Myanmar's president, Thein Sein, approved a bill to allow citizens to protest peacefully if granted permission on Saturday.
Protesters will be required to inform authorities of the location, timing and reason for protest, five days in advance.
Protesting without permission carries a sentence of upto one year in jail, while disturbing a peaceful gathering carries a penalty of two years' imprisonment.
The move comes in the wake of a visit by Hiliary Clinton, US Secretary of State - the first senior US official to visit Myanmar in over 50 years.
During her visit, Clinton stated in response to some reformist measures, the United States would ease some restictions on international financial assistance and development programs.
In a letter, US president, Barack Obama, said,
“For decades, the choices of this country’s leaders kept it apart from the global economy and the community of nations.”
“Today, the United States is prepared to respond to reforms with measured steps to lessen its isolation and improve the lives of citizens.”
See Clinton touches down in Burma (30 Nov 2011)
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