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Foreign companies can now invest up to 100 percent of the equity capital of financial sector companies, free of exchange controls, the Central Bank said in a statement.

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rnThe move is "subject only to the rules and regulations stipulated by the relevant regulatory authorities pertaining to the activities of the companies in which investment is made," the statement said.

rnThe newly liberalised sectors include: Banking, Finance, Insurance, Stockbroking, Construction of residential buildings and roads, water supply, Mass transportation, Telecommunications, Production and distribution of energy and power, professional services and branch or liaison office of companies incorporated outside Sri Lanka.rn