NW Biz : The whole world came to a halt when the pandemic broke out last year. However, with the help of vaccination and strategic financial movements, many developed countries are gradually recovering, while the developing countries still struggle. Unfortunately, Sri Lanka belongs to the latter kind.
While dealing with the pandemic, Sri Lanka is also suffering from a severe foreign exchange crisis at both domestic and external levels. The Sri Lankan Rupee has lost more than 20 per cent of its value against the United States Dollar since 2019. In August 2021, foreign exchange reserves for Sri Lanka was 3,550.7 million US dollars. It fell gradually from 6,666.3 million US dollars in September 2020 to 3,550.7 million US dollars in August 2021.
Due to this, the government of Sri Lanka has been imposing very intense rules and regulations on local banks, to limit the exchange of dollars. This makes a direct impact on every Sri Lankan who earns in dollars, especially if they’re living in Sri Lanka. At the moment, the authorised currency exchange services offer a high rupee value for the dollars, while the local banks registered under the Central Bank of Sri Lanka are offering a comparatively low value. In the latter, it varies from Rs. 235 to Rs. 240, while the former offers around Rs. 195 – Rs. 199. Furthermore, the foreign currency cards issued by local banks are subjected to many restrictions, including purchase and withdrawal limitations.
This whole situation has opened many conversations and opportunities among the Sri Lankan, dollar earning community, to the point that they often seek ways to get the best value return for their hard-earned dollars. Most countries like Canada, Australia including countries in the gulf region offer a meagre 1-2%, which means accumulated savings do not grow in value unless invested in other securities or business ventures. Which brings to perspective, Softlogic Life’s recently unveiled new product that offers Sri Lankans living overseas a life insurance cover plus a dollar-based savings plan with a 6.5% guaranteed annual return on every dollar saved.
Given the current financial climate, Sri Lanka is in solutions such as these, which are an encouragement for many financial institutions to innovate, as well as an opportunity to bring in more dollars to Sri Lanka and help its economic growth.
The offering that has been introduced by Softlogic Life is open to any Sri Lankan domiciled overseas, dual citizens and even those living here in Sri Lanka, as long as their income is earned in dollars (USD).
In contrast to interest rates of most overseas financial markets, the 6.5% guaranteed annual return that the customer gets here is a huge return on investment for their hard-earned savings. And while it’s only natural to question what happens to the savings you put in, Softlogic Life assures that all received USD savings will be invested in governments securities and bank deposits, plus they have also confirmed that this product is in accordance with Sri Lanka’s Forex regulations.
While ensuring the wellbeing of Sri Lankans at a global level, efforts such as these are commendable and integral to the country’s growth as we move into the new year. (NewsWire Business)