Business Times

Rules easing for foreigners to invest in Sri Lanka

Sri Lanka, hoping to improve the business climate for foreigners as well as local investors, is relaxing a range of foreign exchange controls among which is allowing foreigners to open companies here or invest in local entities without the usual restrictions.

The relaxed rules will come into force soon and operating guidelines to commercial banks are currently being prepared for this purpose, Central Bank Governor Ajit Nivard Cabraal told the Business Times.
Listing out eight major rules that are being relaxed, he explained that:

1) Foreign companies will be permitted to open ‘places of business’ without any restriction apart from sectors like money lending, pawn broking, retail banking, etc. New areas that would be allowed include mass communication, fishing. Some cases may however need permission from the Controller of Exchange at the Central Bank (CB). In general the negative list (to open businesses) is being reduced to facilitate business growth in the economy.

2) Insurance companies will be permitted to invest some of its assets abroad in the range of 6 %, 12 % and 20% over a period of three years, of the life and general funds. There have been requests in the past from the Insurance Board of Sri Lanka for such investments.

3) Foreigners will be allowed to invest in rupee denominated debentures issued by local companies.

4) Sri Lankan residents would be permitted to lend to/invest in overseas companies. This authority will be delegated to commercial banks but a higher, stipulated amount would required CB permission.

5) Foreign visitors and tourists will be permitted to open foreign currency accounts here.

6) Foreign staff of foreign embassies to be allowed to open any number of accounts.

7) Quantum of advances for opening LCs to be increased to $50,000 from $10,000 now.

8) Sri Lankan companies will be permitted to borrow any amount of funds from abroad. However there would be a national cap on the total amount that would be permitted.

Top to the page  |  E-mail  |  views[1]
SocialTwist Tell-a-Friend
Other Business Times Articles
Singapore firms to invest in SriLankan Airlines units
Government to tighten belt to pay public sector salary hike
Rules easing for foreigners to invest in Sri Lanka
Host of state entities to take IPO leap
Linde Group acquires 95% stake in Ceylon Oxygen
CPC’s controversial gas oil deal with UAE firm cancelled
Leisure industry opposes removal of visa-on-arrival
Microfinance experts meet in Colombo
Concerns over target of 2.5 million tourists
Five-lane highways, congested roads
Protecting directors from personal legal liability
Investing your EPF contributions in the Colombo stockmarket
EPF amendments without proper consultations with stakeholders : Union
Simplify land acquisition for pvt sector in 2011 budget : CCC
Waking up to wedding dreams
India’s low-fare carrier enters Sri Lankan airspace
SriLankan Catering to list 20%
Largest gap between sexes in Lankan labour force participation
Call to standardize pertinent company info in annual reports
Time for derivatives in the Colombo bourse
Continuing saga of oil exploration in the Mannar basin
Overseas Realty to moot tax drop
Dialog’s Reality show for armed forces personnel
Govt. intervention in economic renaissance highlighted at the CPM conference
Seminar to mark 'World Day for Decent Work'
FCCISL gears up for 2010 Sri Lankan Entrepreneur of the year
Tata in housing sector in Sri Lanka
EU focuses assistance on displaced in North and East
Most Sri Lankan families can’t buy even a basic house : WB
Sleep-in-comfort soon on SriLankan Airlines
Employee surveys not conducted due to time, cost restraints
Dankotuwa organizes quality week focusing on employee participation
IMF says Sri Lankan economy shows improvement
Economy to be highlighted at Oct. 28 ICASL conference
FCCISL welcomes decision to ban metal scrap exports
BOC rating up on potential government profile
CBL commemorates National Quality Week
Neither Govt. nor private sector sought EU help to reverse GSP: Savage
Way forward towards improving agriculture
Proposed CEPA to be widely discussed by all stakeholders: Indian High Commissioner
Stop use of post-dated cheques in Sri Lanka
15 trade unions in historic move to unite Lankan workforce
Regulatory framework to standardise Sri Lanka’s higher education institutions
Trade union leader defends US GSP for Sri Lanka
Gulf Air resumes flights to Colombo
Canada keen to pursue business interests with Sri Lanka
Free Lanka plans to follow subsidiary Hydro Power Ltd’s IPO in 2011
‘Adrenalin’ Human Capital Alignment software now in Sri Lanka


Reproduction of articles permitted when used without any alterations to contents and a link to the source page.
© Copyright 2010 | Wijeya Newspapers Ltd.Colombo. Sri Lanka. All Rights Reserved.| Site best viewed in IE ver 6.0 @ 1024 x 768 resolution