Special Foreign Investment Deposit Accounts (SFIDA)
What documents are required to open SFIDA Accounts?
- Relevant mandate (duly completed)
- Photocopy of passport (relevant pages where photograph and personal details are available)
- Letter of introduction from your banker overseas (not required if the investments are made by Sri Lankans)
Certified copies of:
- The Certificate of Incorporation
- Memorandum (as appropriate) and Articles of Association duly certified by the Chairman and Secretary
- Certified extract of Resolution of the Board of Directors as stated in the Mandate Form
- Certified list of Directors, issued by the Registrar of Companies of the country where the company is incorporated
- Specimen signature cards of officers who are authorised to operate the account indicating their Passport/National Identity Card Numbers and witnessed by the Chairman/Secretary of the Company
- The signatures of the Chairman, Secretary and the Directors should be certified by their bankers
- Letter of Introduction from your banker overseas
Who are the investors that can open a SFIDA Account?
- Citizens of foreign states
- Sri Lankan citizens resident outside Sri Lanka
- Corporate bodies incorporated outside Sri Lanka
- Foreign institutional investors such as country funds, mutual funds and regional funds.
The Accounts under this category could be opened jointly with two or more eligible investors in the following form:
- Time Deposit Accounts (for periods of 03 to 12 months)
- Savings Deposit Accounts (in designated foreign currencies or in Sri Lankan Rupees)
What is the minimum balance requirement?
USD 10,000 or equivalent in other designated foreign currencies or Sri Lankan Rupees.
What deposits are permitted to a SFIDA Account?
- Proceeds of inward remittances received from abroad through the banking system for the purpose of investment in such deposits
- Foreign currency in the form of travellers' cheques, bank drafts or currency notes brought into the country by the account holder on declaration to Sri Lanka Customs as applicable during his temporary visits to Sri Lanka these should be tendered in person to the Authorized Dealer, provided that the travellers' cheques have been issued outside Sri Lanka and the bank drafts endorsed in the name of the account holder
- Interest accruing on the funds held in the account
What withdrawals can be made to a SFIDA Account?
- Outward remittances
- Transfers to other SFIDA Accounts
- Withdrawals in Sri Lanka Rupees
What are the advantages of maintaining a SFIDA Account?
- Exemption from income tax, withholding tax and debit tax for SFIDA Accounts
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