1. Can a new Personal Foreign Currency Account (PFCA) be opened by depositing unutilized balance of foreign travel allowance?

   No. New PFCAs cannot be opened by depositing unutilized foreign currency and they need to sell it to an authorized dealer or restricted dealer for local currencies.
   
   

2. What kind of documentary evidence should be submitted to banks, when opening new accounts?

   Other than the documents/information stated in the respective Directions issued to authorized dealers (banks), any other document/information may be requested by the bank in accordance with permission of the Act based on their general banking practices, procedures and applicable ‘Know-Your-Customer’ regulations.
   
   

3. Are dual citizens eligible to open Personal Foreign Currency Accounts (PFCAs)? 

   Yes. Dual citizens are eligible to open PFCAs whether they are resident or non-resident in Sri Lanka.
   (Refer paragraph 1(1) of Schedule II of Regulations No. 3 of 2017)
   
   

4. Can any Sri Lankan resident individual open a Personal Foreign Currency Account (PFCA) without having a regular foreign exchange income?

   Yes. Any person who receives foreign exchange either through the banking system as inward remittances or from a non-resident/PFCA of another person can open a PFCA.
   
   

5. If a person resident outside Sri Lanka remits foreign currency to a person resident in Sri Lanka, can the recipient open a Personal Foreign Currency Account (PFCA) with such funds?

   Yes. A PFCA can be opened by any type of inward remittance received through the banking channels.
   
   

6. Can the holders of Personal Foreign Currency Accounts and Business Foreign Currency Accounts withdraw foreign currency notes for any purpose?

   No. Withdrawals in foreign currency can be made only for travel purposes subject to a maximum of USD 10,000 or its equivalent in another foreign currency.
   (Refer paragraph 1(3)(g) of Schedule II of Regulations No. 3 of 2017)

1. Can funds be remitted for medical purposes?

   All expenses associated with medical purposes can be remitted out by producing required documents to authorized dealers since they are considered as current transactions.
   (Refer 3.1.1 of the Schedule II to the Directions No. 2 of 2021)
   
   

2. Does “monetary gifts” fall under current transactions?

   No. Only the transfers related to gifts of food, clothing and other consumer goods, medical supplies, etc associated with relief efforts are permitted under current transactions.
   
   

3. Can monthly accommodation/living expenses be remitted out under family maintenance?

   A person in or resident in Sri Lanka can freely remit funds for maintenance of their families or dependents (parents, spouse or children) living in abroad.
   
   

1. Can the Sri Lankans employed abroad obtain lease facilities from banks with absolute ownership of vehicles?

   Yes. Sri Lankans employed abroad can obtain loans for any purpose in Sri Lanka.
   (Refer Directions No. 10 of 2017)

1. Who have proceeded outside Sri Lanka on temporary basis over 182 days are considered as “non-residents”. Therefore, what is the status of a person who has gone for a travel for more than 182 days and now in Sri Lanka and request to open an account?

   Citizens of Sri Lanka are considered as residents in Sri Lanka once they come back to the country since such temporary visits are done on ‘visitor visa’. Therefore, they are eligible to open any category of accounts available for residents in Sri Lanka.

1. As per the regulation, persons who have proceeded outside Sri Lanka for a period of more than 182 days have to be considered as non-residents. Therefore, aren’t the dual citizens who just arrived Sri Lanka eligible for applying credit cards?

   Electronic Fund Transfer Cards (including credit cards) can be issued to any person in Sri Lanka. Therefore, whatever the residential status as defined in the regulations, any dual citizen can obtain a credit card if such person is in Sri Lanka at the time of applying the card. Further, dual citizens who are defined as residents outside Sri Lanka can obtain credit cards up to a limit of 90% funds available in their foreign currency accounts in Sri Lanka held as collateral.(Refer Direction No. 02 of 2017)

1.  Have foreign currency payments for imports been suspended/limited by the Order made under Section 22?

No. Payments for imports have not been suspended/limited by the said Order.

2.  Have outward remittances for education expenses, living expenses and for other purposes of current in nature been suspended/limited by the Order made under Section 22?

No. Payments for education expenses, living expenses and for other transaction of current in nature have not been suspended/limited by the said Order.

3.  Have all outward remittances through Personal Foreign Currency Accounts (PFCAs) and Business Foreign Currency Accounts (BFCAs) been suspended/limited by the Order made under Section 22?

Payments for current transactions through PFCAs and BFCAs have not been restricted by the said order.

However, payments for capital transactions through the said accounts has been limited, during the effective period of this Order.

4.  Have the payments of dividends and other capital proceeds relating to the investments made by non-residents in Sri Lanka through Inward Investment Accounts been suspended/limited by the Order made under Section 22?

No. Payments of dividends and other capital proceeds have not been suspended/limited by the said Order.

5.  Can emigrants repatriate LKR funds held in Sri Lanka during the effective period of the Order under Section 22?

Yes. An emigrant who claims Migration Allowance for the first time may remit USD 100,000 during the effective period of the said Order.

1.  Who are Authorized Money Changers (AMCs) and what are their permitted activities

AMCs refer to entities that may be granted authorization to buy, sell, and exchange foreign currencies, within the limits outlined in the permit issued under Section 9, read in conjunction with Section 4(2) of the Foreign Exchange Act, No. 12 of 2017.

The activities that may be permitted for AMCs include:

1. Buying foreign currency notes
2. Buying and exchanging foreign currency notes
3. Buying, selling and exchanging foreign currency notes (only for a few selected AMCs)

2.  Who are the Authorized Money Changers (AMCs) in Sri Lanka?

An updated list of AMCs, their permitted activities, and contact details are published on the official website of the Department of Foreign Exchange (DFE) Click here 

3.  Can AMCs that are permitted to sell foreign currencies do so for any purpose to any person?

No. AMCs are permitted to sell foreign currency notes only to:

• Residents of Sri Lanka
• For the purpose of foreign travel, not exceeding USD 5,000 or its equivalent in other convertible foreign currencies per person and per travel.
• This is carried out upon obtaining the necessary documentary evidence to satisfy the bona fide nature of the request, together with the mandatory endorsement on the passport and/or other relevant entries, in accordance with the instructions issued by the Central Bank of Sri Lanka.

4.  What are the eligible categories for granting a money changing permit?

 Category A: Companies that exclusively engage in money changing business

1. Category B: Entities regulated by Central Bank of Sri Lanka other than Authorized Dealers. (i.e. Licensed Specialized Banks (LSBs) and Licensed Finance Companies (LFCs))
2. Category C: Hotels with a classification of 4 stars or higher.
3. Category D: Other entities (e.g. retail chains)

5. What the eligibility criteria and application procedure relating to money changing business?

The eligibility criteria and application procedure to become an Authorized Money Changer (AMC) for engaging in the money changing business, together with the comprehensive operational guidelines, are available on the official website of the Department of Foreign Exchange.

Accessible at the eligibility criteria and the application procedure

Directions and Comprehensive set of operational guidelines

6.  What are the applicable legal provisions related to the money changing business?

• Foreign Exchange Act, No. 12 of 2017
• Directions No. 01 of 2025 issued to Restricted Dealers who are engaged in money-changing business, dated 10.03.2025.