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Business Foreign Currency Accounts Overview

BUSINESS FOREIGN CURRENCY ACCOUNTS (BFCAs)

All existing Foreign Exchange Earners’ Accounts (FEEAs), Inward Remittance Distribution Accounts (IRDAs), Foreign Currency Accounts for Agents of Foreign Shipping Line or Air Lines (FCAAF SAs) are Re-Designated as Business Foreign Currency Accounts (BFCAs),

HBL Business Foreign Currency
BUSINESS FOREIGN CURRENCY ACCOUNTS (BFCAs)

Persons eligible to open BFCAs

  • The following persons in, or resident in Sri Lanka who earn foreign exchange:
    • An individual resident in Sri Lanka.
    • A sole proprietorship or partnership registered in Sri Lanka where the proprietor or a majority of partners are resident in Sri Lanka (in case of a partnership with two partners, at least one partner shall be a resident in Sri Lanka).
    • A company incorporated in Sri Lanka.
    • A company incorporated outside Sri Lanka which is registered as an overseas company under the Companies Act No. 7 of 2007.
    • A State Institution with the recommendation of the Secretary to the relevant line Ministry or appropriate Authority.
    • A person authorized to carry on business as a shipping agent or a general sales agent in Sri Lanka on behalf of a foreign shipping line or airline (foreign principal) with a valid license or authorization letter issued by the Director General of Merchant Shipping and Director General of Civil Aviation Authority of Sri Lanka, respectively.

  • An administrator or executor of the estate of a deceased person, who maintained a Business Foreign Currency Account with that authorized dealer or restricted dealer, until the completion of the administration of the deceased persons’ estate.
  • A receiver or liquidator, in the name of a company that maintained a Business Foreign Currency Account with that authorized dealer or restricted dealer, until proceedings are concluded.

A Non-Governmental Organization shall not be permitted to open and maintain a Business Foreign Currency Account.

Permitted Credits

  • Remittances received in foreign exchange from abroad through the banking system in respect of, export of goods and services, entrepot trade, overseas projects undertaken by the account holder, investments made outside Sri Lanka and goods supplied locally to a person resident outside Sri Lanka.
  • Remittances received in foreign exchange through the banking system from the overseas employers with whom the account holder has an arrangement for the disbursement of wages and/or earnings of Sri Lankans who are rendering services to such overseas employer.
  • Foreign currency in the form of travelers’ cheques, bank drafts or currency notes accepted by the account holder in Sri Lanka in respect of goods and services supplied by such person to a person resident outside Sri Lanka.
  • Where the account holder is a shipping agent or a general sales agent in Sri Lanka, remittances received in foreign exchange through the banking system from the respective foreign principal or from a designated third party on behalf of the foreign principal for the purposes under the respective agency agreements.
  • Freight collected in foreign exchange by the account holder who is a shipping agent or a general sale agent in Sri Lanka on behalf of the foreign principal, by way of a remittance against a Business Foreign Currency Account or an account maintained in the Offshore Banking Unit.
  • Foreign currency brought into Sri Lanka by the account holder upon declaration [i.e., where Such foreign currency notes exceed or equals to USD 15,000 or its equivalent in other foreign currency on a declaration to Customs Department or where such foreign currency notes are less than USD 15,000 or its equivalent in other foreign currency on an appropriate declaration to the authorized dealer or restricted dealer].
  • Transfers from Business Foreign Currency Accounts or accounts maintained in the Offshore Banking Unit, irrespective of the account holder.
  • Payments received in foreign exchange in favor of the account holder being consideration for Goods or services supplied to a resident, to the extent such payments and receipts or categories of transactions have been permitted by directions issued by the Central Bank.
  • Proceeds of foreign currency loans and advances obtained by the account holder from the Domestic banking unit or Offshore Banking Unit of an authorized dealer or a restricted dealer, with the prior approval of the Central Bank.
  • Proceeds or any part thereof from sale of any foreign asset of the account holder, where the asset had been acquired by debiting the Business Foreign Currency Account.
  • Capital, capital gains and other receipts arising from investments made in Sri Lanka in foreign currency, if the original transfer had been made by debiting the Business Foreign Currency Account (or from the Foreign Exchange Earners’ Account of the account holder prior to this order come into effect).
  • Capital and capital gains received from foreign investments into an Outward Investment Account, if the original investment had been made by debiting the Foreign Exchange Earners’ Account of the account holder prior to this order come into effect.
  • Unutilized foreign currency obtained by the account holder debiting the Business Foreign Currency Account as per sub paragraphs (4)(c) and (4)(d) of paragraph 2 of this Schedule.
  • Unutilized balance remaining in the Foreign Travel Card of the same account holder, up to the amount such Foreign Travel Card had been loaded from the Business Foreign Currency Account.
  • Insurance premia received by the account holder on foreign currency denominated policies issued to eligible customers and co-insurers and claims received from re-insurers and National Insurance Trust Fund by Insurance companies registered with the Insurance Board of Sri Lanka.
  • Transfers from Personal Foreign Currency Accounts of the non-national employee resident in Sri Lanka, being overpayments of salaries and any other benefits.
  • Transactions or transfers from any other category of accounts that may be permitted to maintain by the Central Bank from time to time, to the extent such transactions or transfers have been permitted by Directions issued by the Central Bank.
  • Remittances originating outside Sri Lanka from the account holder in terms of Section 8(3) of The Act.
  • Interest earned in foreign currency on the funds held in the account.

Permitted Debits

  • Any outward remittances made outside Sri Lanka.
  • Disbursements in Sri Lanka in Sri Lanka Rupees.
  • Withdrawal in foreign currency notes up to USD 10,000 (or equivalent in any other foreign currency) for travel purpose as permitted by directions issued by the Central Bank.
  • Withdrawal in foreign currency notes up to USD 50,000 (or equivalent in any other foreign currency) at a time by gem and jewellery dealers for the purpose of purchasing cut and polished or rough gem stones and other raw materials abroad upon submission of confirmation obtained from the National Gem and Jewellery Authority.
  • Where the account holder is a shipping agent or a general sales agent in Sri Lanka, withdrawal In foreign currency notes up to USD 50,000 (or equivalent in any other foreign currency) per vessel per call as Cash-to-Masters, against inward remittance received from the foreign principal or from designated third parties on behalf of the foreign principal, on a request with the reasons acceptable to the authorized dealer or restricted dealer.
  • Where the account holder is a shipping agent or a general sales agent in Sri Lanka, repatriation of the surplus funds to the foreign principal, provided that a confirmation in writing is obtained from the account holder (i.e., Agent) to the effect that adequate funds have been retained in the account, to meet all local liabilities of the foreign principal in Sri Lanka including tax payable to the Government and the agency commission.
  • Transfers to Business Foreign Currency Accounts, Personal Foreign Currency Accounts or Accounts maintained in the Offshore Banking Unit, irrespective of the account holder.
  • Transfers to an Outward Investment Account of the same account holder.
  • Transfers to an Inward Investment Account of a resident outside Sri Lanka for the purpose of Repayment of a foreign currency loan obtained from such foreign lender by the account holder.
  • Transfer of funds for uploading a Foreign Travel Card.
  • Debt servicing expenses and repayment of foreign currency loans obtained by the account Holder from authorized dealers or restricted dealers.
  • Transfers in respect of any investment permitted to be made in Sri Lanka in foreign currency Utilizing funds in the Business Foreign Currency Account.
  • Payments of claims to eligible customers and co-insurers in respect of foreign currency Denominated policies, premia to local or overseas re-insurers and National Insurance Trust Fund and brokerage by insurance companies registered with the Insurance Board of Sri Lanka.
  • Payments to residents in foreign exchange in respect of transactions or categories of transactions, to the extent such transactions have been permitted by directions issued by the Central Bank.
  • Transactions or transfers to any other category of accounts that may be permitted to maintain by the Central Bank from time to time, to the extent such transactions or transfers have been permitted by directions issued by the Central Bank.

Under no circumstances Sri Lanka Rupees shall be converted into foreign currency and be credited into a Business Foreign Currency Account.