The Government, in consultation with the Central Bank of Sri Lanka, announced two measures today (13) to encourage the opening of Special Deposit Accounts (SDAs), which were introduced on 08 April to encourage the inflow of much needed foreign exchange to an economy battered by Covid-19 and deprived of revenue streams. The Bank stated it has received deposits worth approximately US$ 87 million so far, which it termed a “favorable response” although it is widely seen as a lukewarm response to the government’s invitation. The first measure is to expand the sources of funding SDAs. Therefore, any person who has arrived in Sri Lanka from overseas on or after 01 January 2020 can open SDAs with any Authorized Dealer on or before 07 October 2020, out of foreign exchange legitimately acquired and brought into Sri Lanka by such person subject to two conditions. First is that a declaration be made to the Sri Lanka Customs at the port of arrival where the amount of such foreign exchange exceeds USD 15,000 or an equivalent amount in any designated foreign currencies. Second is that a declaration be made to the relevant Authorized Dealer where the amount of such foreign exchange is equal or less than USD 15,000 or an equivalent amount in any designated foreign currencies. Furthermore, any person in, or resident in, Sri Lanka can open SDAs with any Authorized Dealer on or before 07.10.2020, out of foreign currency notes in his possession up to the limit of USD 15,000 and subject to such terms and conditions of the prevailing Regulations and Orders, subject to a declaration on the source of funds to the Authorized Dealer. In this regard, the amount of foreign currency that can be retained by a person in, or resident in Sri Lanka in his possession has been increased from USD 10,000 to USD 15,000 with effect from 01.07.2020. The second goal is to allow SDA holders to obtain loans from Authorized Dealers against SDAs, which covers residents in Sri Lanka Rupees and non-resident SDA holders who are eligible to obtain loans as per the prevailing regulations.