RESTRICTED
WORLD TRADE S/FIN/W/12/Add.51
11December 1997
ORGANIZATION(97-5563)
Original: English Committee onTrade inFinancial Services
COMMUNICATION FROM SRILANKA
Conditional Offer onFinancial Services
Addendum
Thefollowing communication iscirculated attherequest ofSriLanka toMembers ofthe
Committee onTrade inFinancial Services.
_______________
SriLanka ispleased tosubmit totheCommittee onTrade inFinancial Services theannexed
draftconditional offeronFinancial Services. Thisofferisconditional upon asuccessful conclusion
ofthenegotiations oftheCommittee onTrade inFinancial Services.
SriLanka reserves theright tomodify, reduce orwithdraw thisoffer, inwhole orinpart,
depending ontheresults ofthenegotiations onFinancial Services.
SriLanka alsoreserves theright tomake technical changes tothisoffer andtocorrect any
errors, omissions orinaccuracies thatmayhavebeencommitted duetooversight orother reasons.S/FIN/W/12/Add.51
Page2SRILANKA -DRAFT OFFER ONFINANCIAL OFFER
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
7. Financial Services
I. Direct Insurance
A.Life (1) Unbound (1) Unbound
(2) Unbound (2) Unbound
(3) New establishments aresubject tolicences
approved bytheGovernment ofSriLanka
(GOSL). Foreign equity participation, in
thissector isdetermined perthe
horizontal section.(3) None
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.
B.Non-life (1) Unbound except inthecaseofinsurance
offreight, where insurance istaken by
thebuyer orseller inaccordance with
contract.(1) Unbound
(2) Unbound (2) Unbound
(3) New establishment issubject tolicence
approved bytheGovernment ofSriLanka
(GOSL). Foreign equity participation in
thissector determined perthehorizontal
section.(3) None
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.S/FIN/W/12/Add.51
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
II. Re-insurance and
retrocession(1) Reinsurance canbetaken withforeign
reinsurers totheextent oftheresidual
uncovered riskafter obligatory or
statutory placement withNational
Insurance Corporation.(1) Unbound
(2) Reinsurance canbetaken withforeign
reinsurance totheextent mentioned
above.(2) Unbound
(3) Unbound (3) Unbound
(4) Unbound except asindicated inthe
horizontal section.(4) Unbound except asindicated inthe
horizontal section.S/FIN/W/12/Add.51
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
B. Banking andOther Financial Services (excluding insurance)*
General Conditions
1. Theterms oftheoffer inthebanking andother financial services (excluding insurance) sub-sector areinaccordance withGATS, theAnnex onFinancial
Services andtheUnderstanding onCommitments inFinancial Services. Allthecommitments aresubject toentry requirements, domestic laws, rules and
regulations andtheterms andconditions oftheCentral Bank ofSriLanka, theBoard ofInvestment, theSecurities andExchange Commission andanyother
competent authority inSriLanka, asthecasemaybe,which areconsistent withArticle VIoftheGATS andparagraph 2oftheAnnex onFinancial Services.
2. Financial Services intheform ofoperations identified atsub-paragraphs (a)to(l)intheSchedule canbecarried outinSriLanka through alocally
incorporated company orabranch ofacommercial bank incorporated outside SriLanka.
2.1(a)Only alicensed commercial bank, alicensed specialized bank oraregistered finance company mayaccept deposits.
(b)Only alicensed commercial bank mayaccept deposits which arerepayable upon demand.
2.2Approval, registration andlicensing relating tobanks andother financial institutions willbesubject toaneconomic needs test.
2.3Thetotalforeign shareholding inanyinstitution providing financial services islimited to49percentoftheissued share capital.
*Thisschedule deals onlywithSection B.Section Awhich covers insurance andinsurance related services iscontained inaseparate schedule.S/FIN/W/12/Add.51
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(a)Acceptance ofdeposits
andother repayable
funds from thepublic
(b)Lending ofalltypes,
including, inter-alia,
consumer credit,
mortgage credit,
factoring andfinancing
ofcommercial
transactions.Thecommitments listed below apply toall
services listed under B(a)to(j).
(1) Unbound
(2) Unbound
(3) Asspecific intheGeneral Conditions.
(4) Unbound except asspecified inthe
horizontal commitments.Thecommitments listed below apply toall
services listed under B(a)to(j).
(1) Unbound
(2) Unbound
(3) Asspecified intheGeneral Conditions.
(4) Unbound except asspecified inthe
horizontal commitments.
(c)Financial leasing
(d)Allpayment and
money transmission
services
(e)Guarantees and
commitments
(f)Trading forown
account orforaccount
ofcustomers, whether
onanexchange, isan
over-the-counter
market orotherwise,
thefollowing:
-money-market
instruments
(cheques, bills,
certificates of
deposits, etc.)
-foreign exchangeS/FIN/W/12/Add.51
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
-derivative
products including
butnotlimited to
futures and
options
-exchange rateand
interest rate
instruments,
including products
such asswaps,
forward rate
agreements, etc.
-transferable
securities
-other negotiable
instruments and
financial assets,
including bullion.
(g)Participation inissues
ofallkinds ofsecurity,
including under-writing
andplacement as
agreed (whether
publicly orprivately)
andprovision of
service -related to
such issues.
(h)Money brokingS/FIN/W/12/Add.51
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
(i)Asset management,
such ascashor
portfolio management,
allforms ofcollective
investment
management, pension
fund management,
custodial depository
andtrustservices.
(j)Settlement andclearing
services forfinancial
services, including
securities, derivative
products, andother
negotiable instruments.
(k)Provision andtransfer
offinancial
information, and
financial data
processing andrelated
software byproviders
ofother financial
services.Thecommitments listed below apply toall
services listed under B(k)to(l)
(1) None, except asprovided intheGeneral
Conditions.
(2) None, except asprovided intheGeneral
Conditions.Thecommitments listed below apply toall
services listed under B(k)to(l)
(1) None, except asprovided intheGeneral
Conditions.
(2) None, except asprovided intheGeneral
Conditions.
(l)Advisory services on
alltheactivities listed
insubparagraphs (a)
to(k)(3) Asspecified intheGeneral Conditions.
(4) Unbound except asspecified inthe
horizontal commitments.(3) Asspecific intheGeneral Conditions.
(4) Unbound, except asspecific inthe
horizontal commitments.