Blanket amnesty for money repatriated from Swiss Banks: FinMin
2 October 2015 04:32 pm
The government extended an olive branch to all Sri Lankan nationals, allowing them to repatriate all foreign investments with no questions asked.
“Please bring back your money to Sri Lanka. We won’t ask any questions and we will guarantee safety. We have already instructed the Exchange Control Department, the Central Bank and the commercial banks,” Finance Minister Ravi Karunanayake said today.
He said that the government took the decision after the Union Bank of Switzerland downgraded Sri Lanka and two other countries and ordered the closure of all accounts of these countries in its banking system.
“If the Swiss are asking you to leave, bring them here instead of taking them to Dubai or Singapore. You can put them in a current account, or invest in bonds, the stock market, or put them in savings,” Karunanayake said.
He added that the Sri Lankan Diaspora alone had foreign investments of US$10-15 billion, and the government expects US$2-3 billion in inflows in the next 6 months.
“We already have the confidence of the world with the outcomes in Geneva and New York. So place your confidence in us. You’re getting zero percent interest there. Come and get 3-4 percent interest here,” he said.
He went on to say that this would be the solution to the low local savings which is stifling local investments.
“ Instead of paying foreigners interest on bonds, we want local funds,” he said. Nearly 50 percent of the country’s debt is from foreign sources.
Karunanayake expressed that this would be the first step in creating a financial hub in Sri Lanka, and said that Indians too will be requested to bring their savings here, capitalizing on the close working relationship between the Prime Ministers of the two countries.
He added that success from this exercise would strengthen the rupee. The rupee has fallen 7 percent
against the dollar this year after the Central Bank decided to stop intervention to maintain foreign reserves.
Karunanayake was unable to comment on the current strength of foreign reserves.
“We are not desperate. If we are desperate, we can take more drastic measures,” he said.