The gazette notification issued to increase the thresholds for local companies to invest overseas and streamlining processes to facilitate cross-border expansion has been approved by the Committee on Public Finance.

The said Order under Section 22 of the Foreign Exchange Act, No. 12 of 2017 Published in the Gazette Extraordinary No. 2441/14 of 18.06.2025 has accordingly been approved during a CoPF meeting chaired by Member of Parliament (Dr.) Harsha de Silva, the Department of Communication of Parliament stated.

Under the new framework, the investment limit for listed companies has been raised from USD 500,000 to USD 750,000 and the limit for unlisted companies has been increased from USD 150,000 to USD 200,000. Companies seeking to invest beyond these limits can now borrow from foreign sources up to USD 2 million, with Central Bank of Sri Lanka oversight and any investment exceeding USD 2 million will require special approval, the statement added further.

All outward investments must be routed through a designated Outward Investment Account (OIA) in Sri Lanka before funds can be transferred abroad. The Central Bank has also granted general permission to licensed banks to facilitate these transactions swiftly, ensuring companies can access opportunities without undue delays.

Officials who attended the meeting emphasized that these reforms aim to encourage Sri Lankan businesses, particularly in the technology and software sectors to pursue global expansion while maintaining oversight of capital flows. The changes come amid concerns that previous restrictions were prompting some firms to relocate overseas.

Speaking on the updated guidelines, Central Bank of Sri Lanka representatives had assured that short-term supplier credit (DA terms) remains classified as a current account transaction, with no additional restrictions, according to the statement issued by the Department of Communication of Parliament.

The Committee also took into consideration the Regulation made under Section 35 of the Public Debt Management Act, No. 33 of 2024 published in the Gazette Extraordinary No. 2443/14 of June 30, 2025. Approval for the Regulation was granted following a discussion at length.

The Committee reviewed cross-border letter of credit (LC) and de-registration requirements pertaining to the importation of vehicles.

Moreover, the Committee also inquired on the suggested improvements to the Gambling Regulatory Authority Bill and e-commerce platform taxation and related matters.