Central Bank of Sri Lanka has decided to relax controls on foreign exchange transactions in 2010. This was stated in its 'Road Map: Monetary and Financial Sector Policies for 2010 and beyond,' the monetary and financial sector policy framework for 2010.

The policy framework allows Sri Lankans to open and maintain accounts with banks abroad, to invest in equity or short term debt instruments in overseas companies, allows foreigners to invest in rupee denominated debentures issued by local companies and insurance companies to invest part of their assets of general fund or technical reserve, in foreign assets.

Central Bank Governor, Ajith Nivard Cabraal introducing the policy framework further stated that it will remove the restrictions on pre-payment of import bills and remove margin requirements on selected imports under advance payments, and provide greater flexibility for forward contracts in foreign currency to cover current and capital transactions.

Central Bank will also permit the unification of accounts of foreigners for investments in securities and allow foreigners on tour or business in Sri Lanka to open Sri Lanka Rupee accounts.