Offshore Firms

Aug 22, 2008 (LBO) - Sri Lanka is developing a new policy and rules for setting up offices of foreign companies in the island, with plans to increase a minimum deposit requirement, an official said.

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A higher deposit requirement - which is still to be decided - will only apply to new companies, the official said.
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. After a new company law came into effect last year, branches of off-shore firms are coming under Sri Lanka's exchange control department, which is a unit of the Central Bank.

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Authorities are framing new rules to promote investor confidence, and the process is part of an overall liberalization of the country's capital account and capital mobility, a central bank official said.

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At the moment there are about 900 overseas companies registered in Sri Lanka by the company registration office, under an old company law, with a minimum deposit requirement of 100,000 US dollars.