Outward Investment Account (OIA)
This account enables resident investors to invest in shares of companies incorporated outside Sri Lanka and sovereign bonds issued by foreign governments and governmental organizations.
Category 1: Companies other than companies limited by guarantee registered under the
No.07 of 2007
Category 2: Partnerships registered in Sri Lanka
Category 3: Individuals resident in Sri Lanka
Category 1 & 2 above could also be permitted to set up and maintain Branch Offices, Liaison Offices, Marketing Offices, Agency Offices, Project Offices, Representative Offices or other similar Offices (could be referred as Overseas Offices) outside the country.
Opening of Account
A foreign currency account could be opened for this purpose - OIA
The investor should submit the following required documents .
Common Documents - (applicable to all investors)
- Your request should be submitted along with an appropriate Application Form
- Recommendation by a Fellow Member of the Institute of Chartered Accountants of Sri Lanka
- Clearance from the Exchange control Department that there is no pending investigation under the provisions of Exchange Control Act.
- Certificate of Incorporation and articles of Association
- Board Resolution on the proposed investments
- An affidavit that the company has not remitted any funds to make overseas investments from any other Outward Investment Account in any other bank.
- Certified copy of the partnership agreement
- Tax clearances to cover the amount of investment by each partner
- Affidavits by each partner that they have not remitted any funds to make overseas investments from any other Outward Investment Account in any other bank.
- Tax Clearance to cover the investment amount
- An affidavit that they have not remitted any funds to make overseas investments from any other Outward Investment Account in any other bank
- An affidavit that they have not submitted an application to any bank to obtain the migrant allowance.
Resident Investors could invest as per the following.
Companies listed at the Colombo Stock Exchange - Investment of USD.500,000/- p.a.
Companies which are not listed at the Colombo Stock Exchange - Investment of USD.100,000/- p.a.
A partnership - Investment of USD.100,000/- p.a.
Individual resident in Sri Lanka - Investment of USD.100,000/- p.a.
Under no circumstances should such funds converted for the purpose of investment be permitted to remain in the account.
Permitted deposits to OIA
- Rupee proceeds of the eligible investor converted into foreign currency upto the investment requirement (subject to the stipulations set out in the gazette notification No. 1686/50 of 1/1/2011).
- Transfers from foreign currency account of the resident investor maintained in the Domestic Banking Unit (DBU).
- Proceeds of a loan obtained from a foreign source with the prior permission of the controller of exchange in order to finance an overseas investment.
- Inward remittances received as dividend payments in connection with the overseas investment.
- Proceeds of sale and maturity of sovereign bonds
- Profits, margins and surplus funds received from the Overseas Offices
- Inward remittances received as management fees, consultancy fees and commissions related to the investments made through this account.
- Inward Remittances received as sale proceeds of shares including capital gains and liquidation proceeds.
- Interest earned on deposits comprising of dividend, sale proceeds of shares including capital gains, proceeds of sale and on maturity of sovereign bonds, profit, margin and surplus of funds received from overseas office to the credit of the account.
Permitted withdrawals from OIA
- Payments for acquisition of shares in overseas as companies and sovereign bonds issued by foreign government and governmental organizations.
- Setting up and maintenance costs of Overseas Offices
- Bank charges, broker fees, commissions related to the investments made through the OIA
- Payments in foreign currency outside Sri Lanka for "current" transactions
- Withdrawals in Sri Lanka Rupees by converting foreign currencies
- Resident Investor could invest in shares in Overseas Companies and sovereign bonds issued by Foreign Governments.
- Opportunity to set up and maintain a branch office in overseas.
- Capital gains from investment.
- Resident investor is required to submit the list of all required documents within 3 months from the date of investment.
- Booking of forward exchange contracts is not possible until the required approval is obtained for investment.
- Closure of an account requires the prior permission of the Controller of Exchange.