Tepid response for Special Deposit Account scheme

• Attracts only US$ 87mn since launch  

The Special Deposit Account (SDA), which was launched in April to seek assistance for the national effort to overcome the effects of COVID-19 outbreak in Sri Lanka has attracted an unimpressive US$ 86.9 million during the three-month period.Central Bank Governor, Prof. W. D. Lakshman yesterday said that the trend seen so far has not been promising.  

The government in consultation with the Monetary Board of Central Bank introduced the SDA to attract foreign funds to the country by offering higher interest rates, in particular targeting Sri Lankan diaspora across the world. 

Sri Lanka’s external account has come under pressure due to impacts stemming from the COVID-19 pandemic while the country is facing a record external debt servicing due this year. The Central Bank stressed that the banks have been instructed to follow the due diligence process as per the Foreign Exchange Act (FEA) in opening and maintaining SDAs.