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Notices

Important notices

Upcoming changes to Withholding Tax (WHT) applicable for residents and non-residents of Sri Lanka

Based on  the 2022 interim budget passed in the Parliament on the 30th of August  2022, the below proposals will be effective subject to the legislation being issued to this effect in due course.

Accordingly, the changes are expected to come in to effect under Withholding tax (WHT) or Advanced Income Tax (AIT) with effect from 1st October, 2022

a) Making Advance Income Tax (AIT) or Withholding tax (WHT) mandatory on interest income

b) Considering WHT/AIT on Interest Income of individual taxpayers as a final payment

c) Deduction of AIT/WHT from Interest payments of both Resident and Non-resident persons at the rate of 5% with the exception for senior citizens with a relief up to LKR 1.5 million p.a., subject to the declaration being submitted to the Bank

The above is a factual presentation of the proposals as they were presented and we are yet to ascertain the specific details on any exemptions (excluding senior citizens accounts) applicable for any specific account types / persons.
Once the relevant legislation  is passed to this effect the Bank will be enacting the changes with immediate effect and will proceed to charge WHT accordingly and will be communicating the details regarding any other exemptions granted.

In the case of senior citizen deposit holders, a declaration (to be confirmed upon legislation being issued) should be submitted to obtain the benefit of the relief of interest income up to LKR 1.5 million per annum and the Bank will announce a deadline within which the declaration is required to be submitted. WHT charged on senior citizen’s interest income up to such deadline will be reversed in line with the details submitted via the aforementioned declaration.

Please note as defined by the Inland Revenue Act a “senior citizen” with respect to a year of assessment means an individual who is –

(a) a citizen of Sri Lanka during the year of assessment;

(b) resident in Sri Lanka for the year of assessment; and

(c) who is sixty years old or above at any time during the year of assessment.

* In the case where a declaration is not submitted to the Bank, the Bank will apply 5% WHT on the full interest payment earned on deposits held by senior citizens.

Thank you for banking with HSBC.

HSBC Credit Card interest rates revision

Dear Cardholder,

Please note that with effect from 1 September 2022, HSBC's Credit Card interest rates will be revised to 36% for both Purchases and Cash transactions. The new rate will be applicable to you from your next billing period.

eg.1) If the billing date is on 3 September, the new rate will be applicable from 4 September 2022.

     2) If the billing date is on 24 September, the new rate will be applicable from 25 September 2022.

Rate/Fee Type Purchase Transactions

Cash Transactions

HSBC Retail Credit Cards

36.00% p.a.

36.00% p.a.
Rate/Fee Type

HSBC Retail Credit Cards

Purchase Transactions

36.00% p.a.

Cash Transactions

36.00% p.a.

Important notice on proactive e-statement conversion

Given the current fuel shortages along with postal delays and postal services being deemed as non-essential, the bank will be proactively converting all customers on paper statements to e-statements from the month of August 2022, Receiving your statement via email is convenient, timely and uses no paper; This will improve your experience and avoid any negative impact due to statements not being received because of the prevailing conditions.

  • Customers who are on paper statements will be informed via SMS with notice of registration to e-statements.
  • Relevant e-statement is sent to the e-mail address registered with the bank along with password protected PDF file ensuring data privacy controls. 
  • Customers have the option to convert back to paper statements by calling the relevant customer service hotline or visiting the nearest branch.
  • Customers who do not raise any concerns will continue to receive e-statements after the e-statement conversion.
  • All customers who opt for paper statements will be subject to below charges w.e.f 30 August 2022.

charge as below

 

HSBC

Premier 

HSBC 

Advance

HSBC

Standard

E-statements 

FOC

FOC FOC

Hard copies - (Charge per statement)*

FOC

Rs. 200 Rs. 200

charge as below

 

E-statements 

HSBC

Premier 

FOC

HSBC 

Advance

FOC

HSBC

Standard

FOC
 

Hard copies - (Charge per statement)*

HSBC

Premier 

FOC

HSBC 

Advance

Rs. 200

HSBC

Standard

Rs. 200

For more details on the tariff click here.

Transactions effected in foreign currencies via HSBC debit cards

From 18 July 2022, debit card purchase transactions effected in foreign currencies through the VISA network will be converted into Sri Lankan Rupees at the USD-LKR currency selling rate of HSBC on the date the transaction is posted to customer’s account.

Click here to access daily currency selling rate of HSBC.

A fee of 3.5% will be levied by the bank on debit card foreign currency transactions to mitigate the impact of exchange rate movements.

Revision to Premier Air Miles conversion rate

In accordance with section 9.1-g and 9.7-e of the HSBC General Credit Card terms and conditions, due to the increase in foreign exchange rates HSBC Premier Credit Card Rewards programme air miles conversion ratio will be changed to 5:1, effective from 15th May 2022. i.e: 5 points will be equal to 1 air mile.

 

Suspension of HSBC’s Credit Card Balance Conversion Plan (CBC/Flexi Plans)

We are re-designing HSBC’s Credit Card Balance Conversion Plan (CBC/Flexi plans) programs. As such all promotions related to CBC/Flexi plans will be suspended with effect from 5 May 2022. However, you may convert transactions performed on or before 5 May 2022 to CBC/Flexi plan as per the existing Terms and Conditions We will keep you updated when this facility resumes.

 

Gazette notification applicable to Persons providing Export services Overseas & Sri Lanka

Please note that following the Gazette No. 2292/50 dated 12.08.2022, the mandatory requirement to receive service exports to Sri Lanka within 180 days remains unchanged. The above implies that the mandatory residual conversion requirement for Exporters of Services has been discontinued from 12 August 2022. Kindly note that all the service exporters are required to provide the necessary supporting documentation (i.e. Tax Identification Numbers (TIN), Invoice, etc.) for the remittances into their respective accounts, upon receiving the monthly SMS sent by the bank.

Operating instructions for the Incentive scheme on Inward Worker remittances

In line with the operating instructions Ref 33/04/012/0011/004 and subsequent circulars issued by the Central bank with an objective of encouraging more worker remittances, The Government of Sri Lanka has launched an incentive scheme which allows you to earn an additional LKR2/- for every dollar (USD) you earn through overseas employment when converting the foreign currency to Sri Lankan Rupees (LKR). This is applicable for all transactions from 28 December 2020.

Transactions which are eligible for the incentive.

  • All local transactions converted to LKR from a Personal Foreign Currency Account (PFCA) with proceeds from overseas employment.
  • All credits received favoring account holders of HSBC Sri Lanka being proceeds of Inward Worker Remittance from overseas employment to LKR accounts.
  • Over the counter foreign exchange currency note transactions being proceeds of Inward Worker Remittances from overseas employment.
  • All worker remittances or funds currently in PFCA accounts received via worker remittances (from overseas employment) at the point of conversion to LKR.

For this purpose a declaration must be submitted to the bank by the relevant individuals declaring their eligibility. Declaration can be accessed via the www.hsbc.lk/declarationform We kindly request you to complete the declaration form and the completed and duly signed form to be emailed to inwardremittanceformreply@hsbc.com.lk.

Special note: It is not mandatory for Sri Lankans working abroad to convert their remittances to LKR. Those who wish to convert the said earnings in to LKR would be eligible for the special incentive.

 

Further guidance could be found in the attached links.

The Gazette of the Democratic Socialist Republic of Sri Lanka >

Amendment Update on 1 January 2021 >

Amendment Update on 27 January 2021 >

Operating Instructions on 'Reimbursement of the Transaction cost of Inward Workers' Remittances – Effective 01 February 2022

CBSL Operating instruction >

Special notes

Inward remittances received in foreign currency and converted to LKR are eligible for a reimbursement of overseas bank charges up to a maximum of two remittances when sending money to Sri Lanka. LKR 1000/- per transaction will be credited by the 15th Calendar day of the following month effective from March 2022.

Sri Lanka residents who have received an overseas remittance will receive a SMS from the bank on the 1st working day of the following month. Please confirm your eligibly by the 5th working day via SMS IWT< SPACE > YES to 4774. If not, SMS IWT <SPACE> NO 4774 or Please contact your Relationship Manager or Branch Manager.

Limits on overseas transactions

We are currently experiencing a situation where clients looking to buy foreign currency exceed those looking to sell foreign currency into LKR. This requires customer demand to be managed via order management in line with customer fairness principles. However, for your convenience, transactions below the thresholds given will continue to be processed automatically.

Maximum weekly foreign currency spend (overseas and online) on HSBC credit and debit cards will be capped as follows.

Card Type Weekly amount
HSBC Premier
LKR 150,000
HSBC Rewards, Advance, Cashback Platinum,
Platinum, Gold
LKR 75,000

Maximum weekly foreign currency spend (overseas and online) on HSBC credit and debit cards will be capped as follows.

Card Type HSBC Premier
Weekly amount
LKR 150,000
Card Type HSBC Rewards, Advance, Cashback Platinum,
Platinum, Gold
Weekly amount
LKR 75,000

The week will commence from midnight every Sunday till 11:59 PM on the following Sunday. These caps will not apply for Medical, Insurance, Education, Airline and Lodging categories. However a limit of LKR 1,750,000 on a monthly cumulative basis will be applied across these categories.

System Downtime Notice

Good news! There are no downtimes scheduled. Our systems are all up to date. Watch this space for future updates.

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