The Central Financial institution of Sri Lanka (CBSL) has issued a powerful advisory to the general public, warning towards unauthorized abroad property investments and deceptive commercials selling such ventures. The assertion is available in response to a rising variety of commercials each in print and on social media that encourage Sri Lankan residents to spend money on immovable properties overseas, usually with strategies for acquiring international loans.
In accordance with the International Alternate Act No. 12 of 2017 (FEA), CBSL clarified the next key factors:
- Resident people should not permitted to make funds for abroad property investments until such funds are made by means of Private International Forex Accounts (PFCAs), with a most annual restrict of USD 20,000 (or equal).
- Funds from Enterprise International Forex Accounts (BFCAs) by resident entities or people for these investments are strictly prohibited.
- Residents should not allowed to acquire international loans or elevate exterior financing from non-residents for any function, together with property purchases overseas.
The Central Financial institution strongly suggested the general public to not be misled by commercials that promote these investments or provide international financing options, warning that authorized motion can be taken beneath the FEA towards these partaking in or facilitating unauthorized international change transactions. (CBSL, 2025)
How one can Guarantee Your International Remittances Are Authorized and Compliant?
To keep away from violations and penalties, Sri Lankans are urged to:
1. Use Licensed Sellers
All international change transactions have to be performed solely by means of banks or monetary establishments which are duly licensed by the Central Financial institution of Sri Lanka (CBSL) to deal with such operations.
2. Declare the Goal Clearly
All the time present correct causes for any international transaction when sending or receiving funds.
3. Acquire CBSL Approval The place Essential
Investments exceeding permitted thresholds or exterior allowable classes require prior CBSL approval.
4. Keep Documentation
Preserve data reminiscent of financial institution slips, approval letters, and agreements to show the legitimacy of your transaction.
5. Adhere to the Annual International Alternate Limits
For Private International Investments, keep inside the annual restrict of USD 20,000 by way of PFCAs until formally permitted.
(In accordance with the rules issued by the Central Financial institution of Sri Lanka, buying abroad property is principally permitted for people who’ve a international earnings supply. These people can use their Private International Forex Accounts (PFCAs) to take a position overseas, as much as an annual restrict of USD 20,000.
Nevertheless, these with no international income move should not allowed to make use of Sri Lankan Rupees (LKR) to purchase property abroad. This regulation is meant to stop the outflow of LKR from the nation and defend Sri Lanka’s international change reserves)
6. Keep away from Casual Channels
Don’t use unlawful remittance networks like hawala or undi methods, as they’re unregulated and prosecutable beneath the FEA.
7. Seek the advice of Professionals
Communicate together with your financial institution’s international change division or a licensed monetary guide to make sure regulatory compliance.
