Australia inched closer to normalizing relations with Myanmar by lifting travel and financial bans on around 260 people, including the president and other senior politicians.

Australian Foreign Minister Bob Carr made the announcement during his trip to the United Kingdom.

Carr said the decision was taken after discussions with Myanmar's government and political opposition leaders, including Aung San Suu Kyi, head of the National League for Democracy party and one of the country's highest profile pro-democracy advocates.

Suu Kyi won a national election 20 years ago but was refused power by the ruling military government. She was imprisoned several times for public statements condemning the lack of democracy.

After a national election in November 2010, the new government of ex-junta members took office in early 2011, although many Western countries called the process and result fraudulent.

However, government moves toward a more open democratic process, including recent elections for vacant seats in the Parliament of Myanmar -- formerly called Burma -- gained cautious approval from Suu Kyi and outside observers.

"We're easing sanctions after talking to Aung San Suu Kyi and others in the opposition, after talking to the government itself, (and) after talking to other nations," Carr said.

"It means that the number of people in the Burmese government subject to restrictions on their financial dealings with Australia or visas to Australia will be reduced from 392 to about 130.

"That removes many of the civilians from the list and that includes President Thein Sein and government ministers," Carr said.

People remaining under the restrictions include senior military personnel and people suspected of human rights abuses.

Carr also said the decision could be reversed if Australia sees a return to repressive policies in Myanmar.

"I think the president is sincere, I think he deserves these rewards but of course it's always possible to resume these sanctions," he said.

Australia's announcement comes on the heels of British Prime Minister David Cameron's visit to Myanmar last week during which he urged the suspension of economic sanctions in response to the government's political reforms.

Cameron, who also met Suu Kyi, said suspending sanctions against Myanmar would be a "bold move" but "it's right to take this first step."

Cameron's visit was the first by a British leader since the country gained independence from the United Kingdom in 1948.

The country was under military dictatorship for many of the years since a 1962 coup until elections in November 2010 and which were won by the former junta leaders who had resigned from the military to run as civilians.

Western countries were heavily critical of the results, especially since Suu Kyi -- still under house arrest -- wasn't allowed to run for a seat in Parliament.

But the government gradually increased transparency, set up a human rights commission and opened discussions with opposition groups and parties on widening the political process.

The moves were greeted with cautious approval by Suu Kyi, who openly called for more political freedom.

In September the think tank International Crisis Group said Western countries should engage the new regime in Myanmar to encourage it to continue with reforms.

The ICG briefing paper "Myanmar: Major Reform Underway" suggested Thein "has moved rapidly to begin implementing an ambitious reform agenda" first set out in his March 2011 inaugural address.

"With the political process moving ahead quickly, now is not the time for the West to remain disengaged and skeptical," Robert Templer, ICG's Asia Program director, said.

"It is critical to grasp this unique opportunity to support a process that not even the most optimistic observers saw coming. This requires a new, proactive and engaged approach, in line with the positive signals coming from (the capital) Naypyitaw."