## A technical assistance (TA) mission on external sector statistics (ESS) was conducted for the Central Statistical Office (CSO) of Saint Lucia during October 24–28, 2022.

## Source details

**Canonical URL:** [A technical assistance (TA) mission on external sector statistics (ESS) was conducted for the Central Statistical Office (CSO) of Saint Lucia during October 24–28, 2022.](https://www.imf.org/-/media/files/publications/tar/2024/english/tarea2024007.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/tar/2024/english/tarea2024007.pdf.md)
- [Structured JSON version](/-/media/files/publications/tar/2024/english/tarea2024007.pdf.json)

---

### Mission objectives and participation
- Purpose: Improve key source data to strengthen compilation of the balance of payments and the international investment position (IIP) statistics; provide practical advice during review of provisional 2021 balance of payments and IIP statistics (released December 2022).
- Participants: Central Statistical Office (CSO) compilers, Eastern Caribbean Central Bank (ECCB) official participated.

### Summary findings on provisional 2021 balance of payments and IIP
- Net errors and omissions (NEOs) for 2021 were positive and higher than those estimated in March 2022.
- The deficit in the current account was significantly higher due to lower travel credits not fully offset by financial account net inflows.
- Response rate to balance of payments surveys is systematically low for:
  - accommodation establishments
  - direct investment enterprises
- Need identified: designation of an official in charge of validation/editing of balance of payments surveys at the CSO to better complement the ECCB compilation process.
- Compilers agreed to review metadata before dissemination with December 2022 data.

### Action Plan — priority actions, target dates, and status notes
- Overarching outcome: Source data adequate for compilation of balance of payments and IIP statistics.
- Priority recommendations and target completion dates:
  - June 2023: Follow up with the CED and the fuel and transshipment facility on the provision of consistent monthly volume data on imports and re-exports of fuel for 2019–2021. The CED is expected to use data provided by the fuel and transshipment facility to compare customs records and follow up with oil importers when inconsistencies are detected. — Responsible: CSO.
  - December 2022: Disseminate 2021 balance of payments and IIP statistics on the ECCB and CSO websites and report the data to the IMF’s Statistics Department (STA). — Responsible: CSO and the ECCB. 1
  - December 2022: Review the metadata and report to STA with the 2021 balance of payments and IIP data. — Responsible: CSO and the ECCB. 2
- Additional action plan items and target dates (selected):
  - January 2023: Collaborate with the Tourism Board to re-start the visitor expenditure surveys (VESs) sent by email to visitors. (H)
  - June 2023: Follow up with the Citizenship by Investment Program (CIP) Unit on the stocks and deposits of the escrow accounts established outside Saint Lucia for the funds due from real estate investments under the CIP program. (H)
  - June 2023: Contact the Inland Revenue Department (IRD) to clarify the implications of the amendments to the International Business Companies (IBCs) Act regarding the declaration of taxes and the filing of financial statements of the IBCs to the IRD. (H)
  - April 2023: Compile debt securities issued in the Regional Government Securities Market (RGSM) according to the residence of the holders. (H)
  - June 2023: Designate an official dedicated to the validation process of the balance of payments surveys who can better complement the compilation process of the ECCB. (H)
  - December 2022: Publish quarterly selected balance of payments indicators from the first quarter of 2019 on the ECCB and the CSO websites; add an explanatory note to the series of quarterly imports of goods. (H)
  - December 2022: Develop an advance release calendar for ESS and publish on the ECCB’s website, as well as on the website of the CSO. (H)
  - April 2023: Disseminate backcasted balance of payments series for 2000–13 in coordination with the ECCB. (H)
- Footnotes on completion status from the Action Plan:
  - 1 The recommendation was partially achieved after the end of the mission. The publication on the CSO’s website is pending.
  - 2 The recommendation was achieved after the end of the mission.

### Trade in goods — issues and recommendation
- Findings:
  - Customs and Excise Department (CED) provides exports and imports including free trade zones and warehouses, but:
    - Imports of fuel are reported to the CED without a determined frequency and with significant lags.
    - CED reports to the CSO have deficiencies: ECCB indicated fuel import data for 2019 show a significant decrease inconsistent with positive economic expansion.
    - Recent monthly data received by the CSO show inconsistent figures — significantly high in some months and too low in others.
    - CED recordings correspond to the moment when duties are paid, which can be over a year after fuel was imported because importers lack a peremptory date to provide declarations and pay duties.
  - The fuel and transshipment facility:
    - Provides fuel storage to customers who pay a fee; fuel is stored in tanks before internal sale or re-export.
    - Has granular monthly data on volume of fuel stored and offered to provide these data to the CED to verify importer reports.
  - CED staff in charge is new and willing to review recording processes and consistency of volume data.
- Recommendation:
  - CSO to follow up with the CED and the fuel and transshipment facility on the provision of consistent monthly volume data on imports and re-exports of fuel for 2019–2021. The CED is expected to use data provided by the fuel and transshipment facility to compare customs records and follow up with oil importers when inconsistencies are detected.

### Travel credits — data sources, changes, and recommendation
- Findings:
  - Travel credits estimated using:
    - number of visitors and length of stay provided by the Tourism Board of Saint Lucia,
    - per-capita average daily visitor expenditure from Visitor Expenditure Surveys (VESs).
  - Since the COVID-19 pandemic:
    - Face-to-face VES was not conducted; substituted by surveys sent by email which obtained a good response rate.
    - Since August 2022, due to certain legal restrictions, surveys are requested through a QR code and response rate has been significantly reduced.
    - The Board has managed to lift the restrictions to carry out VESs via email and plans to continue email surveys.
    - CARTAC TA will further assist to assess data quality of these email surveys (e.g., sampling and methodology to derive estimates for relevant visitor arrival population categories).
    - Prior to the COVID-19 pandemic, the Board had one of the most robust in-person visitor surveys in the ECCU region.
  - While reviewing provisional 2021 balance of payments, a significant reduction in travel credits from previous estimates (disseminated March 2022) was observed.
    - Number of visitors by category, length of stay, and average daily expenditure were estimated by the ECCB previously; these estimates were replaced by data received from the Tourism Board.
    - BPM6 Compilation Guide good practice: compiler should play an active role in development and monitoring of visitor surveys conducted by other agencies, including questionnaire design, revision, and validation of data received.
- Recommendation:
  - Collaborate with the Tourism Board to restart the VESs sent by email to visitors.

### Direct investment and the Citizenship by Investment Program (CIP)
- Findings on data collection:
  - Direct investment data sources include balance of payments surveys and administrative/regulatory reports such as financial statements from the Inland Revenue Department (IRD), the CIP Unit, and Invest St. Lucia.
  - The CIP Unit records land sales to nonresidents made under the CIP.
- CIP investment types and amounts:
  - One-time donation to National Economic Fund (US$100,000).
  - Real estate Investment (US$300,000 in hotels, resorts, boutiques).
  - COVID-19 Government Bonds (US$250,000). Limited Time Offer until December 31, 2022.
  - Government bonds (US$500,000) with a five-year holding period.
  - Direct business investment (US$3,500,000) on enterprise projects.
- Classification of CIP-related payments in balance of payments/IIP:
  - Application and processing fees: government services (services account, credits).
  - Due diligence fees paid by nonresidents to the CIP Unit: other business services (credits) — domestic due diligence businesses used.
  - Due diligence services paid by the CBI Unit to international due diligence businesses (nonresidents): other business services (debits).
  - Contributions to the National Economic Fund: capital transfers of the general government (credits).
  - Contributions for investment projects: direct investment liabilities in the financial account.
- Special note on escrow accounts:
  - Statutory Instrument No. 48 of 2019 Escrow legislation for real estate developers allows funds due to the government of US$300,000 per application to be established by a registered and regulated bank outside Saint Lucia.
  - Under the legislation, developer (resident) can establish escrow accounts on a registered and regulated bank outside Saint Lucia (nonresident).
  - Compilers request information on stocks and deposits of these escrow accounts abroad to be included in the balance of payments and IIP under other investment assets, currency and deposits.
- Recommendation:
  - Follow up with the CIP Unit on the stocks and deposits of the escrow accounts established outside Saint Lucia for the funds due from real estate investments under the CIP program.

### Offshore enterprises and Special Purpose Entities (SPEs)
- Findings:
  - International Business Companies Act regulates incorporation and related matters; companies must have a registered agent and registered office; only that information is public.
  - Amendment: all international business companies (IBCs) incorporated after January 1, 2019, are deemed resident, not restricted from doing business with residents, and subject to the provisions of the Income Tax Act.
  - Mission recommended consultation with the IRD on implications of amendments regarding declaration of taxes and filing of financial statements of these companies to the IRD.
- Recommendation:
  - Contact the IRD to clarify the implications of the amendments to the IBCs Act regarding the declaration of taxes and the filing of financial statements of the IBCs to the IRD.

### Financial Services Regulatory Authority (FSRA) — scope and licensed entities
- The FSRA regulates international banks, international insurance companies, and international mutual funds. These institutions provide financial services to nonresidents of Saint Lucia.
- There are 11 international banks, 32 international insurance companies with different license types, and seven international mutual funds in Saint Lucia.
- A special fund has been set up at a domestic Bank called the Saint Lucia National Economic Fund, to receive all investment amounts made to the National Economic Fund (Saint Lucia National Economic Fund Act No.18 of 2019).
- The governing body is the Saint Lucia National Economic Fund Board.
- Investment amounts per application for a real estate project go into an escrow account managed by an appointed escrow agent for the developer.
- According to Statutory Instrument No. 48 of 2019, if an escrow account cannot be established in Saint Lucia, it is possible to establish an escrow account by a registered and regulated bank outside Saint Lucia.
- International Business Companies (IBCs) tax and reporting provisions:
  - According to the IBCs Act (section 109), the IBCs could elect to be exempted from income tax or to be liable to income tax on the profits and gains of the IBCs at a rate of one percent.
  - A company that elects to be exempt from tax under section 109 is not required to file any tax returns, but those that elect to pay tax must file an annual tax return to the registered agent.
  - According to the Income Tax Act, the companies established under the IBCs Act are exempt companies.
- Special Purpose Entities (SPEs) and data access:
  - The CSO does not collect specific data on SPEs.
  - The FSRA indicated that there are approximately 3,000 IBCs incorporated in Saint Lucia, which could be classified as SPEs.
  - The FSRA receives only the financial statements of the international financial institutions; due to legal restrictions they are not allowed to share the information with the CSO or the ECCB.

### High-frequency indicators (balance of payments)
- ECCB work on collection of high-frequency indicators to improve periodicity and timeliness.
- ECCB intended to publish quarterly indicators for all member economies before December 2022.
- Indicator table includes data on:
  - transactions in goods (imports and exports),
  - services (visitor expenditure, CIP fees recorded under government goods and services),
  - primary income (central government interest payments),
  - secondary income (remittances and current grants),
  - capital account (official capital grants and CIP-related flows),
  - financial account (deposit-taking institutions and government transactions),
  - and international reserves.
- Mission warned about challenges for the registration of monthly fuel imports, which could lead to important changes in the published data of total quarterly imports; recommendation to add explanatory notes to the indicators.
- Recommendation:
  - Publish quarterly selected balance of payments indicators from the first quarter of 2019 on the ECCB and the CSO websites. Add an explanatory note to the series of quarterly imports of goods.
- Note: The development of these indicators is an initial step towards the development of quarterly balance of payments and IIP.
- Note: The indicators were published on the ECCB’s website after the end of the mission.

### Metadata accessibility (BOP and IIP)
- Balance of payments and IIP metadata were not disseminated.
- Preliminary metadata Excel files were completed with the CSO and the ECCB during previous missions.
- The information required to answer the balance of payments and IIP metadata questionnaires through the STA Integrated Collection System (ICS) platform is available.
- ECCB work program considered dissemination of the metadata for all the ECCU member countries with the 2021 balance of payments and IIP revision.
- The dissemination of an advance release calendar for ESS was agreed with the ECCB.
- Recommendations:
  - Review the metadata and report to STA with the 2021 balance of payments and IIP data.
  - Develop an advance release calendar for ESS and publish on the ECCB’s website, as well as on the website of the CSO.

### Review of historical balance of payments and IIP (backcasting)
- Recommendations from previous TA missions regarding backcasting for 2000–2013 of the BPM6-based balance of payments and IIP are pending.
- Finalization of the backcasting of the time series for 2000–2013 in coordination with the ECCB has been postponed to April 2023.
- Recommendation:
  - Disseminate backcasted balance of payments series for 2000–13 in coordination with the ECCB.

### Provisional 2021 balance of payments (mission review) — detailed points and recommendations
- Reviewed by mission as prepared by ECCB and CSO compilers.
- NEOs for 2021 are positive and higher than those estimated in March 2022.
- Current account deficit significantly higher due to lower travel credits not fully offset by financial account net inflows.
- Source data included most administrative sources and balance of payments surveys, but survey response rate was low.
- Compilers agreed to continue following up with nonrespondents to the balance of payments surveys.
- Need for an official at the CSO dedicated to validation/editing of balance of payments surveys.
- CSO business registry project ongoing to improve national accounts and ESS; partial support from IRD allows visualization but not database sharing, requiring manual labor.
- Several holding companies were identified that had not been sent BOP surveys; agreed to review and expand the list using available indicators and IRD data where possible.
- Ongoing enterprise census, expected to end in the second quarter of 2023, would also improve the business registry.
- ECCB has data on debt securities issued by residency to be included in portfolio assets and liabilities as needed.
- Debt securities issued on the RGSM and acquired by nonresidents are not currently included in financial account assets or liabilities for ECCU member economies.
- Mission recommended revising BOP estimates to include only transactions with nonresidents in debt securities issued by Saint Lucia on the RGSM.
- ECCB decided to include these data when backcasting is completed, expected for April 2023.
- Recommendations:
  - Designate an official dedicated to the validation process of the balance of payments surveys who can better complement the compilation process of the ECCB.
  - Review and analyze the list of holding companies included in the ongoing business registry, select a relevant number considering available indicators on the size of their transactions, and send the balance of payments and IIP questionnaire to them.
  - Disseminate the 2021 balance of payments and IIP statistics on the ECCB and CSO websites and report the data to STA.
  - Compile debt securities issued in the RGSM according to the residence of the holders for the whole series.

### Officials met during the mission (selected)
- Maureen Joseph-Lubin — CSO
- Nola Anthony — CSO
- Arnold La Feuillee — CSO
- Loretta Robinson — CSO
- Prunela Charles-Williams — ECCB
- Hubert Pamphile — Operations Manager of the fuel and transshipment facility
- Christopher Paul — CIP Unit – Chief Operating Office
- Kristian Henry — CIP Unit
- Nathalie Dusauzay — FSRA – Executive Director
- Sancha Victor — FSRA – Manager International Sector & Non-Banking Financial

### Appendix I — Status of previous mission recommendations (selected milestones and status)
- PR: Schedule a new meeting with the CED to review the recording of imports and re-exports of fuel. Target Completion Date: September 2022. Status: Ongoing.
- PR: Assess source data regularly, particularly imports and re-exports of fuel provided by the CED. Target Completion Date: December 2022. Status: Ongoing.
- H: Obtain additional information on transactions of the deposit taking corporations from other ECCB areas. Target Completion Date: December 2022. Status: Ongoing.
- H: Compile debt securities issued in the RGSM according to the residence of the holders. Target Completion Date: September 2022. Status: Postponed for March 2023.
- H: Designate officials in charge of the validation process for balance of payments surveys. Target Completion Date: December 2022. Status: Pending.
- H: Produce frequent indicators of balance of payments in advance of the preliminary annual estimation. Target Completion Date: September 2022. Status: Postponed for December 2022.
- H: Disseminate backcasted balance of payments series for 2000–13 in coordination with the ECCB. Target Completion Date: December 2022. Status: Postponed for March 2023.

### Appendix II — Response rate to balance of payments surveys (2019–2021) — selected table totals and notes
- TOTAL: 41 41 36 131
- Note: Nominal rate. Provisional 2021 rates on October 25, 2022.

*Source: tarea2024007 (IMF TA report for Saint Lucia, October 24–28, 2022).*

### 1.      A technical assistance (TA) mission on external sector statistics (ESS) was conducted for

### A technical assistance (TA) mission on external sector statistics (ESS) was conducted for the Central Statistical Office (CSO) of Saint Lucia during October 24–28, 2022.

### Mission objectives and participation
- Purpose: Improve key source data to strengthen compilation of the balance of payments and the international investment position (IIP) statistics; provide practical advice during review of provisional 2021 balance of payments and IIP statistics (released December 2022).
- Participants: Central Statistical Office (CSO) compilers, Eastern Caribbean Central Bank (ECCB) official participated.

### Summary findings on provisional 2021 balance of payments and IIP
- The net errors and omissions (NEOs) for 2021 were positive and higher than those estimated in March 2022.
- The deficit in the current account was significantly higher due to lower travel credits not fully offset by financial account net inflows.
- Response rate to balance of payments surveys is systematically low for:
  - accommodation establishments
  - direct investment enterprises
- Need identified: designation of an official in charge of validation/editing of balance of payments surveys at the CSO to better complement the ECCB compilation process.
- Compilers agreed to review metadata before dissemination with December 2022 data.

### Action Plan — priority actions, target dates, and status notes
- Overarching outcome: Source data adequate for compilation of balance of payments and IIP statistics.
- Priority recommendations and target completion dates (preserve exact wording and dates):
  - June 2023: Follow up with the CED and the fuel and transshipment facility on the provision of consistent monthly volume data on imports and re-exports of fuel for 2019–2021. The CED is expected to use data provided by the fuel and transshipment facility to compare customs records and follow up with oil importers when inconsistencies are detected. — Responsible: CSO.
  - December 2022: Disseminate 2021 balance of payments and IIP statistics on the ECCB and CSO websites and report the data to the IMF’s Statistics Department (STA). — Responsible: CSO and the ECCB. 1
  - December 2022: Review the metadata and report to STA with the 2021 balance of payments and IIP data. — Responsible: CSO and the ECCB. 2
- Additional action plan items and target dates (selected):
  - January 2023: Collaborate with the Tourism Board to re-start the visitor expenditure surveys (VESs) sent by email to visitors. (H)
  - June 2023: Follow up with the Citizenship by Investment Program (CIP) Unit on the stocks and deposits of the escrow accounts established outside Saint Lucia for the funds due from real estate investments under the CIP program. (H)
  - June 2023: Contact the Inland Revenue Department (IRD) to clarify the implications of the amendments to the International Business Companies (IBCs) Act regarding the declaration of taxes and the filing of financial statements of the IBCs to the IRD. (H)
  - April 2023: Compile debt securities issued in the Regional Government Securities Market (RGSM) according to the residence of the holders. (H)
  - June 2023: Designate an official dedicated to the validation process of the balance of payments surveys who can better complement the compilation process of the ECCB. (H)
  - December 2022: Publish quarterly selected balance of payments indicators from the first quarter of 2019 on the ECCB and the CSO websites; add an explanatory note to the series of quarterly imports of goods. (H)
  - December 2022: Develop an advance release calendar for ESS and publish on the ECCB’s website, as well as on the website of the CSO. (H)
  - April 2023: Disseminate backcasted balance of payments series for 2000–13 in coordination with the ECCB. (H)
- Footnotes on completion status from the Action Plan:
  - 1 The recommendation was partially achieved after the end of the mission. The publication on the CSO’s website is pending.
  - 2 The recommendation was achieved after the end of the mission.

### Trade in goods — issues and recommendation
Findings:
- Customs and Excise Department (CED) provides exports and imports including free trade zones and warehouses, but:
  - Imports of fuel are reported to the CED without a determined frequency and with significant lags.
  - CED reports to the CSO have deficiencies: ECCB indicated fuel import data for 2019 show a significant decrease inconsistent with positive economic expansion.
  - Recent monthly data received by the CSO show inconsistent figures — significantly high in some months and too low in others.
  - CED recordings correspond to the moment when duties are paid, which can be over a year after fuel was imported because importers lack a peremptory date to provide declarations and pay duties.
- The fuel and transshipment facility:
  - Provides fuel storage to customers who pay a fee; fuel is stored in tanks before internal sale or re-export.
  - Has granular monthly data on volume of fuel stored and offered to provide these data to the CED to verify importer reports.
- CED staff in charge is new and willing to review recording processes and consistency of volume data.

Recommendation:
- CSO to follow up with the CED and the fuel and transshipment facility on the provision of consistent monthly volume data on imports and re-exports of fuel for 2019–2021. The CED is expected to use data provided by the fuel and transshipment facility to compare customs records and follow up with oil importers when inconsistencies are detected.

### Travel credits — data sources, changes, and recommendation
Findings:
- Travel credits estimated using:
  - number of visitors and length of stay provided by the Tourism Board of Saint Lucia,
  - per-capita average daily visitor expenditure from Visitor Expenditure Surveys (VESs).
- Since the COVID-19 pandemic:
  - Face-to-face VES was not conducted; substituted by surveys sent by email which obtained a good response rate.
  - Since August 2022, due to certain legal restrictions, surveys are requested through a QR code and response rate has been significantly reduced.
  - The Board has managed to lift the restrictions to carry out VESs via email and plans to continue email surveys.
  - CARTAC TA will further assist to assess data quality of these email surveys (e.g., sampling and methodology to derive estimates for relevant visitor arrival population categories).
  - Prior to the COVID-19 pandemic, the Board had one of the most robust in-person visitor surveys in the ECCU region.
- While reviewing provisional 2021 balance of payments, a significant reduction in travel credits from previous estimates (disseminated March 2022) was observed.
  - Number of visitors by category, length of stay, and average daily expenditure were estimated by the ECCB previously; these estimates were replaced by data received from the Tourism Board.
  - BPM6 Compilation Guide good practice: compiler should play an active role in development and monitoring of visitor surveys conducted by other agencies, including questionnaire design, revision, and validation of data received.

Recommendation:
- Collaborate with the Tourism Board to restart the VESs sent by email to visitors.

### Direct investment and the Citizenship by Investment Program (CIP)
Findings on data collection:
- Direct investment data sources include balance of payments surveys and administrative/regulatory reports such as financial statements from the Inland Revenue Department (IRD), the CIP Unit, and Invest St. Lucia.
- The CIP Unit records land sales to nonresidents made under the CIP.

CIP investment types and amounts (preserve exact amounts and text):
- One-time donation to National Economic Fund (US$100,000).
- Real estate Investment (US$300,000 in hotels, resorts, boutiques).
- COVID-19 Government Bonds (US$250,000). Limited Time Offer until December 31, 2022.
- Government bonds (US$500,000) with a five-year holding period.
- Direct business investment (US$3,500,000) on enterprise projects.

Classification of CIP-related payments in balance of payments/IIP:
- Application and processing fees: government services (services account, credits).
- Due diligence fees paid by nonresidents to the CIP Unit: other business services (credits) — domestic due diligence businesses used.
- Due diligence services paid by the CBI Unit to international due diligence businesses (nonresidents): other business services (debits).
- Contributions to the National Economic Fund: capital transfers of the general government (credits).
- Contributions for investment projects: direct investment liabilities in the financial account.

Special note on escrow accounts:
- Statutory Instrument No. 48 of 2019 Escrow legislation for real estate developers allows funds due to the government of US$300,000 per application to be established by a registered and regulated bank outside Saint Lucia.
- Under the legislation, developer (resident) can establish escrow accounts on a registered and regulated bank outside Saint Lucia (nonresident).
- Compilers request information on stocks and deposits of these escrow accounts abroad to be included in the balance of payments and IIP under other investment assets, currency and deposits.

Recommendation:
- Follow up with the CIP Unit on the stocks and deposits of the escrow accounts established outside Saint Lucia for the funds due from real estate investments under the CIP program.

### Offshore enterprises and Special Purpose Entities (SPEs)
Findings:
- International Business Companies Act regulates incorporation and related matters; companies must have a registered agent and registered office; only that information is public.
- Amendment: all international business companies (IBCs) incorporated after January 1, 2019, are deemed resident, not restricted from doing business with residents, and subject to the provisions of the Income Tax Act.
- Mission recommended consultation with the IRD on implications of amendments regarding declaration of taxes and filing of financial statements of these companies to the IRD.

*Source: tarea2024007 (IMF TA report for Saint Lucia, October 24–28, 2022).*

### 16.      The Financial Services Regulatory Authority (FSRA)  regulates international banks,

### 16.      The Financial Services Regulatory Authority (FSRA)  regulates international banks,

### FSRA scope and licensed entities
- The FSRA regulates international banks, international insurance companies, and international mutual funds. These institutions provide financial services to nonresidents of Saint Lucia.
- There are 11 international banks, 32 international insurance companies with different license types, and seven international mutual funds in Saint Lucia.

### Citizenship by Investment (CIP) and national fund arrangements
- A special fund has been set up at a domestic Bank called the Saint Lucia National Economic Fund, to receive all investment amounts made to the National Economic Fund (Saint Lucia National Economic Fund Act No.18 of 2019).
- The governing body is the Saint Lucia National Economic Fund Board.
- Investment amounts per application for a real estate project go into an escrow account managed by an appointed escrow agent for the developer.
- According to Statutory Instrument No. 48 of 2019, if an escrow account cannot be established in Saint Lucia, it is possible to establish an escrow account by a registered and regulated bank outside Saint Lucia.

### International Business Companies (IBCs) tax and reporting provisions
- According to the IBCs Act (section 109), the IBCs could elect to be exempted from income tax or to be liable to income tax on the profits and gains of the IBCs at a rate of one percent.
- A company that elects to be exempt from tax under section 109 is not required to file any tax returns, but those that elect to pay tax must file an annual tax return to the registered agent.
- According to the Income Tax Act, the companies established under the IBCs Act are exempt companies.

### Special Purpose Entities (SPEs) and data access
- The CSO does not collect specific data on SPEs.
- The FSRA indicated that there are approximately 3,000 IBCs incorporated in Saint Lucia, which could be classified as SPEs.
- The FSRA receives only the financial statements of the international financial institutions; due to legal restrictions they are not allowed to share the information with the CSO or the ECCB.
- Recommendation:
  - Contact the IRD to clarify the implications of the amendments to the IBCs Act regarding the declaration of taxes and the filing of financial statements of the IBCs to the IRD.

### High-frequency indicators (balance of payments)
- At the time of the mission, the ECCB was working on the collection of high-frequency indicators of balance of payments.
- Administrative data are available to the compilers which can be used as indicators to assess the country’s external sector with improved periodicity and timeliness.
- The ECCB had the intention to publish those quarterly indicators for all the member economies before December 2022.
- The table of indicators includes data on:
  - transactions in goods (imports and exports),
  - services (visitor expenditure, CIP fees recorded under government goods and services),
  - primary income (central government interest payments),
  - secondary income (remittances and current grants),
  - capital account (official capital grants and CIP-related flows),
  - financial account (deposit-taking institutions and government transactions),
  - and international reserves.
- The mission warned about challenges for the registration of monthly fuel imports, which could lead to important changes in the published data of total quarterly imports; recommendations were provided regarding explanatory notes to be added to the indicators.
- Recommendation:
  - Publish quarterly selected balance of payments indicators from the first quarter of 2019 on the ECCB and the CSO websites. Add an explanatory note to the series of quarterly imports of goods.
- Note: The development of these indicators is an initial step towards the development of quarterly balance of payments and IIP.
- Note: The indicators were published on the ECCB’s website after the end of the mission.

### Metadata accessibility (BOP and IIP)
- Balance of payments and IIP metadata were not disseminated.
- Preliminary metadata Excel files were completed with the CSO and the ECCB during previous missions.
- The information required to answer the balance of payments and IIP metadata questionnaires through the STA Integrated Collection System (ICS) platform is available.
- The ECCB work program considered the dissemination of the metadata for all the ECCU member countries with the 2021 balance of payments and IIP revision.
- The dissemination of an advance release calendar for ESS was agreed with the ECCB.
- The ECCB is considering reviewing balance of payments and IIP estimates throughout the year; the calendar will be useful to provide revision dates to users.
- Recommendations:
  - Review the metadata and report to STA with the 2021 balance of payments and IIP data.
  - Develop an advance release calendar for ESS and publish on the ECCB’s website, as well as on the website of the CSO.

### Review of historical balance of payments and IIP (backcasting)
- Recommendations from previous TA missions regarding the backcasting for 2000–2013 of the BPM6-based balance of payments and IIP are pending.
- The finalization of the backcasting of the time series for 2000–2013 in further coordination with the ECCB has been postponed to April 2023.
- Recommendation:
  - Disseminate backcasted balance of payments series for 2000–13 in coordination with the ECCB.

### Provisional 2021 balance of payments (mission review)
- The mission reviewed the provisional 2021 balance of payments, being prepared by the ECCB and CSO compilers.
- Net errors and omissions (NEOs) for 2021 are positive and higher than those estimated in March 2022.
- The deficit in the current account is significantly higher due to lower travel credits not fully offset by financial account net inflows.
- Compilers had included source data from most administrative sources and from the balance of payments surveys, but the response rate was low.
- Compilers agreed to continue following up with nonrespondents to the balance of payments surveys.
- An official in charge of the validation/editing process of balance of payments surveys is needed at the CSO to better complement the compilation process by the ECCB.
- The CSO was working on a business registry project to provide a more complete framework for national accounts and ESS; they are receiving partial support from the IRD insofar as it allows visualization of available information, but without sharing the database, demanding time-consuming manual labor.
- The CSO identified several holding companies not included in the list of enterprises to which the balance of payments surveys were sent; it was agreed that the list would be reviewed considering available indicators that could be supplemented with IRD data—for example, on the size of their transactions—to include the larger ones for the next compilation exercise.
- Information from the ongoing enterprise census, expected to end in the second quarter of 2023, would also improve the business registry.
- The ECCB has data on debt securities issued by residency that will be included in the portfolio assets and liabilities of the balance of payments and the IIP, as needed.
- Debt securities issued on the Regional Government Securities Market (RGSM) and acquired by nonresidents are not currently included in the assets or liabilities of the financial account compiled for ECCU member economies.
- The mission recommended revising balance of payments estimates to include only transactions with nonresidents in debt securities issued by Saint Lucia on the RGSM.
- The ECCB has decided to include these data when the backcasting is completed, which is expected for April 2023.
- Recommendations:
  - Designate an official dedicated to the validation process of the balance of payments surveys who can better complement the compilation process of the ECCB.
  - Review and analyze the list of holding companies included in the ongoing business registry, select a relevant number considering available indicators on the size of their transactions, and send the balance of payments and IIP questionnaire to them.
  - Disseminate the 2021 balance of payments and IIP statistics on the ECCB and CSO websites and report the data to STA.
  - Compile debt securities issued in the RGSM according to the residence of the holders for the whole series.

### Officials met during the mission (selected)
- Maureen Joseph-Lubin — CSO
- Nola Anthony — CSO
- Arnold La Feuillee — CSO
- Loretta Robinson — CSO
- Prunela Charles-Williams — ECCB
- Hubert Pamphile — Operations Manager of the fuel and transshipment facility
- Christopher Paul — CIP Unit – Chief Operating Office
- Kristian Henry — CIP Unit
- Nathalie Dusauzay — FSRA – Executive Director
- Sancha Victor — FSRA – Manager International Sector & Non-Banking Financial

### Appendix I — Status of previous mission recommendations (selected milestones and status)
- PR: Schedule a new meeting with the CED to review the recording of imports and re-exports of fuel. Target Completion Date: September 2022. Status: Ongoing.
- PR: Assess source data regularly, particularly imports and re-exports of fuel provided by the CED. Target Completion Date: December 2022. Status: Ongoing.
- H: Obtain additional information on transactions of the deposit taking corporations from other ECCB areas. Target Completion Date: December 2022. Status: Ongoing.
- H: Compile debt securities issued in the RGSM according to the residence of the holders. Target Completion Date: September 2022. Status: Postponed for March 2023.
- H: Designate officials in charge of the validation process for balance of payments surveys. Target Completion Date: December 2022. Status: Pending.
- H: Produce frequent indicators of balance of payments in advance of the preliminary annual estimation. Target Completion Date: September 2022. Status: Postponed for December 2022.
- H: Disseminate backcasted balance of payments series for 2000–13 in coordination with the ECCB. Target Completion Date: December 2022. Status: Postponed for March 2023.

### Appendix II — Response rate to balance of payments surveys (2019–2021) — selected table totals and notes
- TOTAL: 41 41 36 131
- Note: Nominal rate. Provisional 2021 rates on October 25, 2022.

*IMF | CARTAC Saint Lucia | 10–15*

---


_Source: https://www.imf.org/-/media/files/publications/tar/2024/english/tarea2024007.pdf_