As per the Direction No.1 of 2023 dated 27th February 2023 issued by the Department of Foreign Exchange, Sri Lanka, Authorized Dealers are issued with directions in respect of Special Foreign Currency Accounts for investees to facilitate Current Transactions (SFCA – Investee).
Accordingly, Companies incorporated in Sri Lanka under the Companies Act No. 7 of 2007 that are receiving investments into the share capital of the company for the purpose of repaying foreign currency loans and future payment of current transactions are entitled to open and maintain the said accounts.
Opening and Maintenance of the said account is valid until 31st December 2023. The SFCA – Investee account can be opened and maintained in any of the designated foreign currencies as a current (without overdraft facility and cheque drawing facilities) or savings accounts out of the proceeds received as investment into the share capital of a company. Such proceeds are also required to be routed through Inward Investment Account (IIA) by non-resident investors.
Permitted Debits and Credits are as follows:
| Permitted Credits | Permitted Debits |
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Further information stated in the Direction can be viewed on https://www.dfe.lk/
Samanthi Lakmali Dias
Foreign Legal Advisor (Sri Lanka)