BB urged to ease repatriation rules for foreign investors

The national committee on Repatriation of Sale Proceeds in Private and Public Limited Companies has recommended that the Bangladesh Bank significantly raise the existing limit on foreign investors' capital and profit repatriation without requiring prior central bank approval.

The recommendation, aimed at allowing foreign investors to repatriate more profit and capital to their home countries easily, was submitted on Tuesday to Bangladesh Bank Governor Ahsan H Mansur, Bangladesh Investment Development Authority (Bida) Executive Chairman Chowdhury Ashik Mahmud Bin Harun, and other senior officials, Bida said in a press release.

Under current rules, foreign investors may remit up to Tk10 crore – or the equivalent in foreign currency – to their parent companies through commercial banks without Bangladesh Bank's approval.

Formed on 29 September on the instructions of the Bangladesh Bank governor and the Bida executive chairman, the national committee was tasked with reviewing challenges related to repatriation and proposing a modern, efficient framework.

The committee has now finalised a comprehensive reform package aimed at making Bangladesh's repatriation regime simpler, more dynamic and globally aligned. The committee – comprising representatives from Bida, the Bangladesh Bank, UNDP and the private sector – held multiple rounds of technical discussions and consulted valuation experts, merchant banks, commercial banks, and legal advisers before finalising the recommendations.

The committee's major proposals include significantly raising the repatriation approval threshold, allowing most cases to be processed by commercial banks without Bangladesh Bank's prior authorisation.

It also includes introducing service level agreements to ensure time-bound repatriation services by both the central bank and commercial banks.