How to Do International Offshore Banking in Sri Lanka?11 min read

How to Do International Offshore Banking in Sri Lanka?11 min read

Offshore banking has been a trending topic over the past couple of years, as individuals seek to transact foreign money and have their assets held abroad. 

Sri Lanka, located on the dividing line between India and Southeast Asia, has become a leading provider of offshore financial services for local and foreign clients. 

If you want to enjoy offshore banking facilities from anywhere in or outside Sri Lanka, this article will show you how to initiate offshore banking services in Sri Lanka through The Kingdom Bank.

Who Can Open an Offshore Bank Account in Sri Lanka?

Foreigners as well as Sri Lankan residents can open offshore bank accounts in Sri Lanka. Any citizen who earns money abroad from legitimate sources such as exports, work abroad or investment can open offshore accounts. 

Non-residents such as foreign nationals, NRIs (non-resident Indians) and PIO (person of Indian origin) cardholders can also establish offshore accounts to handle their funds and investment in Sri Lanka. Minors under 18 can create offshore accounts with their parents or guardians. 

Corporations and other legal entities controlled or controlled by eligible individuals can also open offshore accounts.

What Types of Offshore Accounts are Available in Sri Lanka?

Banks in Sri Lanka have many kinds of offshore accounts available depending on their client’s requirement:

Savings Accounts

Offshore savings accounts enable users to deposit and withdraw in different currencies, including US Dollars, Euros, British Pounds, and many others. Depending on the bank interest rates, interest is earned on the deposited amount.

Current Accounts

Offshore current accounts are suitable for business transactions and general spending. Money is deposited, withdrawn and sent out very easily using wire transfers, debit cards and online banking. Overdrafts are also allowed on eligible accounts.

Fixed Deposit Accounts

Our clients can also deposit money with a fixed tenor of 1 month to 5 years and earn better rates on offshore fixed deposits. Early withdrawals are permitted but subject to fees.

Multi-Currency Accounts

Offshore banks provide multi currency accounts that permit maintaining balances in 3-4 major foreign currencies as well as the Sri Lankan rupee for customers who require multi currency accounts.

NRE/NRO Accounts

Non-resident Indians love to open Non-Resident External (NRE) and Non-Resident Ordinary (NRO) rupee accounts to track their funds abroad. NRE accounts earn tax free and repatriable interest.

Banks such as The Kingdom Bank offer a comprehensive range of offshore bank accounts for saving, investing and business use. Online, clients select the appropriate type of account.

What are the Benefits of Offshore Banking in Sri Lanka?

There are many reasons why offshore banking in Sri Lanka is a desirable option:

• Tax benefits: Interest on offshore accounts is not subject to Sri Lankan income tax. Also, the capital gain arising from investments is not taxed, resulting in significant tax deductions.
• More attractive rates: Interest rates for offshore deposits are usually higher than those in the local market, thus enabling clients to earn maximum returns on their foreign accounts.
• Regulatory advantages: Offshore accounts provide a means of holding money away from the local banks and are not subject to Sri Lankan bank interest rates or deposit policies.
• Diversification of assets: Clients are able to diversify their portfolio across multiple markets by investing in multiple currencies with the use of a single offshore account.
• Wealth management: Offshore banks offer portfolio management, investment advisory, trust and succession planning services to HNIs and businessmen.
• International access: The funds in the offshore accounts can be accessed easily online and via mobile banking throughout the world for payments, transfers and other financial transactions.
• Distinction and anonymity: Offshore accounts provide greater financial anonymity compared to the home-based accounts that may also have optional features such as numbered accounts.

Through the offshore bank account with a trusted player such as The Kingdom Bank, Sri Lankans and foreigners alike can enjoy these diverse advantages in both their banking and investment needs.

What Documents are Required to Open an Offshore Account in Sri Lanka?

The procedure of opening an offshore bank account involves filing vital Know Your Customer (KYC) documents to check clients’ identity and money sources in compliance with international anti-money laundering guidelines. These are the basic documents that you should normally submit:

• ID (Passport or other valid photo identification)
• Recent passport size photographs
• Address attestation for permanent and current addresses.
• Income/employment documents (salary checks, income tax returns, business papers)
• Reference letters from bankers
• Source of wealth declaration
• Specimen signature card

There are other requirements for non-resident customers, such as proof of overseas address, visa copies, and reference from a foreign bank. 

Enterprises and companies have to submit forms such as certificates of incorporation, memorandum of association, director resolution to open an account and so on.

Companies such as The Kingdom Bank have made the account opening process digital and make it accessible for NRI/NRE customers who open accounts through online documents. This makes offshore banking in Sri Lanka very easy.

Which Banks in Sri Lanka Offer Offshore Banking Services?

Several of Sri Lanka’s most prominent local and foreign banks offer complete offshore banking services through their overseas branches and subsidiaries. 

But The Kingdom Bank is also one of the best-known offshore banks in the nation:

• The Kingdom Bank has an FSU license from Dominica and services an international clientele through its online and mobile banking.
• It provides multiple offshore bank accounts, deposits, payment options and wealth management services to HNIs, companies and businesses around the world.
• Customers can open multi-currency accounts instantly via an online paperless KYC, without traveling to Sri Lanka.
• High security measures, such as two-factor authentication and encryption, protect the funds.
• There are a large number of experienced relationship managers and advisors available 24/7 through phone, chat and email.
• Interest and fees at attractive rates make The Kingdom Bank a viable choice for global banking needs.

Featuring robust regulation and business friendly policies, Sri Lanka is quickly becoming an offshore financial centre for the region. 

The Kingdom Bank takes advantage of the geographical location and reputation of the country to offer leading digital offshore banking services to clients around the globe.

The Kingdom Bank offshore banking provides both residents and non-residents the ability to diversify wealth globally, generate returns, gain global reach and enhance privacy and security. 

To know more about opening an offshore bank account at The Kingdom Bank for your foreign investment requirements, visit The Kingdom Bank or contact a representative now.