Residential companies to obtain investments made in good faith by non-resident firms

• Cabinet gives approval for Basil to issue order under Foreign Exchange Act

Cabinet has given approval to the Minister of Finance to issue an Order under the Foreign Exchange Act giving a general directive for residential companies to obtain investments made in good faith by non-resident companies.

The Monetary Board of the Central Bank of Sri Lanka has recommended the Minister of Finance to issue the Order authorising the companies established in Sri Lanka under Companies Act No. 07 of 2007 to issue shares to non-resident investors who inadvertently or unknowingly made remittances directly to the account of the resident company without using an Inward Investment Account.

The move is to regulate and promote foreign exchange in the country.

Cabinet granted approval for the Minister to issue the Order under Section 7 (10) of the Foreign Exchange Act No. 12 of 2017.