The Central Bank of Sri Lanka (CBSL) encourages the general public not to be misguided by advertisements released in the print and social networks, which promote overseas residential or commercial property financial investments, and likewise providing guidance on acquiring foreign funding for such purposes.Issuing a statement today, the CBSL said it has just recently observed advertisements published in the print and social media that promote abroad investments in immoveable residential or commercial properties (overseas residential or commercial property investments) amongst Sri Lankan resident individuals.
Such advertisements likewise offer assistance on getting foreign financing for such financial investments, it said.In the declaration, the CBSL draws the attention of the general public to the following, in regards to Regulations and Orders provided under the Foreign Exchange Act, No.
12 of 2017 (FEA): Resident individuals are not allowed to make payments to obtain or buy overseas properties except where payments for such financial investments are made from the Personal Foreign Currency Accounts (PFCAs) up to the limitation of USD 20,000 or equivalent in any other designated foreign currency.
Payments for abroad home financial investments from Business Foreign Currency Accounts (BFCAs) kept by resident entities/individuals are not permitted.
Even more, resident people are not allowed to acquire foreign loans or raise financing from nonresidents for any function, consisting of overseas home investments.In the above scenarios, CBSL highly encourages the public not to be misled by such advertisements published in the print and social media, which promote abroad residential or commercial property investments, and likewise providing guidance on obtaining foreign financing for such functions, the declaration said.The reserve bank further said that legal action shall be initiated under FEA against anybody involved in or facilitating such unauthorised forex transactions.