Investments outside Sri Lanka

1.      What are the permitted investments outside Sri Lanka?

Any eligible person resident in Sri Lanka may proceed with the following categories of capital transactions (i.e. investments) outside Sri Lanka, subject to the limitations and terms and conditions stipulated in the Regulations No. 1 of 2021.

  1. Ordinary Shares,
  2. Units, Preference Shares,
  3. Corporate Bonds,
  4. Debentures
  5. Sovereign Bonds
  6. Overseas Offices
  7. Employee Share Ownership Plan or Employee Share Option Scheme

Any investment exceeding the limits specified in the Regulations No 1 of 2021 requires a special permission under the Section 7(10) of Foreign Exchange Act, No 12 of 2017 (FEA). Such requests shall be forwarded to the Director, Department of Foreign Exchange of the Central Bank of Sri Lanka.

2.      Mechanism of channeling funds pertaining to the investments

The outward remittances pertaining to the above investments, shall be routed through an Outward Investment Account (OIA) opened by the eligible resident person with an Authorized Dealer (AD) in Sri Lanka.

Any income or capital proceeds received from such investments shall be brought into Sri Lanka via the same OIA, within three months from the receipt of proceeds.

3.      Procedure to be followed for proceeding the investment

Eligible resident investors shall liaise with an AD in Sri Lanka in order to open OIA and to proceed with the remittances pertaining to the permitted capital transactions outside Sri Lanka.

An eligible resident investor shall obtain a clearance letter from the Department of Foreign Exchange that there is no pending investigation under the provisions of the FEA or the repealed Exchange Control Act for each outward remittance for the capital transactions. The request for the clearance letter shall be forwarded as per the specimen format provided by the Department of Foreign Exchange.

Special notes to the applicants

  • The eligible person who wishes to remit the funds pertaining to the capital transactions are abided to submit any information/documentary evidence to the satisfaction of the AD on the compliances to the regulations and any failure to do so would be caused to decline the request.
  • Currently, the Order issued under Section 22 of the FEA, has imposed temporary suspensions/limitations on outward remittances for the permitted capital transactions by residents.

References

Regulations No.1 of 2021 published in the Government Gazette Notification No.2213/34 dated 03.02.2021

Order issued under Section 22 published in the Government Gazette Notification No.2441/14 dated 18.06.2025

Directions No.14 of 2021 issued to the Authorized Dealers on Outward Investments Account