The Central Bank of Sri Lanka (CBSL) has raised concerns over a growing number of advertisements in print and social media promoting overseas property investments to Sri Lankan residents.
In a media release issued this week, the CBSL stated that many of these advertisements also provide guidance on securing foreign financing for such ventures, which contravenes regulations under the Foreign Exchange Act, No. 12 of 2017. The CBSL release stated that Sri Lankans are only permitted to invest in overseas property using funds from their Personal Foreign Currency Accounts (PFCAs), and even then, only up to a maximum of USD 20,000 or the equivalent in another designated foreign currency.
It stated that the use of Business Foreign Currency Accounts (BFCAs) by residents, whether individuals or entities, for overseas property investments is strictly prohibited. Obtaining foreign loans or raising financing from non-residents for any purpose, including property investments abroad, is not permitted under the law.
The Central Bank called upon the public not to be misled by these advertisements, warning that people or organisations involved in facilitating such unauthorised foreign exchange transactions will face legal action under the Foreign Exchange Act.
