Ceiling on outward investment and migration allowances to be lifted next year

The Central Bank (CB) plans to lift the ceiling imposed on outward investment and migration allowances from January 1, 2022, CB Governor Ajith Nivard Cabraal announced.

The CB imposed several suspensions/restrictions on outward remittances for six months from July 2, this year, to minimise the pressure on the exchange rate and to preserve the foreign currency reserve position of the country.

Under the current restrictions, those who are claiming the migration allowance for the first time under the general permission will get a maximum of US $ 30,000 and for others who have already claimed the migration allowance will be subjected to a maximum of US $ 10,000.

Further, the CB has suspended repatriation of funds under the migration allowance out of the funds received as monetary gifts by an emigrant from an immediate family member.

The overseas investments through outward investment accounts are also suspended for Sri Lankans under most circumstances.

As the country expects fresh foreign exchange inflows easing the pressure on the external account, Cabraal noted that the CB plans to lift these controls on the capital outflows, as a relief to the public.