08 April 2020 – Government offers Special Deposit Account in designated foreign currencies to raise funds for COVID-19 and recession response and avoid foreign exchange crisis

Type of Intervention: Regulation
Sectors Involved: Finance/Economy
Intervention Categories: Legal and policy; New initiatives
Level of Jurisdiction: Supranational
Lead People/Agency: Banks in Sri Lanka

Overview: Invitation to Sri Lankan individual residents, Dual Citizens, and citizens of other states who are Sri Lankan in origin to open and maintain an account titled “Special Deposit Account” in the form of Term Deposits either in any designated foreign currency or in Sri Lanka Rupees with an authorized dealer in Sri Lanka.
Full details here: http://documents.gov.lk/files/egz/2020/4/2170-04_E.pdf

Type of Justification: Advice of INTERNAL government advisory committee or group
Source of Evidence or Justification: Several reports indicate the crisis the country is likely to face
Evidence/Justification: Due to looming crisis in foreign exchange and reserves, and the expected economic recession.