Finance Minister Ravi Karunanayake declined to reveal the identity of the investor. But he said the investor was Belgian and was working with a Sri Lankan partner.
Financial experts said bringing in so much money from an individual investor was fraught with risks. Karunanayake has already liberalised dollar remittances from foreigners into the country.
“This allows room for money-laundering. Black money could easily come through this,” said Sirimal Abeyratne, an economics professor at the University of Colombo.
Karunanayake said anybody who felt black money was coming in could take up the matter in the courts.
A senior Finance Ministry official said it was the responsibility of the remitting bank in Europe to check the source of funds and know their customers.
“Sri Lanka will not question any investors who want to remit the money,” the official said.
The first tranche of $500 million from the Sri Lankan investor’s partner was deposited on 26 December, and the second is expected to arrive sometime this month. So far, the country has got $1.5 billion from such deposits.
The deposit has no lock-in period and the Government would allow withdrawals at any time.
Is this the well known 'Soros trap' ?