Libya's Foreign Ministry says it scrapped the measure after the European Union blocked a Swiss proposal for a visa blacklist against nearly 200 senior Libyan officials, including leader Moammar Gadhafi.
The Libyan ban was issued in February and caused particular concern in European nations with heavy oil investments in the country.
The ban was an escalation of a dispute that began in 2008 when Swiss authorities arrested Gadhafi's son Hannibal and his wife for allegedly beating up their servants in a Geneva hotel.
Libya on Saturday applauded the EU decision to drop the Swiss blacklist proposal.
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