Special Deposit Account (SDA) with Sri Lankan Banks
Posted on May 21st, 2020

Embassy of Sri Lanka  Washington D.C.

The Government of Sri Lanka has introduced a new bank account termed ‘Special Deposit Account (SDA)’ for all Sri Lankans living in and outside the country to remit their foreign currency earnings, savings and investments to any bank of their preference in Sri Lanka. It is in the form of ‘Term Deposits’ either in any designated foreign currency or in Sri Lanka Rupees.
 
The Embassy, while appreciating the generosity on the part of Sri Lankans living in the United States of America who have already extended their valued contributions for SDAs, encourage others who have not yet invested, to take advantage of this excellent opportunity to earn the best return for their investments as an expression of their continued solidarity with the people of Sri Lanka, during this challenging environment.
 
The salient information on SDAs is as follows; 

Eligible Persons 

  • Sri Lankan individuals resident in or outside Sri Lanka
  • Dual Citizens
  • Citizens of other States with Sri  Lankan origin
  • Non-nationals resident in or outside Sri Lanka
  • Funds, corporate bodies, associations incorporated/registered outside Sri Lanka

 
Opening and Maintaining SDAs 

  • SDAs shall be opened during the six months period from the date of the regulations
  • SDAs shall be opened and maintained only in the form of Fixed Deposits. SDAs in the form of savings accounts may be opened as operational accounts only for the purpose of receiving funds to be placed in SDAs.
  • SDAs shall be opened and maintained either in any designated foreign currency or in Sri Lanka Rupees.
  • SDAs may be held as joint accounts by eligible persons. 

Minimum tenure

  • Six (06) months 

Interest payable

  • 1 percentage point and 2 percentage points per annum for SDAs with a tenure of 6 months and 12 months, respectively, payable at maturity of the deposit, above the deposit interest rates applicable for normal deposits of similar maturities by the respective bank. 

 
Interest Rates 

 
Repatriation of Funds

  •     Freely convertible and repatriable outside Sri Lanka on the maturity of termed posits.

Exemption

  • Exempted from any procedural requirements specified in the Foreign Exchange Regulation No. 1 of 2017 published in the Gazette Extraordinary No 2045/56 of 17, 2017. 

Permitted Credits

  • Inward remittances in foreign currency received from outside Sri Lanka in favor of the account holder through the banking system.
  • Transfers from Inward Investment Accounts (IIA) or accounts maintained in the Offshore Banking Unit by the account holder, out of the proceeds received as inward remittances during the six months period from the date of the regulations in favor of the account holder. 

Permitted Debits 

  • Outward remittances of maturity proceeds upon maturity of the term deposit.
  • Transfer of maturity proceeds of SDA term deposits to an Inward Investment Account or an account maintained in the Offshore Banking Unit by the same accountholder.
  • Disbursements in Sri Lanka in Sri Lanka Rupees. 

Other Conditions 

  • In the event of receiving funds through an Inward Investment Account or an account maintained in the Offshore Banking Unit, of the same accountholder, ADs shall ensure that such funds have been received as inward remittances into Sri Lanka.
  • Funds withdrawn under the third bullet point of Permitted Debits” above cannot be credited back to a SDA.
  • Outward remittances in favor of the accountholder may be effected through an Authorized Dealer (AD) other than the AD with whom the SDA is maintained, provided that a confirmation shall be obtained from the AD with whom the SDA is maintained stating that the funds were debited from the SDA of the accountholder and out of the funds credited in compliance with the regulation. 

 
For inquiries, please contact:
 
1. Mr. Sarath Dissanayake            Deputy Chief of Mission
                                                Mobile: 202 816 9666
                                                Email: dcm@slembassyusa.org
 
2. Mr. Niranga Palipana                Second Secretary
                                                Mobile: 202 579 4729
                                                Email: niranga@slembassyusa.org
 
3. Mrs. Aruni Warnakula                Accounts Officer
                                                Mobile: 202 288 8546
                                                Email: accounts@slembassyusa.org
 
 
 Embassy of Sri Lanka
 Washington D.C.
 
21st May 2020

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