Economic Transformation Act 2024 · As enacted · Part II
38. Payments relating to a foreign investment to be freely transferable
Official English translation. The Sinhala text prevails. Open the official Sinhala text, official PDF on documents.gov.lk
Official translationFrom Department of Government Printing, unchanged
All payments relating to a foreign investment shall be freely transferable, into and out of Sri Lanka, in accordance with laws and regulations in force, without delay, and in freely convertible currency. Such transfers shall include, in particular-
initial capital and additional amounts to maintain or increase an investment;
return of the investment invested;
payments made under a contract, including repayments pursuant to a loan agreement, royalties, fees;
proceeds from the sale or liquidation of all or any part of an investment;
payments of compensation under section 39;
payments arising out of the settlement of an investment dispute; and
earning and other remuneration of personnel engaged from aboard in connection with an investment.
The transfers referred to in subsection (1) shall be subjected to any payments, dues, fees, levies or any other similar obligation that is due in terms of such laws or regulations. The amount permitted for transfer under this section shall be the balance after deduction of the financial obligations referred to herein.
The market rate of exchange published by the Central
Bank of Sri Lanka prevailing on the date of transfer shall be applicable for the purpose of this section and in the absence of a market for foreign exchange, the rate to be used shall be the most recent exchange rate for the conversions of currencies into Special Drawing Rights.
Without prejudice to the foregoing, the equitable, non-discriminatory and good faith actions and measures taken to temporarily restrict the transfer of funds, out of Sri
Lanka, shall not be interpreted to mean a violation of this section, in the occurrence of the following events:-
serious balance of payment difficulties;
if movements of capital will cause serious difficulties for macroeconomic management;
bankruptcy, insolvency or the protection of the rights of the creditors;
the issuing, trading or dealing with securities;
criminal or penal offences and the recovery of the proceeds of crime; or
ensuring the satisfaction of judgments in adjudicatory proceedings.
The duration of the restrictions relating to transfer of payments stated in paragraphs (a) and (b) of subsection (4)
shall be applied only for a period that is absolutely necessary to remedy the balance of payments situation.