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Monday, 5 October 2015 00:00 - - {{hitsCtrl.values.hits}}
Finance Minister Ravi Karunanayake – Pic by Lasantha Kumara
By Charumini de Silva
The Government is requesting citizens holding Swiss bank accounts to redeposit the cash in the country’s banking system with a promise that no questions will be asked.
Finance Minister Ravi Karunanayake said they had been looking at this in a very persuasive manner because they did not want to do anything that would hinder the confidence of the people.
“We have estimated about $ 10 to $ 15 billion is being held by our own diaspora overseas. We are inviting them to bring those monies back with an assurance to offer rates several times more than those offered in international money markets. In Switzerland they are getting a zero return and they can come and get 2% to 3% interest over here,” Karunanayake told the media last Friday (2).
Noting that the Government is positioning Colombo as a financial centre, he asserted that before too long Sri Lanka is going to be the alternate Singapore and Dubai.
Highlighting that Singapore and Dubai were now overrun and expensive, he asserted that this was a great opportunity for the Sri Lankan diaspora to help the country. “We are paying outside people 6% to 7%; bring your own hard-earned money back to the country.”
Karunanayake said that the Ministry would instruct the Exchange Control Department, Inland Revenue Department and other necessary institutions to bring any other satisfactory measures in order to fortify investor confidence.
“All we want to do is make Sri Lanka a place of confidence. Whatever that has got to get that additional confirmation, we will work around with the commercial banks with the institutional and private investors and try to fortify their requirement into this country,” he assured.
The Minister went on to say that the invitation was not only for Swiss account holders, but for any form of investment held anywhere in the world. “They can come and invest in a normal current account, bonds or stocks or just come and keep Monday in any account they feel secure,” he added.
Justifying why the Government did not impose a ruling on a minimum amount he said: “If we put a minimum, they will think that we are trying to bring something in a surreptitious manner. I believe with this clarity the international community has on Sri Lanka, around $ 2 to $ 4 billion is expected to flow in over the next six months.”
When asked if the Government was desperate for foreign inflows, the Minister responded that they had a healthy amount of foreign reserves, but failed to provide any figures.
