Bangladesh may soon see a major shift in how foreign investors send their profits and capital back to their home countries, as a national committee has finalised an ambitious reform package aimed at simplifying and modernising the country’s repatriation regime. The proposed changes are expected to make the process faster, more transparent, and better aligned with global standards—an important factor in attracting greater foreign direct investment.
On Tuesday, the committee submitted its formal recommendations to Bangladesh Bank Governor Ahsan H Mansur, Bangladesh Investment Development Authority (BIDA) Executive Chairman Chowdhury Ashik Mahmud Bin Harun, and other senior officials. The details were later confirmed in a press release issued by BIDA.
Under the existing regulations, foreign investors are allowed to repatriate up to Tk10 crore—or an equivalent amount in foreign currency—without seeking prior approval from the Bangladesh Bank. While this limit was once considered sufficient, the committee argues that the threshold no longer matches the scale of modern cross-border investment, particularly in sectors experiencing rapid expansion.
Formed on 29 September under instructions from both the Bangladesh Bank Governor and the BIDA Executive Chairman, the committee was tasked with reviewing procedural bottlenecks and recommending a more efficient and investor-friendly framework. Its members represented BIDA, the central bank, UNDP, and the private sector, bringing together a wide range of technical and practical expertise.
Over the past several weeks, the committee engaged in multiple rounds of technical discussions and consultations with valuation professionals, merchant banks, commercial banks, and legal experts. These extensive deliberations helped shape a comprehensive reform package that addresses the concerns frequently raised by international investors.
A key component of the proposal is to substantially increase the repatriation ceiling that foreign companies can access without central bank approval. If approved, the majority of repatriation cases would be processed directly through commercial banks. This is expected to significantly reduce bureaucratic delays and improve the ease of doing business in Bangladesh.
Another important recommendation is the introduction of service level agreements (SLAs) between Bangladesh Bank and commercial banks. These agreements would ensure that repatriation requests are handled within strict time limits, giving foreign investors more certainty and reducing the risk of financial disruptions caused by administrative delays.
Economic analysts note that such reforms could substantially bolster Bangladesh’s appeal to global investors by creating a more predictable and efficient environment for capital movement. A modernised repatriation system would not only enhance investor confidence but also encourage multinational companies to expand their operations in the country.
If adopted, the proposed reforms could mark a significant milestone in Bangladesh’s ongoing efforts to strengthen its investment climate and integrate more robustly into the global financial system.