Sri Lanka NRFC / RFC Foreign Currency Deposit Calculator

A Sri Lankan foreign-currency term deposit credits interest in the deposited currency on a quoted nominal annual rate, compounded at a chosen frequency. The mechanics are the same across NRFC, RFC, BFCA, and most SFCD schemes — only eligibility and permitted credits differ. The calculator applies the textbook compound-interest formula and exposes a simple-interest mode for at-maturity-credit deposits some banks offer on shorter tenors.

The two formulas

For periodic compounding, maturity value FV = P × (1 + r/n)^(n × t) where P is principal, r is the nominal annual rate as a decimal, n is the number of compounding periods per year (12 for monthly, 4 for quarterly, 2 for half-yearly, 1 for annually), and t is the tenor in years. For simple interest credited at maturity, FV = P × (1 + r × t). Interest earned is the difference between FV and P.

The effective annual yield EAY = (1 + r/n)^n − 1 collapses different compounding frequencies onto one number, which is the right basis for comparing two banks' offers — a 4.40% quote with monthly compounding edges out a 4.45% quote that only compounds at maturity over a 12-month tenor. The calculator runs both formulas internally and reconciles the answers via the EAY identity FV = P × (1 + EAY)^t before any result is rendered.

Why the LKR figure is shown but flagged

NRFC and RFC interest is paid in the deposit currency, not in LKR. The calculator multiplies the FCY result by a user-supplied LKR rate to give a familiar comparison point, but that rate is just a snapshot of today's level — at maturity you might convert at a stronger or weaker rate, or you might roll the deposit without converting at all. The LKR row is clearly labelled as conditional on your input rate. For currency-conversion cost modelling (Wise vs SWIFT vs Skrill vs Payoneer spreads), use the Freelancer USD-LKR calculator linked below.

Withholding tax — currently exempt

Under the Inland Revenue Act No. 24 of 2017 (as amended) First Schedule, interest accruing on foreign-currency accounts held with a licensed commercial bank in Sri Lanka is among the listed exempt amounts. Unlike LKR fixed-deposit interest — which has been subject to 10% withholding tax for resident depositors since the April 2025 re-introduction — FCY-deposit interest at NRFC, RFC, and BFCA accounts is currently paid gross. The calculator therefore shows interest as gross-equals-net. If a future Inland Revenue Amendment Act introduces WHT on FCY interest, the rate constant in the source module is updated and the page is re-verified within 48 hours.

Account-type eligibility (CBSL)

Eligibility is set by the Central Bank under the Foreign Exchange Act No. 12 of 2017. NRFC is for Sri Lankan citizens, dual citizens, and Sri Lankans holding permanent residency abroad. RFC is for Sri Lankan residents (including returnees) holding FCY earned from permitted sources. BFCA serves resident exporters and BOI enterprises and is subject to mandatory FCY-conversion rules currently in force. SFCD covers bespoke schemes with bank-specific lock-in and minimum-balance rules — confirm exact crediting with the offering bank. Switching account type in the calculator changes the eligibility note shown but not the math, because the underlying deposit mechanics are the same.

Edge cases handled

Three cases are worth flagging. (1) Zero or negative principal, rate, or tenor produce a specific validation message rather than a silent NaN. (2) Very large principals — up to ~Rs 1 billion in FCY — stay within IEEE-754 double precision; the cross-check identity will surface any rounding disagreement greater than one part per billion of principal. (3) One-month tenors at every compounding frequency converge to the same maturity (one compounding period = simple interest by definition); the calculator handles this without a special case because the math degenerates naturally.

Three reference scenarios cross-checked against the calculator. Plug each set of inputs in and the maturity number should match to the cent in your selected currency.

• CBSL — FAQs on Foreign Currency Accounts (NRFC / RFC / BFCA / SFCD eligibility and permitted credits)
• CBSL — Operating Instructions for Authorised Dealers under the Foreign Exchange Act
• Foreign Exchange Act No. 12 of 2017 (PDF) — statutory basis for FCY deposit accounts
• Inland Revenue Department of Sri Lanka — official site (Inland Revenue Act, First Schedule exempt amounts)

Account-type rules, permitted credits, and the WHT-exemption position were last cross-checked against the CBSL FAQs on Foreign Currency Accounts and the IRA First Schedule on 2026-05-17. Bank-specific rate quotes change weekly; the tool takes the rate as user input and does not hard-code any bank's tariff card.