FAQs (Current Transactions)
Import of goods/services
1. Are there limits on making payments to import of goods to Sri Lanka?
No. Import of goods are considered as current transactions and any person resident in Sri Lanka may make outward remittance for import of goods without any limit though a licensed bank by producing required documents. However, imports are subject to the trade policy of the Government, and you may refer to regulations issued under the Import & Export (control) Act No. 01 of 1969 for more information.
2. Can Sri Lankans remit funds for services obtained outside Sri Lanka?
Yes. Residents may remit funds for the services obtained from a non-resident by producing required documents.
For more details, please refer Directions No. 02 of 2021.
3. Can families/parents in Sri Lanka send money to their children studying abroad?
Yes. Families/parents may remit funds for meeting tuition/living expenses and other educational related expenses by providing necessary documentary evidence to Authorized Dealers.
4. Can funds be remitted out for medical purposes?
Residents may remit funds for all expenses associated with medical purposes (surgeries, treatments) by producing required documents to Authorized Dealers.
Travel allowance/Expenses for foreign travel
5. How much foreign currency may be obtained from banks/money changes for travel purposes?
Persons resident in Sri Lanka may obtain a reasonably amount as a travel allowance based on the nature of travel, provided it is justified. From this total allowance, a maximum of USD 5,000 (or its equivalent in other foreign currency), can be taken as foreign currency notes. The remaining amount must be loaded onto a Travel Card.
6. How to obtain a Travel Card?
You may approach any Authorized Dealer in Sri Lanka to obtain a Foreign Travel Card (FTCs) when leaving Sri Lanka for travelling abroad. It will be issued by debiting any Sri Lanka Rupee account or a foreign currency account where permission has been granted to issue foreign exchange for travel purpose. The Authorized Dealer may decide the amount allowable to upload onto your travel card.
7. Can a Sri Lankans on student visa request the bank to upload their travel cards while studying abroad?
Authorized Dealers may upload FTCs issued to students upon verifying bona-fide and obtaining necessary documentary evidence issued by the respective foreign universities /educational institutions or foreign government authorities, as may be applicable, with regard to the relevant living expenses of such students in overseas.
Repatriation and Utilization of Export Proceeds
8. Within how many days proceeds from exports (goods or services) shall be repatriated to Sri Lanka?
Within 180 days from the date of exportation of goods/providing services abroad
9. Are proceeds received from providing services to foreign clients/entities required to repatriated to Sri Lanka and converted into Sri Lanka Rupees?
Yes. Proceeds received from export of services/services provided to non-residents are also required to repatriated to Sri Lanka within 180 days. However, they are not subject to the mandatory conversion.
10. Do exporters of goods required to convert export proceeds into Sri Lanka Rupees?
Yes. Exporters of goods, shall mandatorily convert residual of the export proceeds received in Sri Lanka, into Sri Lanka Rupees upon utilizing such proceeds only in respect of the authorized payments stipulated in Rule No. 04 of the Rules No. 01 of 2024 on Repatriation of Export Proceeds into Sri Lanka, within 3 calendar months (including the month of receipt) from the date of receipt of export proceeds. Please refer “Repatriation of Export Proceeds into Sri Lanka Rules No. 01 of 2024.”
11. Can export proceeds be utilized for making payments in foreign currency?
Yes. Authorized payments to utilize export proceeds in foreign currency are stipulated in the “Repatriation of Export Proceeds into Sri Lanka Rules No. 01 of 2024” for more information.
12. What are the authorized payments allowable for exporters of goods before subjecting to mandatory conversion specified under “Repatriation of Export Proceeds into Sri Lanka Rules No. 01 of 2024.”?
In terms of Rule No. 01 of 2024 following are considered as authorized payments.
- payments in respect of current transactions related to the export business;
- debt servicing expenses and repayment of foreign currency loans and accommodations obtained by the exporter of goods, where such foreign currency loan/ accommodation is a permitted borrowing in terms of the Regulations, orders and directions issued by the Central Bank of Sri lanka under the provisions of the Foreign Exchange act, No. 12 of 2017 or Banking act, No. 30 of 1988, as amended;
- payments of dividends declared to non-resident investors and /or payments of salaries to expatriate employees who are foreign nationals or dual citizens as permitted under the directions issued in terms of the provisions of the Foreign Exchange act, No. 12 of 2017;
- withdrawal in foreign currency notes or transfer of funds for travel purposes related to export business;
- payments in respect of making investments in Sri Lanka Development Bonds in foreign currency up to ten per-centum (10%) of the export proceeds, so received;
- payments to indirect exporters of goods and services who have commitments in foreign currency as permitted under the directions issued in terms of the provisions of the Foreign Exchange act, No. 12 of 2017
13. Do indirect exporters receive payment in foreign exchange from a direct exporter of good also subject to mandatory conversion requirement?
Yes. Indirect Exporters who receives payment from an exporter of goods, shall mandatorily convert residual of the export proceeds received in Sri Lanka, into Sri Lanka Rupees upon utilizing such proceeds only in respect of the authorized payments stipulated in Rule 4 of the Repatriation of Export Proceeds into Sri Lanka Rules No. 01 of 2024, within 3 calendar months (including the month of receipt) from the date of such receipt. Please refer “Repatriation of Export Proceeds into Sri Lanka Rules No. 01 of 2024” for more information”
14. What are the authorized payments allowable for indirect exports before subjecting to mandatory conversion specified under “Repatriation of Export Proceeds into Sri Lanka Rules No. 01 of 2024.”?
In terms of Rule No. 01 of 2024 following are considered as authorized payments.
- payments in respect of current transactions related to the export business;
- debt servicing expenses and repayment of foreign currency loans and accommodations obtained by the exporter of goods, where such foreign currency loan/ accommodation is a permitted borrowing in terms of the Regulations, orders and directions issued by the Central Bank of Sri Lanka under the provisions of the Foreign Exchange act, No. 12 of 2017 or Banking act, No. 30 of 1988, as amended;
- payments of dividends declared to non-resident investors and /or payments of salaries to expatriate employees who are foreign nationals or dual citizens as permitted under the directions issued in terms of the provisions of the Foreign Exchange act, No. 12 of 2017;
- withdrawal in foreign currency notes or transfer of funds for travel purposes related to export business;
- payments in respect of making investments in Sri Lanka development Bonds in foreign currency up to ten per-centum (10%) of the export proceeds, so received;
Eligibility of opening foreign currency account for resident individuals
15. Can residents in Sri Lanka open foreign currency bank accounts?
Yes. Sri Lankan individuals may open Personal Foreign Currency Accounts (PFCA) with any authorized dealer to receive inward remittances (for further details refer Directions No. 04 of 2021).
Further, persons resident in Sri Lanka (including companies, partnerships etc.) who earn foreign exchange from non-residents may open Business Foreign Currency Accounts (BFCA) (for further details refer Directions No. 05 of 2021).
16. Can PFCA accounts held as joint accounts?
PFCAs may be held as joint accounts with another eligible person.
(However, nonnationals either on temporary visit to Sri Lanka or intending to visit Sri Lanka are not eligible to open and maintain these accounts as joint accounts.)
17. Can minors open PFCAs?
Yes. However, in the event a PFCA is to be opened in the name of a minor who is a Sri Lankan national or of Sri Lankan origin and residing outside Sri Lanka, such accounts shall be opened by crediting remittances in foreign exchange received from their parents, grandparents or guardians who are residents outside Sri Lanka or transferring funds from existing PFCAs of parents, grandparents or guardians.
18. Can unutilized foreign currency taken as travel allowance be deposited to a foreign currency account?
Yes, unutilized foreign currency obtained for travel purpose by the account holder and/or immediate family member can be deposited into a Personal Foreign Currency Account (PFCA), where such foreign currency has been purchased from an Authorized Dealer or an Authorized Money Changer (AMC) for the purpose of travelling abroad, subject to establishing bona-fide and exercising due diligence of the underlying transaction by the Authorized Dealer.
19. Can a new Personal Foreign Currency Account (PFCA) be opened by depositing unutilized balance of foreign travel allowance?
Yes. A new PFCA may also be opened for an individual with a deposit of foreign currency notes brought back to the country being unutilized travel allowance by such individual where such foreign currency has been purchased from an Authorized Dealer or an Authorized Money Changer (AMC) for the purpose of travelling abroad, subject to establishing bona-fide and exercising due diligence of the underlying transaction by the AD.
20. Can parents transfer funds from their PFCAs to children’s PFCAs as a gift?
Yes. Transfers between PFCAs of immediate family members are permitted.
21. Can the holders of Personal Foreign Currency Accounts withdraw foreign currency notes for any purpose?
No. Withdrawals in foreign currency notes can be made only for travel purposes subject to a maximum of USD 5,000 or its equivalent in another foreign currency.
Possession of Foreign currencies by residents
22. How much foreign currency can be kept with a resident in Sri Lanka?
Any person in, or resident in, Sri Lanka may retain in his possession foreign currency notes up to the value of USD 10,000 or its equivalent in other foreign currencies, provided that such foreign currency represents
a) foreign currency purchased by such person from an authorised dealer or a restricted dealer for travel abroad of such person and brought back as unutilized while returning to Sri Lanka; or
b) foreign currency received by such person from outside Sri Lanka as a payment for a service rendered or goods supplied abroad by such person to a person resident outside Sri Lanka, or from any other legitimate source; or
c) foreign currency notes withdrawn by such person from his Personal Foreign Currency Accounts or Business Foreign Currency Accounts for travel purpose.
Import and Export of Foreign currencies, and declaration requirements
23. Is there any restriction or prohibition of caring in foreign currency notes into Sri Lanka?
No. There is no restriction or prohibition. However, there is a declaration requirement (declaration to Sri Lanka customs) when exceeding certain thresholds.
24. Is it required to declare foreign currency carried into/out of Sri Lanka by residents?
- Any person departing from or arriving in Sri Lanka who carries foreign exchange exceeding USD 15,000 or its equivalent in other foreign currencies shall make a declaration to Sri Lanka Customs.
- Further, a person arriving in Sri Lanka intends to take back unutilized foreign currency notes exceeding USD 10,000 or its equivalent in other foreign currencies or departing from Sri Lanka carries foreign currency notes exceeding USD 10,000 or its equivalent in other foreign currencies, is required to make a declaration to Sri Lanka Customs.
25. Can a person travelling from Sri Lanka take out Sri Lanka Rupees?
Any person in, or resident in, Sri Lanka may take out of, or bring into Sri Lanka, Sri Lanka currency up to the value of Sri Lanka Rupees 20,000.
Acceptance and possession of foreign currencies
26. Can a person resident in Sri Lanka accept foreign currencies from a non-residents in Sri Lanka for providing goods and services to such person?
Yes. Such foreign currencies shall be deposited into a Business Foreign Currency Account of such person or sold to an authorized dealer (i.e. licensed bank in Sri Lanka) within seven (7) days from the date of acceptance.
27. Can foreign currency received by a person resident in Sri Lanka from providing goods or services retained by such person?
Yes, up to maximum of 7 days from such acceptance.
Foreign exchange acquired by a person resident in Sri Lanka from providing goods and services to non-residents in Sri Lanka shall be deposited into a Business Foreign Currency Account of such person or sold to an authorized dealer (i.e. licensed bank in Sri Lanka) within seven (7) days from the date of acceptance.
Use of Electronic Fund Transfer Cards (EFTCs) (issued by banks in Sri Lanka)
28. Are persons in Sri Lanka permitted use their credit/debit cards to make payments for foreign payments?
Yes, Electronic Fund Transfer Cards (EFTCs) may be used for making payments to persons resident outside Sri Lanka only in respect of current transactions of personal nature.
29. Can Sri Lankans going abroad on work visa or permanent residency take their credit/debit cards issued by banks in Sri Lanka?
If the cardholder migrates or leaves Sri Lanka for permanent residence or employment abroad, the card issued to such person in Sri Lanka shall be surrendered to the card issuing bank, except in the event that an EFTC is issued for making settlements in foreign exchange against funds held in their foreign currency accounts or on the basis that outstanding amounts are settled through inward remittances.
30. Are there any prohibited payments to be made via EFTCs?
EFTCs shall not be used make following payments.
a. Dealings in foreign exchange (Forex Trading);
b. Payments related to virtual currency transactions;
c. Payments related to betting, gaming and gambling activities outside Sri Lanka;
d. Payments for import of goods to Sri Lanka for commercial purpose subject to the Regulations and Operating Instructions issued under the Import and Export (Control) Act, No. 01 of 1969 and any amendments thereto.
Foreign currency loans
31. What are the categories of persons considered as residents in Sri Lanka?
Please refer Order issued under the Section 31 of the FEA.
32. Can a company in Sri Lanka obtain a foreign currency loan form a bank in Sri Lanka?
BFCAs holders who earn foreign exchange may obtain a foreign currency loan from authorized dealers, subject to proving their ability to servicing such loans entirely from their foreign exchange earnings. For further information refer the Directions No. 09 of 2021 issued to Authorized Dealers on Accommodations to Business Foreign Currency Accounts (BFCAs) holders.
33. Is there any possibility to repay the BFCA accommodations in Sri Lanka Rupees?
ADs shall carry out recovery of accommodations in Sri Lanka Rupees, only as a last resort where necessary, when recovery of such accommodations in foreign currency is remote.
34. Can a Sri Lankan working abroad obtain loans from banks in Sri Lanka?
Yes, subject to repaying such loans in inward remittances or balances in their foreign currency accounts. Further details: Directions No. 10 of 2021 issued to Authorized Dealers on Loans and Advances to Sri Lankans Employed Abroad.
35. Can a loan obtained by Sri Lankan employed abroad repaid in Sri Lanka Rupees?
Such loans may be serviced in LKR when borrower discontinued or ceased his/her overseas employment and becomes a resident in Sri Lanka. In addition, Authorized Dealers may consider recovering such loans in LKR, as a last resort where necessary, when recovery of such loans and advances in foreign currency is remote.
36. Can Sri Lankan national holding Permanent Residency or Dual Citizenship in another country obtain loans from Sri Lanka?
Yes. They may obtain loans for residential purposes in Sri Lanka and such loans shall be repaid in foreign currency. Further details: Directions No. 11 of 2021 issued to Authorized Dealers on Loans to Sri Lankans, Resident Outside Sri Lanka on Permanent Residency Visa (PR) in another Country and Dual Citizens.
37. Is there any possibility to repay the loans obtain by PR/Dual Citizens from Sri Lanka in LKR?
Recoveries of loans, in Sri Lanka Rupees (in the event of a default) shall be carried out only at a stage where such loans have been classified as non-performing at least in the sub-standard category.
38. Can parents in Sri Lanka send funds to service the loans obtained by their children who are studying abroad?
parents or guardians in Sri Lanka may send funds to the respective lending institutions to service loans obtained by their children (Sri Lankan citizens who have proceeded outside Sri Lanka for educational purpose) through a licensed bank in Sri Lanka.
Accounts for Diplomatic Missions
39. What are the types of accounts permitted to opened by Foreign Diplomatic Missions in Sri Lanka?
Diplomatic Foreign Currency Accounts (DFCAs)
Diplomatic Rupee Accounts (DRAs)
(Further details are available on Directions No. 06 of 2021)