• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
RECENT RELAXATIONS OF EXCHANGE CONTROL REGULATIONS
 

RECENT RELAXATIONS OF EXCHANGE CONTROL REGULATIONS

on

  • 7,082 views

 

Statistics

Views

Total Views
7,082
Views on SlideShare
6,769
Embed Views
313

Actions

Likes
1
Downloads
92
Comments
0

6 Embeds 313

http://www.combank.net 146
http://192.168.2.189 83
http://www.combank.lk 41
http://localhost 39
http://192.168.116.236 2
http://ramadha 2

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    RECENT RELAXATIONS OF EXCHANGE CONTROL REGULATIONS RECENT RELAXATIONS OF EXCHANGE CONTROL REGULATIONS Presentation Transcript

    • RECENT RELAXATIONS OF EXCHANGE CONTROL REGULATIONS COMMERCIAL BANK OF CEYLON PLC
    • HOW THE EXCHANGE CONTROL REGIME HAS EVALUATED IN SRI LANKA 02 COMMERCIAL BANK OF CEYLON PLC
      • 1950 -subject to a minimum degree of control
      • 1960 -the intensity of the degree of control was progressively increased
      • 1977 -controls were relaxed to a greater extent
      • 1994 -With the acceptance of obligations under article VIII of the IMF articles of agreement all restrictions under current international transactions were removed.
      • 2010 -Liberalization of capital account
    • 03 COMMERCIAL BANK OF CEYLON PLC
      • Following policy initiatives were announced by the Central Bank of Sri Lanka (CBSL), with a view to encourage both local and foreign entities to enhance their business activities. These were implemented in three phases
      • Implemented w.e.f 11 th March 2010
      • Implemented w.e.f 22 nd Nevember 2010
      • Implemented w.e.f 1 st January 2011
      RECENT POLICY INITIATIVES
    • A) POLICIES IMPLEMENTED W.E.F 11 TH MARCH 2010 04 COMMERCIAL BANK OF CEYLON PLC
      • Permission for Sri Lankans (SL) to open and maintain accounts with banks, based outside SL.
      • Removal of restrictions on pre payment of import bills.
      • Removal of margin requirement on selected imports under advance payment terms.
      • Provision of greater flexibility in foreign currency contracts to cover current and capital account transactions.
      • Amalgamation of SIERA, TIERA, TIERA -2 and TIERA-D accounts and renamed as Securities Investment Account (SIA).
      • Permission for International Service Providers and their employees to open and maintain foreign currency accounts (w.e.f 07 th May 2010)
      RECENT POLICY INITIATIVES, AT A GLANCE
    • 05 COMMERCIAL BANK OF CEYLON PLC
      • Permission to foreigners to invest in Rupee Denominated Debentures issued by local companies.
      • Expedition of approvals for SL residents to borrow from foreign sources.
      • Permission for foreign companies to open places of business in Sri Lanka
      • Permission to foreigners on tour or business in Sri Lanka to open accounts in foreign currency
      • Permission to importers of gem and jewellery to open accounts in foreign currency
      • Permission for Diplomatic Missions, their staff and family members in Sri Lanka to do certain banking transactions in foreign currency and Sri Lanka Rupees .
      • Increase of the advance payment limit for imports from USD 10,000 to USD 50,000
      B) POLICIES IMPLEMENTED W.E.F 22 ND NOVEMBER 2010 RECENT POLICY INITIATIVES , AT A GLANCE
    • 06 COMMERCIAL BANK OF CEYLON PLC
      • Permission to SL residents to invest in equity of foreign companies and sovereign bonds.
      • Permission to make payments in respect of setting up of places of business outside SL.
      C) POLICIES IMPLEMENTED W.E.F 1 ST JANUARY 2011 RECENT POLICY INITIATIVES , AT A GLANCE
    • EXCHANGE CONTROL LIBERALIZATIONS ON CAPITAL ACCOUNT TRANSACTIONS 07 COMMERCIAL BANK OF CEYLON PLC DETAILED EXPLANATION
    • 08 COMMERCIAL BANK OF CEYLON PLC
      • Allowing Sri Lankans to invest in equity of overseas companies and Sovereign Bonds issued by Foreign Governments
      • Allowing foreigners to invest in rupee denominated debentures issued by local companies
      • Allowing foreign companies to open places of business in SL
      • Expedition of approvals for companies to borrow from foreign sources
      • Allowing SL companies to open and maintain overseas offices
      EXCHANGE CONTROL LIBERALIZATIONS ON CAPITAL ACCOUNT TRANSACTIONS (SUMMARY)
    • 09 COMMERCIAL BANK OF CEYLON PLC
      • Persons resident in Sri Lanka should obtain prior permission of the Hon. Minister of Finance for making investments abroad (section 17 (2) of the ECA).
      • General Permission is effective from 1 st January 2011 by which permission has been granted for companies and Individuals to invest in shares outside the country subject to certain limits.
      • A new account dedicated for foreign investments namely Outward Investment Account (OIA) (which had discussed earlier) has been introduced under the general permission.
      ALLOWING SRI LANKANS TO INVEST IN EQUITY IN OVERSEAS COMPANIES & SOVEREIGN BONDS ISSUED BY FOREIGN GOVERNMENTS 01 Click here to see details of OIA
    • 10 COMMERCIAL BANK OF CEYLON PLC
      • General permission to any person resident in SL or any company registered under Companies Act, No. 7 of 2007 or any partnership registered in SL, to acquire, hold and transfer shares of companies incorporated outside SL and the sovereign bonds issued by foreign governments and governmental organizations rated on or above the sovereign credit rating for the time being of SL.
      • Permission is not applicable for the following:-
      • Any company limited by guarantee within the meaning of the Companies Act No.7 of 2007;
      • Any non-governmental organization;
      • Any person against whom, or any company or partnership against which legal proceedings are pending in respect of a prosecution made against such person, company or partnership under the provisions of Exchange Control Act.
      ALLOWING SRI LANKANS TO INVEST IN EQUITY IN OVERSEAS COMPANIES & SOVEREIGN BONDS ISSUED BY FOREIGN GOVERNMENTS 01
    • 11 COMMERCIAL BANK OF CEYLON PLC
      • Terms and Conditions:
      • This make outward remittances only out of an Outward Investment Account (OIA) opened in a licensed commercial bank
      • Repatriate within three months from the date of payment, all dividends, capital gains and profits from the sale of shares, liquidation or capital reduction receivable from a foreign company and proceeds of sale and maturity of sovereign bonds, including the capital gains, if any, with the interest earned on such sovereign bonds, credited to the Outward Investment Account through which the initial investment was made;
      • Submit a request to an authorized dealer along with a recommendation from a Fellow Member of the Institute of Chartered Accountants of Sri Lanka who possesses a valid certificate to practice at the time of issue of such recommendation;
      ALLOWING SRI LANKANS TO INVEST IN EQUITY IN OVERSEAS COMPANIES & SOVEREIGN BONDS ISSUED BY FOREIGN GOVERNMENTS 01 Click here to see details of OIA
    • 12 COMMERCIAL BANK OF CEYLON PLC
      • Terms and Conditions cont…:
      • Submit an affidavit stating that no outward remittance has been effected through any other authorized dealer for the same investment and that no application has been forwarded to obtain foreign exchange allowance for the purpose of migration.
      ALLOWING SRI LANKANS TO INVEST IN EQUITY IN OVERSEAS COMPANIES & SOVEREIGN BONDS ISSUED BY FOREIGN GOVERNMENTS 01
    • 13 COMMERCIAL BANK OF CEYLON PLC
      • Limitations:
      • US dollars five hundred thousand (USD 500,000/) or an equivalent amount in any designated foreign currency per annum, in respect of a company listed at the Colombo Stock Exchange;
      • US dollars one hundred thousand (USD 100,000) or an equivalent amount in any designated foreign currency per annum, in respect of a company which is not listed at the Colombo Stock Exchange;
      • US dollars one hundred thousand (USD 100,000) or its equivalent amount in any designated foreign currency, in respect of a partnership registered in SL, subject to providing a tax clearance certificate by each partner to the authorized dealer to cover the amount to be remitted;
      • US dollars one hundred thousand (USD 100,000) or its equivalent amount in any designated foreign currency, in respect of any individual resident in SL, subject to providing a tax clearance certificate to the authorized dealer to cover the amount to be remitted;
      ALLOWING SRI LANKANS TO INVEST IN EQUITY IN OVERSEAS COMPANIES & SOVEREIGN BONDS ISSUED BY FOREIGN GOVERNMENTS 01
    • 14 COMMERCIAL BANK OF CEYLON PLC
      • Limitations cont…:
      • US dollars one hundred thousand (USD 100,000) or its equivalent amount in any designated foreign currency per individual employee of a branch in SL or subsidiary of a company incorporated outside SL, to acquire shares of such company under an Employee Share Option Scheme:
      • Provided however, maximum number of shares that can be acquired by all employees of the branch in SL or of subsidiary shall not exceed five percent(5%) of the value of total shares issued by the company incorporated outside SL;
      • Obtain the prior written approval of the Minister of Finance, prior to make an investment which exceeds the above limitations;
      • Shares under bonus issue and shares received by capitalization of reserves of companies incorporated outside SL, shall also be deemed to have been acquired pursuant to the general permission;
      ALLOWING SRI LANKANS TO INVEST IN EQUITY IN OVERSEAS COMPANIES & SOVEREIGN BONDS ISSUED BY FOREIGN GOVERNMENTS 01
    • 15 COMMERCIAL BANK OF CEYLON PLC General permission for the issue and transfer of convertible or non-convertible, redeemable or non-redeemable debentures denominated in Sri Lankan Rupees in a company classified as a specified business enterprise in terms of the SL Accounting and Auditing Standards Act, No. 15 of 1995, to foreign institutional investors, corporate bodies incorporated outside SL, individuals resident outside SL and Sri Lankans resident outside SL. ALLOWING FOREIGNERS TO INVEST IN RUPEE DENOMINATED DEBENTURES ISSUED BY LOCAL COMPANIES 02
    • 16 COMMERCIAL BANK OF CEYLON PLC
      • Terms and Conditions Applicable to Debentures :
      • All debentures shall be listed in the Colombo Stock Exchange, while issue may be made either by private placement or initial public offer.
      • The period of redemption or conversion to ordinary shares, of the debentures shall not be less than five years and such conversion should be subject to the exclusions and limitations stipulated in the Government Gazette Notification No.1232/14 dated 19 th April 2002 .
      • The debentures issued shall have a current credit rating from a local rating agency or international rating agency acceptable to the Securities and Exchange Commission of SL.
      • The rate of interest on the debentures shall not exceed the five year secondary market Treasury bond rate published by the CBSL plus 200 basis points at the date of issuance of the debentures.
      ALLOWING FOREIGNERS TO INVEST IN RUPEE DENOMINATED DEBENTURES ISSUED BY LOCAL COMPANIES 02
    • 17 COMMERCIAL BANK OF CEYLON PLC
      • Terms and Conditions applicable to the Debenture-Issuing Company:
      • The Board of Directors shall ensure that cash inflows of its business operations are adequate to service the repayment of interest payments on the debentures, so as to prevent any material liquidity risk to the company.
      • The Board of Directors shall establish a risk management process that ensures the company addresses the possible risks arising from the foreign investment in the debentures of the company and/or the contagion risk of any default and the other risks to the company in the case of such an eventuality.
      • - the company shall make appropriate sinking fund arrangements for the orderly repayment of debentures on the maturity date and these arrangements shall be reviewed by the company’s auditors.
      ALLOWING FOREIGNERS TO INVEST IN RUPEE DENOMINATED DEBENTURES ISSUED BY LOCAL COMPANIES 02
    • 18 COMMERCIAL BANK OF CEYLON PLC
      • Terms and Conditions applicable to the Debenture-Issuing Company cont…:
      • - funds for the investment in debentures and the payment for debentures by the non-resident investor shall be made only out of funds received as inward remittances through a “Securities Investment Account” (SIA), or funds available to the credit of a SIA of the foreign investor, opened and maintained in a licensed commercial bank in SL in accordance with directions given by the Controller of Exchange.
      • the company shall furnish a report to the Exchange Control Department within 30 days of receipt of remittances for investment in debentures providing the following details:-
      • The total amount received through SIAs.
      • The names and addresses of the Authorized Dealers through whom the remittances were received.
      • A certificate from the Company Secretary confirming that the provisions of the Exchange Control Act and the directions issued under the Act with regard to the issuance of debentures have been duly complied with .
      ALLOWING FOREIGNERS TO INVEST IN RUPEE DENOMINATED DEBENTURES ISSUED BY LOCAL COMPANIES 02
    • 19 COMMERCIAL BANK OF CEYLON PLC Permission has been granted by Gazette Extraordinary No.1681/10 dated 22.11.2010 for companies incorporated outside SL and registered as overseas companies under Companies Act No. 07 of 2007 to carry on business in SL through a place of business such as Branch, Project, Liaison, Representative Office or similar office. OPENING OF PLACES OF BUSINESSES IN SRI LANKA 03
    • 20 COMMERCIAL BANK OF CEYLON PLC
      • Activities which may be carried on by an overseas company :
      • Type A: Any commercial, trading, or industrial activity other than those specified in Schedule I , provided prior permission has been obtained from the Controller of Exchange for any such activity specified in Schedule II .
      • Type B: Any non-commercial, non-trading or non-industrial activity such as the activities undertaken or carried on by a liaison office, representative office, regional office or other similar office, provided such activities do not provide any income directly or indirectly to the company.
      OPENING OF PLACES OF BUSINESSES IN SRI LANKA 03
    • 21 COMMERCIAL BANK OF CEYLON PLC
      • Schedule I :
      • Commercial, trading or industrial activities that are not permitted for overseas companies:
      • Money lending
      • Pawn broking
      • Retail trade with a capital of less than two million US dollars
      • Coastal fishing
      • Growing and primary processing of tea, rubber, coconut and rice
      • Mining and primary processing of non-renewable national resources
      • Freight Forwarding
      • Shipping agency business
      • Mechanized mining of gems
      • Lotteries
      OPENING OF PLACES OF BUSINESSES IN SRI LANKA 03 Back to Slide 20
    • 22 COMMERCIAL BANK OF CEYLON PLC
      • Schedule II :
      • Activities which require the prior permission of the Controller of Exchange :
      • Production of goods where Sri Lanka’s exports are subject to internationally determined quota restrictions
      • Growing and primary processing of sugar, cocoa and spices
      • Timber based industries using local timber
      • Deep sea fishing
      • Mass communication
      • Education
      • Outbound travel agency business
      OPENING OF PLACES OF BUSINESSES IN SRI LANKA 03
    • 23 COMMERCIAL BANK OF CEYLON PLC Schedule II : Activities which require the prior permission of the Controller of Exchange cont….: Local air transportation Coastal shipping Any industry manufacturing or producing: – Arms, ammunitions, explosives, military vehicles and equipment, aircraft and other military hardware – Poisons, narcotics, alcohols, dangerous drugs and toxic, hazardous or carcinogenic materials – Currency, coins or security documents OPENING OF PLACES OF BUSINESSES IN SRI LANKA 03 Back to Slide 20
    • 24 COMMERCIAL BANK OF CEYLON PLC
      • Inward Investment Account (IIA)
      • IIA may be initially opened in the name of the parent company incorporated outside SL on production of certified copies of the Certificate of Incorporation and Memorandum and Articles of Association of the said company.
      • After the said parent company is registered as an overseas company in SL by the Registrar General of Companies, the account shall be re-designated in the name of the company registered in SL, upon submission of a certified copy of the Certificate of Registration.
      OPENING OF PLACES OF BUSINESSES IN SRI LANKA 03 Click here to see details of IIA
    • 25 COMMERCIAL BANK OF CEYLON PLC
      • Financing of the Activities of Overseas Company :
      • For Type A:
      • Invest a minimum of United States Dollars (USD) 200,000 or equivalent amount in other designated foreign currencies, out of remittances received from abroad and channeled through IIA.
      • Provide evidence of remittance of a minimum total of USD 200,000 or equivalent amount in other designated foreign currencies, to the Registrar of Companies, within 30 days of registration; and
      • Record the funds remitted as above in the Company’s books as an investment and maintain such record in the company until the company ceases its business in SL.
      OPENING OF PLACES OF BUSINESSES IN SRI LANKA 03
    • 26 COMMERCIAL BANK OF CEYLON PLC
      • Financing of the Activities of Overseas Company :
      • For Type B:
      • Shall remit the funds required for the maintenance of such place of business from abroad in designated foreign currency via IIA.
      OPENING OF PLACES OF BUSINESSES IN SRI LANKA 03
    • 27 COMMERCIAL BANK OF CEYLON PLC Foreign Borrowings require prior approval of the CBSL in terms of the provisions of section 5 of the ECA. New Policy to be effective from 22 nd November 2010. Procedure: Request to be forwarded to ECD Permission to be granted by the Controller of Exchange Maximum amount to be borrowed: USD 20 million at any given time. EXPEDITION OF APPROVALS FOR COMPANIES TO BORROW FROM FOREIGN SOURCES 04
    • 28 COMMERCIAL BANK OF CEYLON PLC
      • Permitted borrowers :
      • Companies engaged in the following businesses will be permitted to borrow in foreign exchange subject to the condition that repayments should be made out of the foreign exchange earnings of the company.
      • Merchandise exporters registered with the Export Development Board
      • Tourism
      • Tourists Entertainment Centres
      • Gem and Jewellery
      • Food Processing
      • Shipping
      • Domestic Air Travel
      EXPEDITION OF APPROVALS FOR COMPANIES TO BORROW FROM FOREIGN SOURCES 04
    • 29 COMMERCIAL BANK OF CEYLON PLC
      • Permitted borrowers cont….. :
      • Companies engaged in the following businesses will be permitted to borrow in foreign exchange irrespective of the capacity to repay the loans out of the foreign exchange earnings of the company.
      • Agriculture, Livestock and Plantation
      • Fisheries
      • Food Processing
      • Education and training
      • Power generation and transmission
      • Research and Development
      • Hospitals and Provision of Health and Health care Services
      • Commercial Housing Construction
      EXPEDITION OF APPROVALS FOR COMPANIES TO BORROW FROM FOREIGN SOURCES 04
    • 30 COMMERCIAL BANK OF CEYLON PLC
      • Permitted borrowers cont….. :
      • Construction of Roads and Bridges
      • Mass Transportation
      • Environmental Protection
      • Departmental Stores
      • Vehicle Assembling
      • Ports & Ancillary Services
      • Industrial Parks
      • Urban Infrastructure (water supply, sanitation and sewage projects)
      • IT Service Providers
      • Heavy Industries and Manufacturing
      EXPEDITION OF APPROVALS FOR COMPANIES TO BORROW FROM FOREIGN SOURCES 04
    • 31 COMMERCIAL BANK OF CEYLON PLC
      • Permitted borrowers cont….. :
      • Sole proprietorships in the following businesses will be permitted to borrow in foreign exchange irrespective of the capacity to repay the loans out of the foreign exchange earnings of the proprietorship.
      • Consultancy Services
      • Handicrafts manufacturers registered with the Government Authorities
      • Advertising, Publishing, Photography
      • Services related to sports
      • Fashion Modeling and Film industry
      • Entertainment Industry (Music, Dancing Event Management etc.)
      EXPEDITION OF APPROVALS FOR COMPANIES TO BORROW FROM FOREIGN SOURCES 04
    • 32 COMMERCIAL BANK OF CEYLON PLC
      • Permitted lenders:
      • International banks or Finance Institutions
      • Multilateral financial institutions
      • Foreign shareholders or parent companies of the borrowing companies
      • Export credit agencies
      • Individual lenders: subject to furnishing of a confirmation from the banker of his/her country of residence that he/she had been maintaining an account with the said bank at least for a period of one year prior to the date of lending along with evidence that he/she is a tax payer in the country of residence;
      EXPEDITION OF APPROVALS FOR COMPANIES TO BORROW FROM FOREIGN SOURCES 04
    • 33 COMMERCIAL BANK OF CEYLON PLC Repayment period: shall be at least three years from the date of receipt of the loan proceeds; Cost of Borrowing: All costs including fees, charges and interest applicable for the loans shall not exceed the prevailing Sri Lanka’s International Sovereign Bond rate in the secondary market + 200 basis points; EXPEDITION OF APPROVALS FOR COMPANIES TO BORROW FROM FOREIGN SOURCES 04
    • 34 COMMERCIAL BANK OF CEYLON PLC
      • Conditions governing the receipt and utilization of the loan proceeds:
      • Loan proceeds shall be used only for the purpose of working capital, investment in the business of the borrower, restructure the company or settle existing foreign currency loans.
      • Entire loan proceeds must be remitted into SL.
      • If any part of the proceeds of the loans are to be used for any overseas investment, such proceeds shall first be credited to an Outward Investment Account opened at a licensed commercial bank according to the current guidelines issued by the Controller of Exchange.
      • In the case of a borrowing by a sole proprietorship, such business should have had a satisfactory banking relationship with a commercial bank in SL for the last three years, and should have also paid its taxes during the same period, if not exempted from payment of tax.
      EXPEDITION OF APPROVALS FOR COMPANIES TO BORROW FROM FOREIGN SOURCES 04
    • COMMERCIAL BANK OF CEYLON PLC
      • Information required to be furnished:
      • Application Form in the manner prescribed by the Controller of Exchange;
      • A statement cum analysis of the business performance of the applicant during the past five years;
      • Statement of purpose of the loan with projected repayment, cash flows;
      • Audited accounts for the last two years;
      • Terms and conditions agreed or proposed regarding the loan;
      • Business profile of the lender; and
      • Tax clearance certificate in the case of sole proprietorships.
      EXPEDITION OF APPROVALS FOR COMPANIES TO BORROW FROM FOREIGN SOURCES 04 35
    • 36 COMMERCIAL BANK OF CEYLON PLC
      • General Permission to any company registered under Companies Act, No.7 of 2007 or any partnership registered in SL, to make payments to persons resident outside Sri Lanka where the same is required for the purpose of setting up and maintaining any Branch, Liaison, Agency, Project or Representative Offices (“overseas offices”).
      • Permission is not applicable for the following:
      • Any company limited by guarantee within the meaning of the Companies Act No. 7 of 2007;
      • Any non-governmental organization;
      • Any company or partnership against which legal proceedings are pending in respect of a prosecution made against such company or partnership under the provisions of Exchange Control Act (Chapter 423);
      ALLOWING SRI LANKAN COMPANIES TO OPEN AND MAINTAIN OVERSEAS OFFICES 05
    • 37 COMMERCIAL BANK OF CEYLON PLC
      • Terms and Conditions:
      • A request should be submitted to an authorized dealer along with a feasibility report on setting up of a place of business outside SL, recommended by a Fellow Member of the Institute of Chartered Accountants of Sri Lanka who possesses a valid certificate to practice at the time of issue of such recommendation;
      • Make all outward remittances only out of an OIA
      • Repatriate within three months from the date of payment, all profits, margins and surplus funds from the overseas offices to SL only through the OIA through which the initial investment was made;
      ALLOWING SRI LANKAN COMPANIES TO OPEN AND MAINTAIN OVERSEAS OFFICES 05
    • 38 COMMERCIAL BANK OF CEYLON PLC
      • Terms and Conditions cont…:
      • Submit with every request an affidavit stating that no outward remittance has been effected through any other authorized dealers for the purpose stated herein;
      • Submit all relevant information and documents required by the authorized dealer in accordance with the guidelines issued by the Controller of Exchange
      ALLOWING SRI LANKAN COMPANIES TO OPEN AND MAINTAIN OVERSEAS OFFICES 05
    • 39 COMMERCIAL BANK OF CEYLON PLC
      • Limitations:
      • All payments shall not exceed US Dollars one hundred thousand (USD100,000) or its equivalent amount in any designated foreign currency:
      • However, prior permission of the Controller of Exchange shall be obtained, if any payment exceeds the above limitation.
      ALLOWING SRI LANKAN COMPANIES TO OPEN AND MAINTAIN OVERSEAS OFFICES 05
    • NEW FOREIGN CURRENCY / RUPPE ACCOUNTS 40 COMMERCIAL BANK OF CEYLON PLC
    • SECURITIES INVESTMENT ACCOUNT(SIA) 41 COMMERCIAL BANK OF CEYLON PLC
      • Share Investment External Rupee Accounts (SIERA), Treasury bond Investment External Rupee Accounts (TIERA), Treasury bill Investment External Rupee Accounts (TIERA 2) and Treasury bonds/bills Investment External Rupee Accounts- Deshabhimani (T IERA-D) have been renamed as Securities Investment Accounts( SIA) with effect from 11/03/2010
      • Eligible Investors :
      • Foreign Institutional Investors.
      • Corporate bodies incorporated outside Sri Lanka.
      • Citizens of foreign states whether citizens SL or outside SL.
      • Non-resident Sri Lankans.
      • Dual citizens who receive inward remittances.
    • SECURITIES INVESTMENT ACCOUNT(SIA) 42 COMMERCIAL BANK OF CEYLON PLC
      • Permitted Credits:
      • Inward remittances received through banking system.
      • Transfer of funds from NRFC/FCBU/RNNFC accounts of the same account holder.
      • Sale proceeds realized out of sale or transfer or maturity of T-bonds/T-bills or any capital gain thereof.
      • Sale proceeds of shares and dividends.
      • Proceeds realized out of sale or transfer or maturity of debentures.
      • Interest accrued on debentures.
      • Commissions relating to share transactions.
      • Liquidation proceeds of companies.
      • Interest received on T-bonds.
    • SECURITIES INVESTMENT ACCOUNT(SIA) 43 COMMERCIAL BANK OF CEYLON PLC
      • Permitted Debits:
      • Payments for investment in shares/T-bonds/T-bills/debentures.
      • Outward remittances of sale/redemption/maturity or liquidation proceeds of shares/units/T-bonds/T-bills & dividends of shares or units.
      • Payment to brokers, primary dealers, lead managers and bank charges.
      • Payment for local expenses.
      • Transfer of funds to the accounts maintained by the account holder at FCBU.
      • Transfer of funds between SIA of the same account holder.
      Back to Slide 18
    • PERMISSION FOR SRI LANKANS TO OPEN AND MAINTAIN ACCOUNTS WITH BANKS ABROAD 44 COMMERCIAL BANK OF CEYLON PLC
      • Eligible Persons :
      • Residents proceeded temporary outside SL for business, studies or medical purposes.
      • Individual/company/firm who provide professional/vocational services outside Sri Lanka.
      • Individual/company/firm permitted by the Minister of Finance to invest outside Sri Lanka.
      • Individual/company/firm permitted by the CBSL to lend foreign currency abroad.
      • Exporters of merchandise goods.
    • PERMISSION FOR SRI LANKANS TO OPEN AND MAINTAIN ACCOUNTS WITH BANKS ABROAD 45 COMMERCIAL BANK OF CEYLON PLC
      • Credits:
      • Foreign currency received legally outside SL or obtained from an authorized dealer/person in SL.
      • Debits:
      • Funds may be utilized towards any foreign exchange transaction permissible for a resident person.
      • Closing of accounts:
      • Balance shall be repatriated to SL through banking channels, within a month of such closure of accounts.
    • NON RESIDENT NON NATIONAL FOREIGN CURRENCY ACCOUNT (NRNNFA) 46 COMMERCIAL BANK OF CEYLON PLC
      • CBSL has given the permission to foreigners on tour or business in SL to open NRNNFA accounts in the Domestic Banking Unit (DBU) in designated foreign currencies.
      • Eligible Persons:
      • Non –nationals either on temporary visit to SL or intending to visit SL.
      • Type of Accounts:
      • The accounts may be opened only in the form of current or savings accounts.
    • NON RESIDENT NON NATIONAL FOREIGN CURRENCY ACCOUNT (NRNNFA) 47 COMMERCIAL BANK OF CEYLON PLC
      • Permitted Credits:
      • Inward remittances received infavour of the account holder.
      • Foreign currency in the form of traveler's cheques, bank draft or designated foreign currency notes brought into the country on declaration to SL Customs.
      • Interest accrued on the funds held in the account.
      • Transfers from FCBU account of the account holder or the company on whose behalf temporary visit to SL is undertaken.
    • NON RESIDENT NON NATIONAL FOREIGN CURRENCY ACCOUNT (NRNNFA) 48 COMMERCIAL BANK OF CEYLON PLC
      • Permitted Debit:
      • Withdrawals in Sri Lanka Rupees for local disbursements.
      • Withdrawals in foreign currency.
      • Outward remittances.
    • FOREIGN CURRENCY ACCOUNTS FOR GEM & JEWELLERY DEALERS 49 COMMERCIAL BANK OF CEYLON PLC
      • Permission has been granted to extend the foreign currency account facilities available to direct and indirect exporters of gem and/or jewellery to importers of gem and/or jewellery. Minimum balance of accounts should be USD 1,000.
      • Eligible Persons:
      • Individuals, firms & companies engage in:-
      • Export of gem and/or jewellery
      • Import of gem and/or jewellery
      • Supply of finished or unfinished gem and/or jewellery to exporters
      • Type of Accounts:
      • Non-chequeable, savings or fixed deposit account
    • FOREIGN CURRENCY ACCOUNTS FOR GEM & JEWELLERY DEALERS 50 COMMERCIAL BANK OF CEYLON PLC
      • Opening of Accounts:
      • Certificate should be obtained from National Gem and Jewellery Authority
      • Permitted Credits:
      • Export proceeds from gems and/or jewellery
      • Proceeds of gem and/or jewellery sold abroad & brought into the country
      • Local receipts in foreign exchange by importers of gem and/or jewellery in respect of supply of raw materials to indirect/direct exporters
      • Local receipts in foreign exchange indirect exporters of gem and/or jewellery in respect of supply of raw materials to direct exporters
      • Interest
    • FOREIGN CURRENCY ACCOUNTS FOR GEM & JEWELLERY DEALERS 51 COMMERCIAL BANK OF CEYLON PLC
      • Permitted Debits:
      • Payments in foreign exchange for import of cut and polished or rough gem stones and other raw materials.
      • Withdrawals in foreign currency notes not exceeding USD 50,000 for purchasing cut and polished or rough gem stones and other raw materials abroad.
      • Withdrawals in Sri Lanka Rupees.
      • Payments in foreign currency to a local supplier in the form of bank transfer or bank draft.
    • FOREIGN CURRENCY & RUPEE ACCOUNTS FOR FOREIGN DIPLOMATIC MISSIONS, DIPLOMATIC PERSONNEL AND THEIR FAMILY MEMBERS IN SL 52 COMMERCIAL BANK OF CEYLON PLC
      • Eligible Persons:
      • Foreign diplomatic missions, Diplomatic personnel & their family members in SL.
      • Type of Accounts:
      • Current, savings or term deposit accounts
      • Joint accounts on behalf of diplomatic personnel & their family members.
      • Transfer of funds between one DFA to another DFA and between one DRA to another DRA may be made.
      • Transfer of funds between one DFA to FCBU account of the account holder or between one DFA to a FCBU account of the Diplomatic Mission may be made.
    • DIPLOMATIC RUPEE ACCOUNT (DRA) 53 COMMERCIAL BANK OF CEYLON PLC
      • Credits to DRA :
      • Transfers from DFA accounts converted to Rupees
      • Interest
      • Refunds, reimbursements and payments due to the account holder from any person or institution in SL.
      • Debits to DRA :
      • Local expenses of the account holder.
      • Any transaction approved by the Ministry of Foreign Affairs.
      • Remittance outside SL with the approval of CE.
      FOREIGN CURRENCY & RUPEE ACCOUNTS FOR FOREIGN DIPLOMATIC MISSIONS, DIPLOMATIC PERSONNEL AND THEIR FAMILY MEMBERS IN SL
    • DIPLOMATIC FOREIGN CURRENCY ACCOUNT (DFA) 54 COMMERCIAL BANK OF CEYLON PLC
      • Credits to DFA :
      • Proceeds of inward remittances
      • Designated foreign currency brought into the country by the account holder on declaration to SL customs.
      • Interest
      • Debits to DFA :
      • Repatriation outside SL
      • Withdrawal in foreign currency or in rupees for local expenses
      • Transfer to DRA accounts converted into Rupee
      FOREIGN CURRENCY & RUPEE ACCOUNTS FOR FOREIGN DIPLOMATIC MISSIONS, DIPLOMATIC PERSONNEL AND THEIR FAMILY MEMBERS IN SL
    • 55 COMMERCIAL BANK OF CEYLON PLC
      • Guidelines:
      • This account may be initially opened in the name of the parent company
      • After registering the parent company as an overseas company account shall be re-designated in the name of the company registered in SL.
      • Credits:
      • Rupee proceeds of inward remittances
      • Local revenue of overseas company
      • Debits:
      • Profit, Royalty, Franchise or other similar payments or surplus funds subject to the submission of the documents specified in paragraph 3 of the Gazette No 1681/10 of 22.11.10 .
      • Local expenses of the overseas company
      INWARD INVESTMENT ACCOUNT (IIA) Back to Slide 24
    • 56 COMMERCIAL BANK OF CEYLON PLC
      • Permitted investments:
      • Investments in shares of foreign companies, sovereign bonds.
      • Payments towards setting up and maintenance of overseas offices.
      • Eligible persons:
      • Companies incorporated in terms of Companies Act.
      • Partnerships registered with the local government authorities.
      • Individuals resident in SL.
      OUTWARD INVESTMENT ACCOUNT (OIA)
    • 57 COMMERCIAL BANK OF CEYLON PLC
      • Credits to OIA:
      • Rupee proceeds converted into foreign currency, up to the investment requirement and subject to the stipulations set out in the Gazette.
      • Transfers from foreign currency accounts (except special foreign currency accounts) of the same person.
      • Profits, margins ,surplus funds and proceeds realized by closure of an overseas offices
      • Inward remittances received as dividend payments
      • Inward remittances as management fees, consultancy fees, and commissions related to the investments made through this account.
      • Inward remittances received as sale proceeds of shares (Including capital gains and liquidation proceeds)
      • Proceeds of sale and maturity of sovereign bonds
      • Interest
      OUTWARD INVESTMENT ACCOUNT (OIA)
    • 58 COMMERCIAL BANK OF CEYLON PLC
      • Debits to OIA:
      • Payments for acquisition of shares and sovereign bonds.
      • Setting up & maintenance costs for Branch, Liaison, marketing, Representative, Project & Agency offices.
      • Bank charges, broker fees, commissions related to the investments
      • Withdrawals in LKR
      OUTWARD INVESTMENT ACCOUNT (OIA) Back to Slide 11 Back to Slide 34 Back to Slide 09
    • 59 COMMERCIAL BANK OF CEYLON PLC
      • Eligible Service Providers:
      • Any resident company or partnership registered in SL or any individual resident in SL rendering services while based in Sri Lanka to non-residents in the course of carrying on any profession or occupation specified in the direction.
      • Individuals employed by the said eligible service providers.
      FOREIGN CURRENCY ACCOUNTS FOR INTERNATIONAL SERVICE PROVIDERS AND THEIR EMPLOYEES (FCAISPE)
    • 60 COMMERCIAL BANK OF CEYLON PLC Opening of Accounts: In the form of current, savings or term deposits in designated foreign currency upon submission of, Employer A letter from the commissioner General of Inland Revenue confirming that the employer is qualified for income tax exemptions. Employee A letter from an employer that the employee is directly involved in projects carried out by the employer & is paid for his services in foreign currency. FOREIGN CURRENCY ACCOUNTS FOR INTERNATIONAL SERVICE PROVIDERS AND THEIR EMPLOYEES (FCAISPE)
    • 61 COMMERCIAL BANK OF CEYLON PLC
      • Permitted Credits:
      • Proceeds on international services.
      • Employment income paid out of foreign currency received by an employer for exempt projects.
      • Interest accruing on the funds held in the account.
      • Permitted Debits:
      • Payments in foreign currency to employees directly involved in exempt projects.
      • Payments in foreign currency outside SL for transactions permitted to residents in SL.
      • Withdrawal in rupees
      FOREIGN CURRENCY ACCOUNTS FOR INTERNATIONAL SERVICE PROVIDERS AND THEIR EMPLOYEES (FCAISPE)