📊 CBSL Maintains $ 750,000 Outward Investment Cap; Targets 2027 Control Phase-Out

The Central Bank of Sri Lanka (CBSL) has extended the temporary $ 750,000 cap on outward investments for another six months under Foreign Exchange Regulations No. 01 of 2026, targeting a complete end to crisis-era capital controls by 2027. • Key Investment Limits & Caps: • Listed Companies: Converted rupee investments capped at $ 750,000 or 20% of net assets (whichever is lower). • Non-Listed Companies: Capped at $ 200,000. • Account Holders: Up to $ 500,000 for BFCA and $ 225,000 for PFCA. • Banks & Finance Companies: Exempt from caps, subject to regulatory oversight. • Key Exceptions & Export Incentives: • Higher Investments: Investments up to $ 2 Mn allowed if funded via foreign borrowing (minimum 5-year tenor) or offshore equity. Special approvals granted above $ 2 Mn for expansions in countries like Kenya and Bangladesh. • Exporters: Allowed an extra 10% allowance above the cap using repatriated and converted export proceeds. • Instrument Restrictions: Outward capital remains strictly restricted to ordinary shares to ensure business control rather than portfolio investments. • Market Trends & Performance: • Outward investment flows stood at $ 58 Mn in 2019, dropped sharply through 2022, and recovered post-June 2023. • Year-to-date outward investment reached $ 26 Mn, with full-year projections estimated at $ 35 Mn to $ 40 Mn.