Monday Dec 16, 2024
Monday Dec 16, 2024
Wednesday, 2 December 2020 02:34 - - {{hitsCtrl.values.hits}}
The Special Deposit Accounts (SDAs) introduced in April this year has drawn over $ 270 million by early October as the Government yesterday announced the validity period to open same till April next year.
“Considering the potential of SDAs to attract a substantial amount of foreign exchange into the country and the resultant positive impact on the foreign currency reserve position of the country and the overall economy, GOSL has decided to extend the validity period of opening SDAs up to 7 April 2021 on recommendation of the Monetary Board of the Central Bank of Sri Lanka,” a statement from the Central Bank said.
The Government introduced the SDAs on 8 April to seek assistance for the national effort to overcome the effects of COVID-19 outbreak in the country.
“As at 7 October, total deposits in SDAs amounted to approximately $ 272 million,” the Central Bank added.
In addition, considering the favourable effects of retaining such foreign exchange within the country, the Government has allowed SDA holders, who wish to keep maturity proceeds of SDAs in Sri Lanka beyond the designated date of maturity, to renew and continue SDAs as normal deposits with authorised dealers.
The funds held in SDAs so continued as normal deposits will be eligible only for the interest rates offered by the authorised dealers for normal term deposits of the respective banks. Upon maturity, such funds are;
nFreely convertible and repatriable outside Sri Lanka on any future date
nPermitted to be transferred into an Inward Investment Account or a Personal Foreign Currency Account, if the account holder is eligible to open or currently maintain such an account
The Central Bank has issued necessary directions to authorised dealers (Licensed Commercial Banks and National Savings Bank) to implement the above decisions of GOSL.
It said further information on SDAs can be obtained by accessing the website of the Department of Foreign Exchange of the Central Bank of Sri Lanka (www.dfe.lk).
