People’s Bank steps up efforts to attract increased flows of foreign exchange to the nation

By Nishel Fernando

Backed up by its extensive network in providing unparallel banking solutions to 14 million customer base, People’s Bank has been a playing a key role in facilitating foreign exchange inflows into the country over time while contributing towards the development activities of the nation.
People’s Bank, Senior Deputy General Manager – Overseas Customer Services, Rohan Pathirage recently sat down with Daily Mirror to share some of key insights into the Bank’s role in attracting foreign exchange via fulfilling the needs of Sri Lankan migrant workers, exporters, importers as well as foreign investors, which in turn serve the national interest of attracting more foreign exchange inflows to the country.
Pathirage Specifically highlighted recent measures undertaken by People’s Bank to facilitate needs of valuedSri Lankan workers abroad in light of the COVID-19 pandemic such as increasing focus on digital channels by partnering with foreign banks and exchange houses. 

Following are the excerpts of the discussion:

Q: What’s People’s Bank role in facilitating foreign exchange inflows into the country? 

Foreign exchange has always been important to Sri Lanka, mainly to support imports into the country and for other development work for the people of our country. In recent times this requirement has become more challenging due to the slump in export earnings and sharp decrease in tourism earnings,both driven by the Covid-19 Pandemic. 
People’s Bank has always been playing a pivotal role in ensuring inflows of foreign exchange to the country. We provide credit facilities at very competitive rates to export-oriented manufacturers/customers, to the tourism sector as well as various facilities to 
Sri Lankan workers going abroad. 
Workers’ remittances is the most important foreign exchange earner for Sri Lanka. In 2020, Sri Lanka received $7,103.9 million in Worker’s Remittance inflows with over two million 
Sri Lankan expatriates working overseas. There has been a steady increase in   remittance inflow to Sri Lanka over the years. The contribution of remittances through formal channels to Sri Lanka accounts for nearly 8 percent of the Gross Domestic Product (GDP) and this reflects the significance of foreign remittances flowing into the country particularly from Middle Eastern, East Asian and Western countries.
In this context, Peoples bank is now moving ahead in the remittance market with our upgraded ‘People’s Webremit’ service  as a leading remittance provider to many Sri Lankans around the globe for decades. The “People’s Webremit” service has expanded intomany destinations within a short period of time.This is fully owned Web Remittances Solution which enables our agents to send remittances easily and instantly to People’s Bank accounts and any other bank account without a hassle.
In addition, our migrant Workers also have the option to send their earnings to People’s Bank via SWIFT/TELEX OR through a Draft where we assure the best value for their hard-earned money.
These developments, led by the People’s Bank have supported the country’s efforts to attract more Workers’ remittance via formal channels. 
I must emphasise that most foreign currency earners prefer People’s Bank due to the unparalleled position of stability and security we offer while maintaining the highest level of professionalism and ethics in all our activities.

Q:  What are the key foreign currency Deposit products available for People’s Bank’s customers?
People’s Bank offers number of Foreign Currency Deposit products for our customers in accordance with the Foreign Exchange Act No.12 of 2017. 
Personal Foreign Currency Accounts (PFCA) is a key product targeting foreign currency earning individuals such as migrant workers including their family members who receive foreign remittances. Moreover, we also extend PFC accounts for children of migrant workers, which is named ‘Doo Daru EtheraIsura’.
Our Business Foreign Currency Accounts (BFCA) specifically cateres to individuals as well as companies engaged in foreign currency earning businesses such as export activities and export service-related activities.
For foreign investors and companies outside of Sri Lanka, we offer Inward Investment Account (IIA) to facilitate their investments in the country which may be in Colombo Stock Exchange (CSE), government securities market or even in real-estate. 
Likewise, we offer a range of foreign currency deposit products to cater to the varying needs of people and companies who earn or receive foreign currency.
Other products made available to our client base include: Special Deposit Account (SDA), Outward Investment Account (OIA), Diplomatic Foreign Currency Account/ Diplomatic Rupee Accounts (DFCA/DRA),Senior Foreign Nationals- Special Accounts (SFNFDA/SFNRA), Resident Guest Scheme- Special Account (SFNFDA/SFNRA), Resident Guest Scheme- Special Account (RGFCA/RGRCA ), Emigrants Remittable Income Accounts (ERIAs), Non Resident Rupee Accounts ((NRRAs) , External Commercial Borrowing Account (ECBA) and EtheraVasana Rupee Savings Account.

Q: Special Deposit Accounts (SDA) was introduced last year by the Central Bank. How has been the response for this product?
There is a huge positive response from all over the world for SDA and we receive large number of inquiries on SDA daily.
We believe that SDA,offered by the People’s Bank to be a valuable opportunity for our customers to get very high return for their investments and hard-earned money while supporting the country to strengthen its external account by increasing foreign exchange inflows into the country.   SDA offers an additional interest of 1 percent and 2 percent over the normal interest rate of 6 months and 12 months fixed deposits and these deposits can also be rolled over for a period of 24 months with high returns.
So, at People’s Bank, we ensure the security as a state Bank while offering highest interest rate for our customers. 

Q: Has People’s Bank observed demand for SDAs from new foreign customers?
 Yes. we have received many inquiries from foreign customers. I would like to highlight that most of them are from customers of Sri Lankan origin who reside abroad.

Q: What’s the Bank’s current presence in inward remittances market?
We expanded our remittance relationship with nearly 1000 corresponding banks around the globe and maintainnearly 80 direct relationships with exchange houses worldwide.  
We continue to expand our reach, forming relationships with many new correspondents and by partnering with global remittance leaders such as Ria, MoneyGram,Cash Express and API integration with new remittance agents in new markets.
Presently, we provide variety of remittance services along with other banking solutions for Sri Lankans mainly in Japan, Korea, Italy and Middle East and in any other country. 
Moreover, People’s Bank has deployed Representatives who are providing an excellent and much-needed service to our fellow Sri Lankans in major remittance markets in South Korea, Saudi Arabia, United Arab Emirates (UAE), Kuwait and Qatar by providing all banking needs supported by digital banking services. These representatives can open Foreign Currency Accounts and Rupee Accounts paperless within just 10 minutes, a unique feature introduced by the Bank through Express Banking.

Q: how has the pandemic impacted the Bank’s foreign currency operations and what were the measures taken to mitigate such impacts?
Despite the adverse impacts of the Pandemic, People’s Bank has been successful in maintaining relationships with Exchange Houses and Banks which offer convenient solutions based on mobile Applications.Therefore, our customers abroad have the convenience of sending remittances from their residences without having to go out in this on-going Pandemic situation throughthe ‘Peoples Webremit’ mobile app which facilitates online real time remittance transactions. 
In addition, as Sri Lanka’s leader in digital banking services, We provide customers across the island the opportunity to enjoy a convenient and efficient banking experience 24 hours a day, 365 days of the year, through our 741 branches and an extended ATM network of over 4,000 ATMs without ever having to visit a bank branch.In addition, our mobile banking App and Internet banking facility enables customers to perform most of their transactions from right at home.
Our customers can also send remittances for over the counter cash payments to be claimed at any of the People’s Bank branches in the island which also happens to be the country’s largest branch network. This facilitates even any non-account holders to obtain cash at any People’s Bank Branch by producing a valid identity card and the Reference (PIN number).
We also provide conversion of remittances to rupees and foreign currency deposit at highly attractive exchange rates in the market. These services benefits and facilitate our Sri Lankans working abroad to make most out of their hard-earned money.
Overall, I believe that our Bank has succeeded in rising above the challenges despite the tough and ever changing external factors. 

Q: What is the advice you can give to Sri Lankans going abroad/worker abroad at present? 

As People’s Bank, we often ensure to advice our workers on how to manage their hard-earned money to achieve prosperity for them and their families. 
My advice is that every Sri Lankan migrant worker should consider opening a Foreign urrency Account with People’s Bank before they leave here or even from overseas to facilitate their remittance transfers to their accounts, directly. I can assure that our advanced remittance systems would facilitate smooth transfers of remittances in real time within a matter of seconds.
Customers also get the benefit of accessing their accounts conveniently via our People’s Wave App which remains the most downloaded financial app in Sri Lanka. 
Further, if you open a Foreign Currency Account (FCA) and also Rupee Account with us, as a Sri Lankan expatriate, you have the convenience of sending remittances to FCA and transfer any amount to a Rupee account for the benefit of your loved ones by using People’s Wave App leaving a balance as an investment. Therefore, when you return to Sri Lanka, you will have sufficient funds to make an investment or even to start your own business. In addition, the People’s Bank would also ensure that you are given required assistance and guidance to start a business as an SME. 
You can also open a Doo Daru EtheraIsura PFC account and remit a fixed amount, so that the funds in the account grows with the growth of your Children ensuring their financial well-being/Security.
As a state bank, People’s Bank, providesthe ultimate guarantee on yourthe security of your hard-earned money alongwith unparalleled returns on your money while contributing towards the development of our country with the profits earned by the Bank. Therefore, as a Sri Lankan expatriate you will become a partner of the development of our country when you Bank with People’s Bank – Truly a Bank of the People.