Press briefing of Cabinet Decision taken on 2022-03-14

General Direction to accept Bona-Fide Investment of the Non-Resident Companies by the Resident Companies

- In view of promotion and regulation of Foreign Exchange in Sri Lanka, the Monetary Board of the Central Bank of Sri Lanka has made a recommendation to the Minister of Finance to issue a direction to permit the Companies incorporated in Sri Lanka under the Companies Act, No.07 of 2007, allowing the said Companies to issue shares to the non‑resident investor for the remittances directly made to the resident Company's account with no attention or knowledge, without making remittances via Inward Investment Account (IIA) of the investor for the purpose of acquiring shares of a resident Company by a non‑resident investor. Accordingly, Cabinet decided to grant its concurrence for the measures taken by the Minister of Finance to issue the relevant directions under section 7(10) of the Foreign Exchange Act, No.12 of 2017.