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. 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.

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.

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.