ANNOUNCEMENT 22 Nov 2010In November 2010, the government of Sri Lanka announced altered domestic business conditions for foreign investors.
NUMBER OF INTERVENTIONS
On 22 November 2010, the Sri Lankan Central Bank issued a notification guiding banks to provide a new facility called Inward Investment Account (IIA) for foreign companies who are registered as overseas companies in Sri Lanka. The new facility shall facilitate foreign investment in the country.
The account can be used for transactions including local earnings and expenses, foreign receipts (coverted into rupee), and profit/royalty/franchisee or other such expense payments. All other transactions will require prior approval. Further, an overdraft facility is not available for this account.