The Cabinet of Ministers has decided to extend the validity period for opening Special Deposit Accounts (SDAs) under the Foreign Exchange Act for a further period of time.
The relevant orders have been issued under the Foreign Exchange Act No.12 of 2017 to allow the provisions to open a special deposit account with effect from April 2020 in order to attract foreign currency remittances into the country, according to a cabinet decision statement.
Cabinet of Ministers have also approved to pay an additional interest with a view retain the prevailing deposits of the said accounts further.
Accordingly, as at March, 2021, total deposits in the said accounts amounted to US$ 360.3 Million.
The validity period for opening the SDAs will expire this month. The government earlier extended the validity period of opening SDAs up to 07 April 2021 on recommendation of the Monetary Board of the Central Bank of Sri Lanka.
The Cabinet of Ministers approved the proposal tabled by Prime Minister Mahinda Rajapaksa as the Minister of Finance to extend the validity period and to issue orders in accordance with the provisions of the Foreign Exchange Act to encourage the parties who wish to deposit money further.