INSUBCONTINENT EXCLUSIVE:
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
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
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.
