On 26th October 2021, the Registrar General of Companies announced that the Ministry of Finance proposes to amend the Foreign Exchange (Classes of Capital Transactions Undertaken in Sri Lanka by a Person Resident Outside Sri Lanka) Regulations No. 2 of 2021 (“Fx Regulations”) to mandate a minimum investment threshold of USD 50,000 for companies incorporated with foreign shareholding in Sri Lanka. Such restriction will not be applicable to Tech start-ups, IT/TES and BPM businesses and companies to which industry specific limitations and restrictions are applicable under the Fx Regulations.
As an interim measure, company secretaries have been instructed to satisfy the said requirement by submitting a confirmation of such investment (being made through an Inward Investment Account) to the Registrar General of Companies, together with other incorporation documentation.
Ushara Ratnayaka
