Abolished

The Banking Act, the Monetary Law Act and the upcoming Exchange Rate Management Act are likely to be abolished early next year.

rnrnOfficials however, say amendments to the Banking Act and the Monetary Law Act, which governs the Central Bank, will still go ahead in August as a stopgap measure.

rnrnAs part of a marathon passage of economic legislations, a new Exchange Management Act will replace the current Exchange Control Act.

rnrnEven this piece of legislation is likely to go early next year.

rnrnBoth the Banking Act and Monetary Law Act, will be abolished and replaced with fresh legislation.

rnrnGovernment officials say around Rs. 200 bn worth of assets are held by Sri Lankans outside the country.

rnrnThe sweeping exchange liberalisation is expected to tempt some of the money back in addition to foreign direct investment.

rnrnThe abolition of the exchange laws will see the Exchange Controllers Dept. reduced to a small department within the new Central Bank.

rnrnThe department was set up i