Sri Lanka relaxes exchange controls, foreign investment in corporate debt

May 29, 2014 (LBO) – Sri Lanka has allowed foreign investors to buy debt securities of unlisted private companies also relaxed a series of exchange controls on letters of credit and education expenses.

The liberalization will takes effect from May 28, the Central Banks said.

The full statement from the Central Bank is reproduced below:-

Further Relaxation of Foreign Exchange Regulations – 2014

In view of the improved macroeconomic environment, greater stability in the external sector as well as the development of a more effective and comprehensive regulatory and surveillance framework, several Exchange Control Regulations have been liberalized over the past few years. In keeping with the above policy trend, a series of further relaxation measures as follows, will be implemented with effect from 28 May 2014.

Such measures are also expected to further enhance the external competitiveness of Sri Lanka in the global market.

1. Permission to foreign investors to invest in debentures of companies incorporated in Sri Lanka

Foreign investors will be allowed to invest in non-listed debentures, in addition to listed debentures, through the Securities In

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