Sri Lanka Calls for Proposals to Set up a Multi Asset Commodities Exchange for Spot & Forward Markets

28th March 2011, www.lankabusinessonline.com

Sri Lanka's securities regulator has called for proposals from international and domestic qualified investors to design, build and own an exchange which can trade "multi asset" classes in spot and forward markets.

Sri Lanka's Securities and Exchange Commission has called for expressions of interest from parties that now operate at least two licensed exchanges and have net assets of more than 100 million US dollars.

Prospective investors have to team up with a Sri Lankan party and submit proposals by April 29.

"The exchange should facilitate spot and futures trading of multi-asset classes and needs to incorporated as a demutualized limited liability corporate entity," the SEC said in a newspaper advertisement.

"It should adhere to global best practices and standards, and accommodate all necessary components of a commodities exchange including mechanisms for clearing and settlements of the instruments traded."

Sri Lanka already has an equities exchange which also has some debt listed. The advertisement for the new exchange for multi-asset classes did not specifically exclude either equity or debt.

The existing stock exchange is member-owned.

But the new exchange has to be set up as a limited company owned by shareholders.

Central Bank to Relax Exchange Controls in Sri Lanka, Proposed Measures to Allow upto US$ 500,000 Out of the Country for Investment

05th November 2009, www.dailymirror.lk, By Deepal V. Perera

As Sri Lanka’s foreign exchange reserves are on the threshold of passing the US$5 billion mark, the Central Bank of Sri Lanka said last evening that it plans on relaxing current exchange control regulations in place thereby allowing Sri Lankan investors to invest upto US$500,000 abroad without Central Bank approval.

Accordingly Central Bank Governor Ajith N. Cabraal said that the Bank will be relaxing current exchange controls by the first of December this year, thereby allowing Sri Lankan investors take money out of the country without CBSL approval.

“The current exchange control measures in place require you to have the permission of the Bank while the proposed measures would enable people to take upto US500,000 out of the country for investment purpose without obtaining the approval of the Central Bank. It is only if you are intending to take money beyond this amount, that you would need to have approval from the bank,” the Central Bank Governor said. According to the Governor the current exchange control regulations in place do not allow anyone to take money out of Sri Lanka without prior approval from the Bank.