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Editorial

Overview

Following elections in 2015, the government has focused on stabilising the economy. A progressive relaxation of tough restrictions on ‚Äď especially foreign ‚Äď investments has been implemented, most notably with the enactment of the Foreign Exchange Act in July 2017. This replaces the Exchange Control Act and liberalises restrictions applying to funds from outside the country, giving locals greater chances of conducting business abroad while at the same time encouraging foreign companies to bring their operations to Sri Lanka. There has been significant investment in the infrastructure sector based on high-level commercial borrowing, especially foreign currency. In this regard, China and India have shown considerable interest in the country. Ongoing liberalisation of foreign investment restrictions may be extended to various sectors, particularly shipping.

Despite the opening up of some industries in the Sri Lankan market, the legal market remains closed to international law firms, which are prohibited from operating in the country, and consists entirely of Sri Lankan law firms. Julius & Creasy and Nithya Partners lead across a wide range of practice areas. D. L. & F. De Saram and F. J. & G. De Saram are also major names to note.

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