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The Government of Sri Lanka has no intention to tax or freeze non-resident foreign currency (NRFC) accounts, the Ministry of Finance stated in a press release. “Certain statements have been made by parties with vested interests that the government plans to tax or freeze non-resident foreign currency (NRFC) accounts. We wish to state categorically state that the government has no intention of taxing the interest income on non-resident foreign currency accounts or freezing the balances in such accounts or in any other way reducing the facilities available to holders of such foreign currency accounts. On the contrary, the government has provided additional facilities and opportunities for non-resident Sri Lankans to invest their foreign currency in Sri Lanka,” the release added. A new investment scheme, Rupee Accounts for Non Resident Sri Lankan Investment (RANSI), has been implemented, for Sri Lankans working overseas to maintain foreign currency accounts in a bank in Sri Lanka, invest in financial and other assets in Sri Lanka, and repatriate their funds whenever they wish. Finance Ministry Release: Certain statements have been made by parties with vested interests that the government plans to tax or freeze non-resident foreign currency (NRFC) accounts. We wish to state categorically that the government has no intention of taxing the interest income on non-resident foreign currency accounts or freezing the balances in such accounts or in any other way reducing the facilities available to holders of such foreign currency accounts. On the contrary, the government has provided additional facilities and opportunities for non-resident Sri Lankans to invest their foreign currency in Sri Lanka. As indicated in the Budget 2001, a number of incentives have been provided to overseas employees as follows: a) Housing loans at concessionary rates of interest upto twice the amount maintained in a foreign currency account with a minimum balance of US$ 2,000. b) Insurance compensation to dependents on account of death whilst abroad to be increased from Rs.250,000 to Rs.300,000 and funeral expenses from Rs.25,000 to Rs.50,000. Compensation for migrant workers returning due to accidents also to be increased from Rs.100,000 to Rs.200,000. c) Monthly pension benefits commencing at the age of 55 for migrant workers who return after successful completion of employment overseas. d) Scholarship awards to children to be raised from Rs.25,000 TO Rs.30,000 for technical and university education and from Rs.10,000 to Rs.15,000 for primary education. Full scholarships will be offered to children who obtain IT training from approved institutions. e) Dedicated money changing counters will be set up by the two state banks for returning migrant workers at the Airport and authorised agents will be appointed in selected countries to provide banking facilities. f) A transit lodge at the Airport will be set up to facilitate in-bound and out-bound travel and embarkation tax will be borne by the Foreign Employment Bureau. In addition, a new investment scheme, namely, Rupee Accounts for Non Resident Sri Lankan Investment (RANSI), has been implemented, under which Sri Lankans working abroad can maintain foreign currency accounts in a bank in Sri Lanka, invest in financial and other assets in Sri Lanka, and repatriate their funds whenever they wish. Hence, Sri Lankans working abroad may place their foreign currency funds in banks in Sri Lanka with the assurance that these funds could be withdrawn whenever desired.
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