Exchange controls to relax further
Charumini DE SILVA
The Central Bank will implement measures to further relax foreign
exchange controls.
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Governor
Ajith Nivard Cabraal |
These implementations will smoothen the progress of increased levels
of reserves and will facilitate stability of the external sector in the
long-term, Central Bank Governor Ajith Nivard Cabraal said.
Under this permission will be granted for local companies,
institutions and individuals to invest in equity of companies
incorporated abroad and sovereign bonds issued by foreign Governments.
The Governor said the removal of the maximum limit on the balance of the
indirect exporter’s foreign currency accounts and relaxation of exchange
control restrictions on investments in Unit Trusts will also be executed
during this year.
Permission will be granted to transfer funds in NRFC and RFC accounts
among banks and among individuals and introduction of corporate credit
cards and travel cards under foreign exchange control measures to be
implemented this year.
Restrictions in foreign investments in education, travel agencies and
shipping agencies will be relaxed further. Permission will be granted to
residents to make payments to non-residents with regard to purchase of
real estate.
This will also provide Sri Lankan students studying abroad to obtain
loans from banks in the country of study.
The introduction of special foreign currency accounts for travel
agents, airlines, local companies that undertake foreign contracts and
local companies, which embark on foreign funded projects in Sri Lanka
will benefit under the relaxation of foreign exchange rules this year.
Speaking to the Daily News Business Deputy Governor Dharma Dheerasinghe
said these foreign exchange control relaxations will bring in large sums
of money to the country’s economy with projects such as power and
building construction.
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