the need for identification of priority areas for which foreign direct investment should be mobilized while protecting the interest of the local investors was considered by the Cabinet. It was decided that processing and value addition of spices, animal husbandry and poultry farming are the sectors for which foreign investments need to be limited, with the intention of import substitution. Foreign investment on assembling of vehicles, refining of petroleum products, manufacturing of boats for export market should be encouraged. In order to protect the local investors, it was decided that foreign investment should not be encouraged in small scale agricultural industries, retail trade, manufacturing of steel and cement and beauty care related products. A Ministerial Committee under the Chairmanship of Hon. Minister (Senior) for International Monetary Co-operation and consisting of other Ministers, was appointed to revise the current regulations and to make proposals to the Cabinet.