Investment
Sri Lanka remains one of the most attractive destinations in the Asia-Pacific region. Over two decades, successive governments have pursued a policy of economic liberalisation with the emphasis on private sector investment. The pro-business policy environment includes -
Total foreign ownership across almost all areas of the economy
A constitutional guarantee on the safety of foreign investment
Investment laws which are transparent and automatic
A sophisticated legal and regulatory framework covering areas such as intellectual property, settlement of disputes, etc.
Generous fiscal incentives and concessions
An open economic system permitting free transfer of fees, profits, capital earnings and foreign exchange transactions on current account payments
Double Taxation Relief Agreements with 29 countries and Investment Protection Agreements with 23 countries
Investors can also enjoy many other benefits in this beautiful investor-friendly environment - a strategic location on the major trade route between the East and West, multiple-operator telecommunication services, modern container facilities at South Asia's NO. 1 hub-port, stable power supplies and excellent quality of life and a young, educated and energetic workforce
Investment Opportunities
Investment is welcomed in virtually all sectors of the economy in order to expand, diversify and upgrade the industrial and export base of the country. Board of Investment has however identified priority sectors for investment.
The sectors identified qualify for incentives under the BOI Law and are listed below :
Thrust Industries [Electronics and components for Electronic Assembly, Ceramic Glassware and Mineral Based Products, Rubber Based Industries, Light & Heavy Engineering Manufacturing and Service Industry of a Pionerring Nature]
Textiles
Software
Gems and Jewellery
Agriculture, Dairy & Livestock Development
Trading Houses
Regional Operating Headquarters
Tourism Recreation and Leisure Projects
Housing
Two-tier Hospitals
Infrastructure Development
Training Facilities
Investment Incentives
The Sri Lankan Government offers a wide range of incentives for investors. These incentives are available to both foreign and domestic investors, without preference, provided the investment is undertaken through a company incorporated in Sri Lanka.
Incentives offered fall under two classes or "regimes" and the investor may be eligible for inducements proviced by either of these regimes.
These are :-
BOI incentives under Section 17 of the BOI law
General incentives under the "normal laws" of the country
When an agreement is signed with the BOI the incentives granted and commitments made cannot be changed by successive governments.
The grant of incentives depends on the type of the project proposed. Enterprises which meet specific criteria qualify for incentives under Section 17 of the BOI Law, the incentives include:
Tax holidays from 5 to 20 years
Concessionary Tax at 15 % after expiry of tax holiday
Import Duty Exemption from Capital Goods
Import Duty Exemption on Raw Materials if utilised for export
Exemption from Exchange Controls
No restriction on repatriation of dividends profits, etc.
Free transferability of shares
The right to 100 % foreign ownership in almost all sectors of the economy
Concessionary Taxation on expatriates income
Board of Investment
The BOI is structured to function as a central facilitation point for investors, providing advice and assistance at every stage of the investment process. It is the only organisation an investor needs to contact.
Further details can be obtained from BOI website : http://www.BOIsrilanka.org
Email : infoboi@itmin.com
Telephone : (94-1) 434403-5, 447531, 435027, 346131-3
Fax : (94-1) 447995, 430512
Telex : 21332 ECONCOM CE
BOARD OF INVESTMENT OF SRI LANKA
16th Floor, West Tower
World Trade Centre
Colombo 1
This page was last updated on 10/25/07.