• Service: Tax, Global Mobility Services, International Tax
  • Type: Regulatory update
  • Date: 8/17/2014

Sri Lanka - Foreign exchange rules, FATCA compliance  

August 15:  The Exchange Control Department of the Central Bank of Sri Lanka set out measures to relax the foreign exchange control rules.

This change is viewed as demonstrating a commitment to enhancing Sri Lanka’s global competitiveness.

FATCA compliance

Sri Lankan banks have been directed to comply with the U.S. Foreign Accounts Tax Compliance Act (FATCA) regime.

The government of Sri Lanka has not entered into an intergovernmental agreement with the United States. However, the Central Bank has directed banks to comply with the FATCA regime by entering into foreign financial institution agreements with the U.S. tax authority (IRS).

The list of registrants published on the IRS FATCA website shows that almost all banks in Sri Lanka are registered for FATCA.

Read a 2014 report prepared by KPMG International: Sri Lanka – foreign exchange rules relaxed, FATCA update

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