The Parliamentary Committee on Public Finance (COPF) has approved the Gazette notification issued on the updated guidelines on outward investments, introducing increased thresholds for local companies to invest overseas and streamlining processes to facilitate cross-border expansion.
Under the new framework, the investment limit for listed companies has been raised from USD 500,000 to USD 750,000, and the limit for unlisted companies has been increased from USD 150,000 to USD 200,000.
Companies seeking to invest beyond these limits can now borrow from foreign sources up to USD 2 million, with Central Bank oversight, and any investment exceeding USD 2 million will require special approval.
All outward investments must be routed through a designated Outward Investment Account (OIA) in Sri Lanka before funds can be transferred abroad. The Central Bank of Sri Lanka has granted general permission to licensed banks to facilitate these transactions swiftly, ensuring companies can access opportunities without undue delays.
Officials who attended the meeting emphasized that these reforms aim to encourage Sri Lankan businesses, particularly in the technology and software sectors, to pursue global expansion while maintaining oversight of capital flows. The changes come amid concerns that previous restrictions were prompting some firms to relocate overseas.
Speaking on the updated guidelines, Central Bank representatives assured that short-term supplier credit (DA terms) remains classified as a current account transaction, with no additional restrictions.
The Order under Section 22 of the Foreign Exchange Act, No. 12 of 2017, published in the Gazette Extraordinary No. 2441/14 of 18.06.2025, was approved after having been considered at a meeting of the COPF, Chaired by MP Harsha de Silva, recently (29 July). (Newswire)
