Regulatory Alerts2018-03-14 | Banking Act Order No. 1 of 2018Banking (Off-Shore Banking Business Scheme) Order
The Monetary Board of the Central Bank of Sri Lanka, with ministerial approval, issued Order No. 01 of 2018 to modernize the regulatory framework for offshore banking operations. The Order replaces Clause 5 of the 2000 scheme, mandating that non-resident accounts in offshore units be credited with inward remittances and processed for transactions permitted under the Foreign Exchange Act of 2017 in designated foreign currencies. It simultaneously revokes the preceding 2009 and 2011 scheme orders to consolidate offshore banking regulations under a single updated statutory instrument.
1ft March20l8 MONETARY BOARD CENTRAL BANK OF SRI LANKA BANKING ACT ORDER No.01 of2018 BANKING (OFF.SHORE BANKING BUSINESS SCHEME) ORDER Order made by the Monetary Board of the Central Bank of Sri Lanka with the approval of the Minister, under Sections 23,25 and26 of the Banking Act, No. 30 of 1988 as amended.
- Citation
- Amendment to Clause 5 in the' Banking (OffShore Banking Business) Order,2000 issued on 7ft April2000. The following Shore Banking Permitted transactions in an account of a nonresident This Order may be cited as the Banking Act, Order No. 01 of 2018. new Clause, replaces the Clause 5 of the Banking (OffBusiness Scheme) Order, 2000, dated 7n April2000
- An account maintained by a non-resident in an offshore unit shall be: (a) credited with inward remittances, and (b) credited or debited, as the case may be, with transactions that are permitted under the provisions of the Foreign Exchange Act, No. 12 of 2017, in any designated foreign currency.
- Revocations The following are hereby revoked: (i) Banking Act, Order No. 1 of 2009 Banking (Off-Shore Banking Business Scheme) Order. (ii) Banking Act, Order No. 2 of 2011 Banking (Off-Shore Banking Business Scheme) Order. ilr*^\ r"*1 Dr. Indrajit Coomaraswamy Chairman of the Monetary Board and Governor of the Central Bankof Sri Lanka