Rules should know

INVESTMENT PROMOTION AND INCENTIVES 

The Board of Investment (BOI) of Sri Lanka is the central facilitation point for foreign investments. The BOI provides assistance and advice throughout the investment process an initial point of inquiry through project approval, implementation, monitoring and aftercare facilities.The BOI currently facilitates investors on a sector-focused approach and has established the "Investor Facilitation Centre" on 26th floor, West Tower, World Trade Centre, Colombo 1, for this purpose.

BOI Incentives: 

The BOI offers tax holidays ranging from 3 to 15 years for investors in districts other than Colombo and Gampaha. The categories where incentives are offered are as follows :

  •  Export oriented manufacturing and services
  •  Tourism and leisure
  • Agriculture and food processing
  •  IT/IT enabled services and BPOs
  •  Education and training  
  • Power generation and infrastructure

Note : According to a United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) media release, Instead of providing traditional tax holidays for investments , Sri Lanka has moved to a new incentive regime with the introduction of the new Inland Revenue Act. Accordingly, investors will be granted Incentives by way of Accelerated Depreciation Allowance (ADA) and Tax Credits (TC) based on the investments made on depreciable assets. ( Further more Please click here )

(Source : Sri Lanka (October 2017) 7th Meeting of the Asia Pacific FDI Network, Thailand )

However, it is recommended that a potential investor checks with the BOI Sri Lanka for the latest changes to this policy as at the time of writing the BOI had not yet reflected the above change on its official website. The BOI has a point of contact for investors which can be reached via BOI Sri Lanka

Additionally, imports of both capital goods and raw materials are duty free for export oriented industries/services. Only the following capital goods are entitled to duty free :48

  •  Infrastructure projects
  • IT/IT enabled services
  •  Regional operating headquarters
  •  Agriculture

Additional special package of tax incentives ranging from 10 – 20 years is offered for investment in the Eastern and Northern Provinces.

For further information , Please see information under Rules--> Investment menu