Liberty

Jan 18, 2010 (LBO) – The first part of a series of forex control relaxations announced in January will be implemented from February 01, Central Bank Governor Nivard Cabraal said. Cabraal announced a sweeping easing of existing exchange controls on January 04, as part of a monetary policy direction for 2010.

Relaxation

“We announced measures that will have to be put in motion over the year,” Cabraal told LBO.

The first relaxations are planned to come into effect from February 01, he said.

The relaxations would allow Sri Lankan citizens to take cash out and invest in banks and share markets or start businesses up to set limits, which are yet to be announced.

Foreigners would also be allowed to buy local company debt. At the moment foreign investors are only allowed to buy government debt.

The announcement ran into a political storm with opposition activists charging that the easing of controls was aimed at allowing key members of the ruling coalition to take out their ill gotten gains ahead of a presidential election set for January 26.

Corruption has become a key issue of the polls, with opposition candidate retired army general Sarath