The Central Bank of Sri Lanka (CBSL) has issued a public advisory warning residents not to be misled by advertisements promoting overseas property investments and foreign financing options circulated via print and social media.
In a statement released today, the CBSL noted a recent surge in such advertisements targeting Sri Lankan residents, often offering guidance on acquiring immovable properties abroad and obtaining foreign loans to fund these purchases.
The Central Bank emphasized that under the Foreign Exchange Act No. 12 of 2017 (FEA), resident individuals are not permitted to invest in overseas properties unless the payments are made through Personal Foreign Currency Accounts (PFCAs), subject to a maximum limit of USD 20,000 or its equivalent in other designated foreign currencies.
Furthermore, the CBSL clarified that:
Business Foreign Currency Accounts (BFCAs) maintained by residents cannot be used for such overseas property investments.
Resident individuals are prohibited from obtaining foreign loans or financing from non-residents for any purpose, including investments in overseas real estate.
The CBSL stressed that any individual or entity involved in or facilitating unauthorized foreign exchange transactions will be subject to legal action under the provisions of the FEA.
In light of these restrictions, the public is urged to exercise caution and verify the legality of such investment offers before taking action.
