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Our Bureau

Mumbai , Sept. 13

CITIZENS of Sri Lanka can now invest in shares of Indian companies.

In a circular issued to authorised foreign exchange dealers on Monday , the Reserve Bank of India said citizens of Sri Lanka would henceforth be eligible for purchase of shares and convertible debentures of Indian companies under the foreign direct investment scheme subject to specified terms and conditions.

The RBI circular follows the Union Government decision to lift the restrictions imposed on investment in Indian companies by Sri Lankan citizens.

The decision is also in line with the Union Government's policy to encourage investments in India from other Asian countries. There have been trade and industry demands to lift the ban imposed on Sri Lanka some years ago.

On the flip side, Indian corporates have been making forays into Sri Lanka with majors such as Indian Oil Corporation acquiring 100-plus petrol pumps from Ceylon Petroleum Corporation.

RBI said amendment to the Foreign Exchange management (Transfer of issue of Security by a person Resident Outside India) Regulation, 2000, is being issued separately.

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