1. RECENT RELAXATIONS OF EXCHANGE CONTROL REGULATIONS COMMERCIAL BANK OF CEYLON PLC

7. EXCHANGE CONTROL LIBERALIZATIONS ON CAPITAL ACCOUNT TRANSACTIONS 07 COMMERCIAL BANK OF CEYLON PLC DETAILED EXPLANATION

15. 15 COMMERCIAL BANK OF CEYLON PLC General permission for the issue and transfer of convertible or non-convertible, redeemable or non-redeemable debentures denominated in Sri Lankan Rupees in a company classified as a specified business enterprise in terms of the SL Accounting and Auditing Standards Act, No. 15 of 1995, to foreign institutional investors, corporate bodies incorporated outside SL, individuals resident outside SL and Sri Lankans resident outside SL. ALLOWING FOREIGNERS TO INVEST IN RUPEE DENOMINATED DEBENTURES ISSUED BY LOCAL COMPANIES 02

19. 19 COMMERCIAL BANK OF CEYLON PLC Permission has been granted by Gazette Extraordinary No.1681/10 dated 22.11.2010 for companies incorporated outside SL and registered as overseas companies under Companies Act No. 07 of 2007 to carry on business in SL through a place of business such as Branch, Project, Liaison, Representative Office or similar office. OPENING OF PLACES OF BUSINESSES IN SRI LANKA 03

23. 23 COMMERCIAL BANK OF CEYLON PLC Schedule II : Activities which require the prior permission of the Controller of Exchange cont….: Local air transportation Coastal shipping Any industry manufacturing or producing: – Arms, ammunitions, explosives, military vehicles and equipment, aircraft and other military hardware – Poisons, narcotics, alcohols, dangerous drugs and toxic, hazardous or carcinogenic materials – Currency, coins or security documents OPENING OF PLACES OF BUSINESSES IN SRI LANKA 03 Back to Slide 20

27. 27 COMMERCIAL BANK OF CEYLON PLC Foreign Borrowings require prior approval of the CBSL in terms of the provisions of section 5 of the ECA. New Policy to be effective from 22 nd November 2010. Procedure: Request to be forwarded to ECD Permission to be granted by the Controller of Exchange Maximum amount to be borrowed: USD 20 million at any given time. EXPEDITION OF APPROVALS FOR COMPANIES TO BORROW FROM FOREIGN SOURCES 04

33. 33 COMMERCIAL BANK OF CEYLON PLC Repayment period: shall be at least three years from the date of receipt of the loan proceeds; Cost of Borrowing: All costs including fees, charges and interest applicable for the loans shall not exceed the prevailing Sri Lanka’s International Sovereign Bond rate in the secondary market + 200 basis points; EXPEDITION OF APPROVALS FOR COMPANIES TO BORROW FROM FOREIGN SOURCES 04

40. NEW FOREIGN CURRENCY / RUPPE ACCOUNTS 40 COMMERCIAL BANK OF CEYLON PLC

60. 60 COMMERCIAL BANK OF CEYLON PLC Opening of Accounts: In the form of current, savings or term deposits in designated foreign currency upon submission of, Employer A letter from the commissioner General of Inland Revenue confirming that the employer is qualified for income tax exemptions. Employee A letter from an employer that the employee is directly involved in projects carried out by the employer & is paid for his services in foreign currency. FOREIGN CURRENCY ACCOUNTS FOR INTERNATIONAL SERVICE PROVIDERS AND THEIR EMPLOYEES (FCAISPE)