(c) Extracted from sections 2 and 3 of the extraordinary gazette notification No. 1232/14 dated 2002.04.19 published under the exchange control act (chapter 423 of the CLE)

Section 2 - Exclusions

The permission hereby granted shall not apply in respect of shares of a company proposing to carry on or carrying on any of the following businesses:

  1. Money lending
  2. Pawn brokering
  3. Retail trade with a capital of less than one Million US Dollars
  4. Coastal fishing

Section 3 - Limitations

 

  1. The permission hereby granted shall apply in respect of shares in a company carrying on or proposing to carry on any of the following businesses only upto 40% of the issued capital of such company, or if approval has been granted by the Board of Investment of Sri Lanka for a higher percentage of foreign investment in any company, only upto such higher percentage.
    1. Production of goods where Sri Lanka’s exports are subject to internationally determined quota restrictions
    2. Growing and primary processing of tea, rubber, coconut, cocoa, rice, sugar and spices
    3. Mining and primary processing of non renewable national resources
    4. Timber based industries using local timber
    5. Fishing (deep sea fishing)
    6. Mass communications
    7. Education
    8. Freight forwarding
    9. Travel agencies
    10. Shipping agencies
  2. The permission hereby granted shall apply in respect of the shares of a company carrying on or proposing to carry on any of the businesses set out below only upto the percentage of the issued capital of the company for which percentage either general or special approval has been granted by the Government of Sri Lanka or any legal or administrative authority set up for the approval of foreign investment in such businesses.
    1. Air transportation
    2. Coastal shipping
    3. Industrial undertaking in the second schedule of the Industrial Promotion Act, No.46 of 1990,
      • any industry manufacturing arms, ammunitions, explosives, military vehicles and equipment aircraft and other military hardware
      • any industry manufacturing poisons, narcotics, alcohols, dangerous drugs and toxic, hazardous or carcinogenic materials
      • any industry producing currency, coins or security documents
    4. Large scale mechanised mining of gems
    5. Lotteries