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Small Openings

On the cards are a higher ownership limits on foreign stakes in financial services including banks and insurance companies.
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rnPresently, foreign ownership is limited to 49 percent in Finance services, 90 percent in insurance companies and 60 percent in banks.

rnCentral Bank Governor A S Jayawardene said they were discussing various possibilities, lquote but the cabinet has not worked out the modalities yet. quote

rnA New Foreign Exchange Management Act is also in the pipeline to replace the existing aging Exchange Control Act.

rnldblquote The Act will focus on liberalisation instead of strict control, dblquote Jayawardene told Lanka Business Online.

rnldblquote Relaxing exchange control is a revolving process and we are gradually removing certain impediments as we go on, dblquote he said.

rnThe bank is in the process of removing curbs on exporters retaining their proceeds in off shore domestic banking units and issuing guidelines for the companies hoping to invest overseas.

rnLocal companies

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