Sri Lanka to Continue Relaxing Exchange Controls!
Sri Lanka will continue to liberalize exchange controls to encourage the investments that needed to maintain high economic growth and to link more with global business Central bank Deputy Governor P Samarasiri said.
“In Sri Lanka, the exchange control environment is almost liberalized,” P Samarasiri, Deputy Governor of Central bank said.
“Now the current account is fully liberalized, with no control for import, export or services; it is fully liberalized,”
“Capital transactions are also now largely liberalized; any foreigner can come here, invest and take the money out.”
However he said, the exchange controls for Sri Lankans yet to be relaxed fully.
“There are certain controls for Sri Lankans to invest abroad, and that is the only area where there is exchange control,”
“Investing mean buying real and financial assets which is up to a certain extend liberalized,”
“As you know by 2020 Sri Lanka will be a global business centre. Global business means, there cannot be any foreign exchange control,”
“So in the next four to five years capital transactions also will be fully liberalized.” Samarasiri said.
He said the exchange control activities started in Second World War to protect the foreign exchange earnings they had during that time.
“After the war, many Western countries and European countries took off their exchange controls,” Samarasiri said.
“But countries on our part of the world continued exchange controls willingly,” “Removing exchange controls means you are open to world business,”
“If you really analyze that is one of the reasons for our country to stay lower income.”