For Sri Lankans abroad, rupee balances left in bank accounts in Sri Lanka are capital that could be working harder. These funds can be invested with LYNEAR, with the returns remitted to your country of residence.
Non-Resident Rupee Account (NRRA) Once you take up residence abroad, your existing rupee accounts with authorized banks are designated NRRAs. You may hold several. The NRRA is the account from which your investments are made and into which their proceeds are credited.
Capital Transaction Rupee Account (CTRA) Formerly the Non-Resident Blocked Account (NRBA). The CTRA is the conduit for all outward remittances. Each individual may hold only one, registered with the CBSL, for migration-related capital transfers and other approved remittances.
Both accounts operate under regulatory supervision.
Regulation No. 02 of 2021 allows emigrants to deploy NRRA funds across a broad range of assets, including units in unit trusts, government securities, term deposits, listed debt securities, shares and property. LYNEAR has an array of unit trust funds that fall under this category.
The regulations draw a clear distinction between income and capital:
| Type of remittance | Channel | Subject to the migration allowance |
|---|---|---|
| Income: interest, dividends, rental income | CTRA or Emigrants Remittable Income Account | No |
| Capital proceeds: sale or redemption proceeds, including capital gains | CTRA | Yes |
The distinction matters. Income generated by your investments in Sri Lanka may be remitted in full without drawing on your allowance, while the repatriation of capital is governed by it.
Emigrants aged 18 and above may convert rupees into foreign currency and remit capital within limits prescribed by the CBSL:
The allowance may be claimed on proceeds from assets acquired while resident in Sri Lanka or purchased with Sri Lankan rupee account funds, and on inheritances and gifts from immediate family members. Funds held in a PFCA or IIA are excluded.
The Inward Investment Account is the designated gateway for foreign capital entering Sri Lanka. Held with a licensed commercial bank, it offers a regulated, transparent channel for investment, with full repatriability of both principal and returns.
| Key consideration | At a glance |
|---|---|
| Account required | An Inward Investment Account (IIA) |
| Where it is held | A licensed commercial bank in Sri Lanka |
| Regulatory oversight | Regulated and monitored by the Central Bank of Sri Lanka |
| Remote account opening | Available, with no travel to Sri Lanka required |
| Repatriation | Capital and income may be remitted abroad at any time |
An IIA may be opened by:
Whether you are bringing funds into Sri Lanka through an IIA or mobilizing rupee savings held in an NRRA, LYNEAR Wealth will guide you through every stage, from establishing the right accounts to repatriating your returns.
Begin the conversation with our team at [email protected]
