Don’t Fall For Fake Foreign Real Estate Riches: CBSL

COLOMBO (News 1st); The Central Bank of Sri Lanka (CBSL) has issued a strong public warning against advertisements promoting overseas property investments, particularly those targeting Sri Lankan resident individuals through print and social media.

According to the CBSL, these advertisements not only encourage unauthorized foreign investments but also offer guidance on obtaining foreign loans—both of which are prohibited under the Foreign Exchange Act, No. 12 of 2017.

The CBSL clarified the following key regulations:

Resident individuals are only permitted to invest in overseas immovable property using funds from their Personal Foreign Currency Accounts (PFCAs), and only up to a limit of USD 20,000 or its equivalent in another designated foreign currency.

Business Foreign Currency Accounts (BFCAs) cannot be used for such investments.

Obtaining foreign loans or financing from non-residents for any purpose, including property investments abroad, is strictly prohibited.

The Central Bank emphasized that any individual or entity involved in or facilitating such unauthorized foreign exchange transactions will face legal action under the FEA.

CBSL urged the public to remain vigilant and not be misled by these advertisements, which may appear legitimate but violate national financial regulations.