People’s Bank’s SDA to drive inward remittances, boost investments

People’s Bank has stepped forward to boost the government’s efforts to rebuild Sri Lanka while providing eligible individuals and organisations with a significant investment opportunity by introducing the People’s Bank Special Deposit Account (SDA).

The People’s Bank Special Deposit Account (SDA) is a specialised account that allows eligible customers to receive the highest interest rates by remitting foreign earnings to People’s Bank for 6 or 12 month Fixed Deposits.
  People’s Bank has introduced SDA Account in accordance with the directions of the Central Bank of Sri Lanka.
Customers eligible to open SDAs include Sri Lankan individuals residing in or outside Sri Lanka, dual citizens, citizens of other states with Sri Lankan origin,          non-national residents in or outside Sri Lanka and funds, corporate bodies, associations incorporated/registered outside Sri Lanka and any other well-wishers.

The SDA will be opened during the 6 month period which spans from 8th April 2020 to 8th October 2020. They will be opened and maintained only in the form of Fixed Deposits with a minimum tenure of 6 months. 

SDAs shall be opened and maintained in designated foreign currencies; USD, GBP, EUR, AUD, CAD, HKD, SGD, JPY, SEK, NZD, DKK, NOK, CNY and CHF as well as in LKR. SDAs can be held as joint accounts by eligible persons.

The interest rates for 12-months Fixed Deposits at maturity stands at 6.00 percent (USD), 4.75 percent (GBP), 4.75 percent (AUD), 4.25 percent (EUR), 4.25 percent (CAD), 5.10 percent (NZD), 3.50 percent (SGD) and 10.50 percent (LKR) while the rates for 6-months at maturity are 4.25 percent (USD), 3.50 percent (GBP), 3.50 percent (AUD), 3.00 percent (EUR), 3.15 percent (CAD), 4.00 percent (NZD), 2.30 percent (SGD) and 8.75 percent (LKR).Funds are freely convertible and repatriable outside Sri Lanka on the maturity of the fixed d percent eposits.

Permitted Credits include Inward Remittances in foreign currency received from outside Sri Lanka in favour of the account holder and transfers from Inward Investment Accounts (IIA) or accounts maintained in the Offshore Banking Unit by the account holder out of the proceeds received as inward remittances during the 6 month period in favour of the account holder. Upon maturity of proceeds, funds of SDAs could be remitted outside Sri Lanka or transfer to an Inward Investment Account or an account maintained in the Offshore Banking Unit by the same account holder. All disbursements in Sri Lanka will be in Sri Lankan Rupees.