Special Foreign Investment Deposit Accounts - SFIDA
Now foreign citizens/institutions and Sri Lankans resident overseas can invest in Sri Lanka and earn best returns on your foreign currency with a Special Foreign Investment Deposit Account, SFIDA.
You have the option of maintaining your SFIDA account in a designated foreign currency and earn a higher interest than what you could earn in most other Financial Centres, or maintaining your SFIDA account in Sri Lankan Rupees (LKR) and get a much higher return of app. 8 to 10pct.
All SFIDA accounts are exempted from Income Tax, Withholding Tax, Debit Tax and other levies. At maturity, your capital and interest can be converted to any of the designated currencies of your choice at the prevailing exchange rate and repatriated without any exchange control restrictions.
SFIDA accounts range from one month to 12 months, and the interest rate applicable will vary depending on the prevailing market rate.
Eligible Investors to Open an SFIDA Account
• Citizens of foreign states
• Sri Lanka citizens resident outside Sri Lanka
• Corporate bodies incorporated outside Sri Lanka
• Foreign institutional investors (eg. Country funds, mutual funds, regional funds)
• Note: Joint accounts held by two or more eligible investors are also allowed
Type of SFIDA Accounts
• Savings Deposits in designated Foreign Currencies or in Sri Lankan Rupees
• Time Deposits in designated Foreign Currencies or in Sri Lankan Rupees
Permitted Currencies
Investment can be maintained in a Sri Lanka Rupee account or a foreign currency account (US Dollar, Sterling Pound, Euro, Australian Dollar, Canadian Dollar, Hong Kong Dollar, Singapore Dollar, Japanese Yen, Swedish Kronar, Swiss Francs or any other type of designated foreign currency).
Minimum Investment and Minimum Account Balance
US$ 10,000/= or its equivalent in any of the designated foreign currencies or equivalent amount of Sri Lanka Rupees.
Tax Exemption
All SFIDA accounts are exempted from Income Tax, Withholding Tax, Debit Tax and other levies.
Rate of Interest - General Guidelines
• For Sri Lanka Rupee accounts prevalent interest rates stipulated in the Treasury Notice.
• For foreign currency deposits prevalent interest rates applicable to NRFC accounts of the relevant bank.
• Note: For larger deposits, interest rates could generally be negotiated.
Permitted Credits
• Proceeds of inward remittances received from abroad through banking system.
• Foreign currency in the form of travellers' cheques, bank drafts or bank notes brought in to the country by the account holder on the declaration to Sri Lanka customs as applicable during his temporary visits to Sri Lanka and tendered in person to the Authorised Dealer, provided that the travellers' cheques have been issued outside Sri Lanka and the bank drafts endorsed in the name of the account holder.
• Interest accruing on the funds held in the account.
Permitted Debits
• Outward remittances
• Transfers to other SFIDA accounts
• Disbursements of the account holder in Sri Lanka
• Relevant statutory payments such as debit tax
Additional Information
• Sri Lankan Banks offering SFIDA Accounts
• Commercial Bank, Sri Lanka offers SFIDA Accounts for Foreign and Sri Lankan Investors
Related Info :
• Securities Investment Accounts (SIA) Replace SIERA & TIERA Accounts - For Investment in Sri Lankan Equity, Debt and Unit Trusts
• Sri Lanka Offers Special Visas to Investors, Professionals & Senior Citizens
Showing posts with label SFIDA. Show all posts
Showing posts with label SFIDA. Show all posts
13 May 2010
25 March 2010
Commercial Bank in Sri Lanka Offers SFIDA, Foreign Investment Deposit Accounts for Foreign and Sri Lankan Investors
23rd July 2008, www.dailynews.lk
Sri Lanka's benchmark priv
ate bank to accept deposits from foreigners and Sri Lankan expatriates. The Commercial Bank of Ceylon has become one of the first Sri Lankan banks to open its vaults to foreigners, enabling them to open bank accounts following the Central Bank's decision to further liberalize rules on local banks accepting deposits from persons resident outside Sri Lanka.
Special Foreign Investment Deposit Accounts (SFIDA) can be opened in designated Foreign Currencies and Sri Lankan Rupees. SFIDA Deposits are offered in a variety of investment tenures to suit the requirements of each customer.
Citizens of foreign states, Sri Lankan citizens resident outside Sri Lanka, corporate bodies incorporated outside Sri Lanka and foreign institutional investors such as country funds, mutual funds and regional funds can now open SFIDAs with Commercial Bank.
"Through Sri Lanka's largest private sector bank, we would like to provide great investment opportunities to overseas clients and at the same time help the country attract Foreign Funds for its' development activities. Investors would have the comfort of dealing with the Bank enjoying the highest Credit Rating among all the local private banks." Commercial Bank's Chief Operating Officer Ravi Dias said in a statement.
The Minimum Initial Deposit required to open a SFIDA is US$ 10,000 or its equivalent in other designated Foreign Currencies or Sri Lankan Rupees. All SFIDA accounts are exempted from Income Tax, Withholding of Income Tax and Debit Tax. Foreign Currency will be accepted in the form of Travellers' Cheques, Bank Drafts or Currency Notes brought into the country by the account holder on declaration to Sri Lanka Customs as applicable during his / her temporary visits to Sri Lanka. Outward remittances, transfers to other SFIDAs, disbursements of the account holder in Sri Lanka are possible.
Established in 1969, Commercial Bank is Sri Lanka's leading bank, with dominant positions in consumer banking, treasury and securities markets. The Bank owns a network of 166 computer-linked branches, supermarket banking outlets and service centres and 317 ATMs in Sri Lanka while its operations in Bangladesh have grown to nine branches.
The Bank has been adjudged Sri Lanka's 'Bank of the Year' six times by 'The Banker,' a top notch global banking magazine and also been rated the 'Best Bank in Sri Lanka' for ten consecutive years by the US based 'Global Finance' magazine. In July 2007, the Bank was named the 'Best Bank' in Sri Lanka by another prestigious international financial magazine 'Euromoney'. Commercial Bank has been rated AA+(lka) by Fitch Ratings.
Sri Lanka's benchmark priv
ate bank to accept deposits from foreigners and Sri Lankan expatriates. The Commercial Bank of Ceylon has become one of the first Sri Lankan banks to open its vaults to foreigners, enabling them to open bank accounts following the Central Bank's decision to further liberalize rules on local banks accepting deposits from persons resident outside Sri Lanka.Special Foreign Investment Deposit Accounts (SFIDA) can be opened in designated Foreign Currencies and Sri Lankan Rupees. SFIDA Deposits are offered in a variety of investment tenures to suit the requirements of each customer.
Citizens of foreign states, Sri Lankan citizens resident outside Sri Lanka, corporate bodies incorporated outside Sri Lanka and foreign institutional investors such as country funds, mutual funds and regional funds can now open SFIDAs with Commercial Bank.
"Through Sri Lanka's largest private sector bank, we would like to provide great investment opportunities to overseas clients and at the same time help the country attract Foreign Funds for its' development activities. Investors would have the comfort of dealing with the Bank enjoying the highest Credit Rating among all the local private banks." Commercial Bank's Chief Operating Officer Ravi Dias said in a statement.
The Minimum Initial Deposit required to open a SFIDA is US$ 10,000 or its equivalent in other designated Foreign Currencies or Sri Lankan Rupees. All SFIDA accounts are exempted from Income Tax, Withholding of Income Tax and Debit Tax. Foreign Currency will be accepted in the form of Travellers' Cheques, Bank Drafts or Currency Notes brought into the country by the account holder on declaration to Sri Lanka Customs as applicable during his / her temporary visits to Sri Lanka. Outward remittances, transfers to other SFIDAs, disbursements of the account holder in Sri Lanka are possible.
Established in 1969, Commercial Bank is Sri Lanka's leading bank, with dominant positions in consumer banking, treasury and securities markets. The Bank owns a network of 166 computer-linked branches, supermarket banking outlets and service centres and 317 ATMs in Sri Lanka while its operations in Bangladesh have grown to nine branches.
The Bank has been adjudged Sri Lanka's 'Bank of the Year' six times by 'The Banker,' a top notch global banking magazine and also been rated the 'Best Bank in Sri Lanka' for ten consecutive years by the US based 'Global Finance' magazine. In July 2007, the Bank was named the 'Best Bank' in Sri Lanka by another prestigious international financial magazine 'Euromoney'. Commercial Bank has been rated AA+(lka) by Fitch Ratings.
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