or Diplomatic Rupee Accounts or accounts maintained in the Offshore Banking Unit, of the account holder.
- Transfers, as any income and any capital proceeds received from capital transactions in Sri Lanka of the account holder, as permitted under the regulations or provisions of the repealed Exchange Control Act or the FEA, from a Sri Lanka rupee account or Business Foreign Currency Account or an account maintained in the Offshore Banking Unit of another person (i.e. investee or tenant or lessee or buyer, who is a resident person).
- In the case of the selling the investments made through the same IIA under the regulations or provisions of the repealed Exchange Control Act or the FEA to another person (i.e. buyer), transfers, as sale proceeds from an IIA of such buyer.
- Settlement charges under a court Order related to the capital transactions made through the IIA.
- Claims received by the accountholder as determined by the Central Depository Systems (Private) Limited and Colombo Stock Exchange.
- Transfers from an External Commercial Borrowing Account of a person resident in Sri Lanka (i.e. the borrower), as recoveries of loans granted by the account holder to the borrower, as permitted in the regulations or in terms of the provisions of the repealed Exchange Control Act or the FEA.
- Transfers, as repayments of the loans granted under the regulations or the provisions of the FEA, to licensed commercial banks or licensed specialized banks or the Government of Sri Lanka or State-Owned Enterprises (i.e. borrower), from a rupee account of the borrower.
- Repayments of the loans granted during the period from the date of 20th November 2017 to the date of these Directions by the account holder through the same IIA to a person resident in Sri Lanka (i.e. the borrower), from a Sri Lanka rupee account or Business Foreign Currency Account or account maintained in the Offshore Banking Unit, of the borrower.
- Any income or any capital proceeds derived from a residential property acquired by the accountholder utilizing a loan obtained under the Directions No. 11 of 2021, subject to the subparagraph of 6 (e).
- [Directions No. 11 of 2021 – Loans to Sri Lankans Resident Outside Sri Lanka on Permanent Residency Visa (PR) in another country and Dual Citizens]
- Proceeds of non-materialized capital transactions excluding the loans (including Initial Public Offering) in Sri Lanka under the regulations, for which the funds were remitted through the same IIA, within three months from the date of payment made for the investment. In case of the investment in a condominium property, such proceeds returned by the property developer from the Business Foreign Currency Account of the property developer, before the completion of such property due to any failure to meet the conditions in the agreement or termination of the agreements between parties.
- Transfers of the migration allowance or current income from the Capital Transactions Rupee Account of the same account holder.
- Where the accountholder is a non-national resident in or outside Sri Lanka;
- Any income and any capital proceeds, received from capital transactions undertaken by the account holder in Sri Lanka while being a resident in Sri Lanka, utilizing the funds out of salaries, superannuation benefits of the account holder [including Employees Provident Fund (EPF), Employees Trust Fund (ETF), gratuity and pensions or any other retirement benefits].
- Transfers of USD 30,000 per annum from the Capital Transactions Rupee Account of the accountholder.
- Where the accountholder is a company incorporated outside Sri Lanka; Transfers of USD 30,000 per annum from the Non Resident Rupee Account of the accountholder.
- Where the account holder is an administrator/executor of the estate of a deceased person or a receiver/liquidator of a company.
- Any income or any capital proceeds, received from capital transactions in Sri Lanka made by the deceased person or liquidating company as permitted in the regulations or provisions of the repealed Exchange Control Act or the FEA.
- Funds transferred from IIAs of such deceased person or liquidating company.
- Transfers from an IIA of an administrator/executor of the estate of a deceased person or a receiver/liquidator of a company, in the event of the accountholder is a beneficiary.
- Interest earned on the funds held in the account.
- Any outward remittances in favor of the accountholder.
- Disbursements in Sri Lanka in Sri Lanka Rupees.
- Transfers to Personal Foreign Currency Accounts or IIAs or Diplomatic Foreign Currency Accounts or Diplomatic Rupee Accounts or accounts maintained in the Offshore Banking Unit, of the same account holder.
- Payments relating to capital transactions undertaken in Sri Lanka by the account holder, in terms of the permissions granted under the regulations or the provisions of FEA, to;
- A rupee account of the investee/seller (who is a resident) of the investment.
- A foreign currency account of the investee or issuer who is a resident if the said investee or issuer is permitted to receipt such proceeds in foreign currency in terms of the foreign exchange regulations or special permission granted for such investee/ issuer.
- An IIA of another person (i.e. seller) in respect of the purchase of permitted investment.
- A Business Foreign Currency Account of the property developer if the investment is to purchase a condominium property.
- An account maintained in Offshore Banking Unit of the investee, if the investee has been exempted from relevant provisions of the FEA on investments into Sri Lanka under the Board of Investments Law.
- Transfer of proceeds of the loan granted under the regulations or the provisions of the FEA, to a licensed commercial banks or licensed specialized banks or the Government of Sri Lanka or State-Owned Enterprises (i.e. borrower), to a rupee account, of the borrower.
- Transfer of proceeds of the loan granted under the regulations or the provisions of the FEA, to a licensed commercial banks or licensed specialized banks (i.e. the borrower) to an Outward Investment Account of the borrower, if such borrowings are made for the purpose of financing outward investment of the borrower under the regulations or the provisions of the FEA.
- Transfer of proceeds of the loans granted under the regulations or the provisions of the FEA, to an External Commercial Borrowing Account of the person resident in Sri Lanka (i.e. borrower).
- Payments relating to the investments in shares, debt securities issued by a company incorporated in Sri Lanka (i.e. investee) under the regulations or the provisions of FEA, to an Outward Investment Account of the investee, if such proceeds of the investment are to be utilized for the purpose of financing outward investment of the investee under the regulations or the provisions of FEA.
- Settlement charges under a court Order related to the capital transactions made through the IIA.
- Claims to be paid by the accountholder as determined by the Central Depository Systems (Private) Limited and Colombo Stock Exchange.
- Where the account holder is an administrator/executor of the estate of a deceased person or a receiver/liquidator of a company;
- Outward remittances in favour of the beneficiary or administrator/executor or receiver/liquidator of the company, outside Sri Lanka.
- Transfers to the IIA of the beneficiary.
- In the case of beneficiary is a resident person in Sri Lanka, transfers to a Sri Lanka Rupee account or existing Personal Foreign Currency Accounts of the beneficiary.
Outward Investment Account
Eligibility
- Companies incorporated in Sri Lanka under the Companies Act, No. 7 of 2007 other than a company limited by guarantee.
- A Licensed Commercial Bank or Licensed Specialized Bank, in terms of the Banking Act No. 30 of 1988.
- Regulated/ licensed entities (excluding the eligible investors under (a) and (b) above), under the Central Bank, Securities Exchange Commission, Insurance Regulatory Commission of Sri Lanka.
- Employees’ Provident Fund established under the Employees’ Provident Fund Act No. 15 of 1958 or Approved Provident Funds declared by the Commissioner General of Labour.
- A partnership registered in Sri Lanka; and
- An individual resident in Sri Lanka or/with a sole proprietorship registered in Sri Lanka by such individual (as applicable).
Required documents and information
- For individuals, account opening application, a photocopy of National Identity Card or Passport (pages depicting photo, details and alterations) KYC forms, FATCA declaration and any other documents stipulated by the Bank from time to time.
- For partnerships and companies, account opening application and identification documents as appropriate, KYC forms, FATCA declaration and any other documents stipulated by the Bank from time to time.
- Any other documents and Information required by the bank.
Opening and Maintaining the Accounts
- OIA can be opened and maintained as Savings or Fixed Deposit (out of the returns derived from an outward investment) or Current (without overdrawing facility and cheque drawing facility) accounts, as a foreign currency account in any designated foreign currency i.e. USD,GBP, EUR, AUD, CAD, HKD, SGD, JPY, SEK, NZD, DKK, NOK, CNY, and CHF.
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Permitted Credits
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Permitted Debits
- Sri Lanka Rupees converted into foreign currency, to the extent such limits specified for outward investments, in the regulations or the special permissions granted in terms of the provisions of the repealed Exchange Control Act or FEA.
- Transfers from Business Foreign Currency Accounts or Personal Foreign Currency Accounts or OIA, of another person (i.e., buyer), being sale proceeds of an outward investment made through the same OIA.
- Transfers of proceeds of the loans obtained from a foreign lender by the account holder through an External Commercial Borrowing Account of the accountholder, for the purpose of financing outward investments permitted in terms of the provisions of the repealed Exchange Control Act or the FEA.
- Transfers of proceeds of the loans obtained from a foreign lender by licensed commercial banks/ licensed specialized banks/ State Owned Enterprises, from an account outside Sri Lanka or an Inward Investment Account or an account maintained in the Offshore Banking Unit (OBU), of the lender, for the purpose of financing outward investments permitted in the regulations or in terms of the provisions of the repealed Exchange Control Act or FEA.
- Transfer of proceeds of the loans obtained from a foreign lender by licensed commercial banks/ licensed specialized banks, from the Nostro Account of the borrower for the purpose of financing outward investments permitted in the regulations or in terms of the provisions of the repealed Exchange Control Act or FEA.
- Remittances, as any income and any capital proceeds of the outward investments, made through the same OIA, as permitted in the regulations or in terms of the provisions of the repealed Exchange Control Act or the FEA.
- Remittances, as settlement chargers under a court Order related to the outward investment made through the OIA.
- Remittances, as any income and any capital proceeds received from any asset/investment in overseas acquired/held by the accountholder, for no consideration, as permitted in the regulations or the repealed Exchange Control Act.
- Remittances, as any income and any capital proceeds of shares received under an Employee Share Ownership Plan or Employee Share Option Scheme where the outward remittances for such investment was made by a company or branch office established in Sri Lanka (i.e., employer) on behalf of the accountholder (i.e., employee), as permitted in the regulations or the repealed Exchange Control Act.
- Remittances, as any income and any capital proceeds of any investment made through an OIA of another person which has been inherited to the accountholder from such person, subject to the regulations.
- Transfers from an Inward Investment Account of another person (i.e., investor) being proceeds of investments in shares, debt securities issued by a company incorporated in Sri Lanka (i.e., accountholder), if the accountholder intends to utilize such funds for an outward investment permitted under the regulations or the provisions of the repealed Exchange Control Act or the FEA.
- Transfers from an OIA of another person, being outstanding balance of the OIA received by way of inheritance subject to the inheritance and succession laws in Sri Lanka.
- Proceeds of non-materialized Outward Investments made under the regulations, for which the funds were remitted through the same OIA, within three months from the date of payment made for the investment.
- Management fees, consultancy fees and commissions in relation to the outward investments.
- Interest earned on the funds held in the account.
- Remittances relating to an outward investment undertaken by the account holder in terms of the regulations or the provisions of the repealed Exchange Control Act or the FEA.
- Transfers to an OIA or Personal Foreign Currency Accounts or Business Foreign Currency Accounts of another person (i.e., seller), to purchase a permitted investment in overseas from the seller which was made through the same OIA or Personal Foreign Currency Accounts or Business Foreign Currency Accounts in terms of regulations or the provisions of the repealed Exchange Control Act or the FEA.
- Payments for current transactions of the account holder.
- Transfers to Personal Foreign Currency Accounts or Business Foreign Currency Accounts or an account maintained in the OBU, of the account holder, being any income and any capital proceeds received from an outward investment, where such investments had been made by debiting such Personal Foreign Currency Accounts or Business Foreign Currency Accounts or account in OBU, or by utilizing the funds transferred from such accounts into the OIA, proportionately to the contributions.
- Transfers to OIAs of the same account holder.
- Transfers to External Commercial Borrowing Account of the account holder, for the purpose of repayment of loans obtained from an overseas lender.
- Transfers of the outstanding balance to an OIA of a beneficiary/heir, subject to the inheritance and succession laws in Sri Lanka.
- Withdrawal in foreign currency notes or transfer of funds for uploading a Foreign Travel Card, up to the limits specified in the Directions No. 02 of 2021 on current transactions (or equivalent in any other foreign currency), for travel purpose of the account holder and/or immediate family members.
- Disbursements in Sri Lanka in Sri Lanka Rupees.
Opening and Maintaining the Accounts
- OIA can be opened and maintained as Savings or Fixed Deposit (out of the returns derived from an outward investment) or Current (without overdrawing facility and cheque drawing facility) accounts, as a foreign currency account in any designated foreign currency i.e. USD,GBP, EUR, AUD, CAD, HKD, SGD, JPY, SEK, NZD, DKK, NOK, CNY, and CHF.
Documents and Information Required
- For individuals, account opening application, a photocopy of National Identity Card or Passport (pages depicting photo, details and alterations) KYC forms, FATCA declaration and any other documents stipulated by the Bank from time to time.
- For partnerships and companies, account opening application and identification documents as appropriate, KYC forms, FATCA declaration and any other documents stipulated by the Bank from time to time.
- Any other documents and Information required by the bank.
Manager - Foreign Currency Department , People’s Bank, Overseas Customer Services
+94 112332745
0112332746 / 2334278 / 2437621 / 2446409
nrfc@peoplesbank.lk