The Central Bank of Sri Lanka (CBSL) is reminding the public to remain vigilant against advertisements promoting overseas property investments, reiterating a stern warning it first issued in June of this year. The Bank stressed that these promotions, which continue to appear in print and on social media, often encourage transactions that violate the country’s strict foreign exchange laws.

The initial warning in June came after the banking regulator observed a notable increase in advertisements that not only promoted investments in immovable properties abroad but also offered guidance on securing prohibited foreign financing for such purchases.

In its June statement, the CBSL drew public attention to the specific regulations under the Foreign Exchange Act, No. 12 of 2017, to prevent citizens from engaging in unauthorised foreign exchange transactions.

As outlined by the CBSL, the key regulations remain in effect:

• Limited Personal Transfers: Resident individuals are only permitted to make payments for overseas property investments from their Personal Foreign Currency Accounts (PFCAs). This is capped at a limit of $US20,000 or its equivalent in any other designated foreign currency.
• Prohibition on Business Accounts: The use of funds from Business Foreign Currency Accounts (BFCAs), maintained by either individuals or entities, for property investments abroad is not permitted.
• No Foreign Financing: Sri Lankan residents are explicitly prohibited from obtaining foreign loans or raising funds from non-residents for any purpose, including the acquisition of overseas property.