Sri Lanka promises 'no questions' if Swiss bank cash brought back

Sri Lanka Friday asked citizens holding Swiss bank accounts to redeposit the cash in their home country and promised there would be "no questions asked" if they do.

Following a slump in official reserves, the Sri Lankan government is keen to get foreign cash, shoring up its reserves and stabilising the local currency.

Finance Minister Ravi Karunanayake said Sri Lankans could deposit their savings in local banks which offer rates several time more than those offered in international money markets.

"Sri Lankans could be holding about six to eight billion dollars in Swiss accounts," Karunanayake told reporters in Colombo. "We are telling them to bring that money and deposit in any banks here. There will be no questions asked."

The plea comes after a number of Swiss banks told Sri Lankan depositors to take out their money and close their accounts, as part of restructuring moves.

The Sri Lankan rupee has depreciated by over 6.0 percent against the dollar so far this year and official reserves fell to $6.88 billion by the end of July, from a peak of $9.18 billion in August 2014.