The study highlights inter alia that there is a case for countries to adopt a calibrated approach to liberalization of GATS investment rules to harness development benefits. The Study brings out the various dimensions of policy space in the context of GATS and juxtaposes select Asian experiences on liberalization of investment rules. It argues that given the differences in stages of development and policy imperatives, it would be important for countries to both preserve and leverage the GATS flexibilities as the negotiations unfold in the future. Unbridled liberalization of the services, sector without a robust, credible and effective regulatory framework relevant especially for financial services needs to be revisited as a lesson learnt of the current economic crisis.