In carrying out its primary function of investment promotion, the BOI aims at sector based investor targeting, while specializing in aftercare, navigating and regulating investor operations to reach its true and highest potential throughout the lifespan of the enterprise. More
The Government is committed in facilitating, protecting, and promoting a liberal investment climate in Sri Lanka by continuing to re-align the systems and procedures to suit the modern business needs. Adaptive and educated workforce, quality of living, access to fast developing infrastructure, and facilitation, are some of the advantages that the potential investor will have. More
Areas of investment :
IT and IT Enabled sector
Logistics : Sri Lanka enjoys a unique advantage through its location on a key East-West trade route while being on the doorstep of India, which is the largest economy in this part of the world :
Manufacturing
Tourism and Leisure
Food Processing
Electrical and Electronics
Auto components
Investment Opportunities in Port City
Port City Colombo was identified as one of the priority projects in the Central Business District and the Colombo Metro Area (CMA). The plan aims to innovate and design a new world-leading city development based on best international experience, especially adapted to the Sri Lankan context and the site specific conditions.
The COLOMBO PORT CITY Master Plan will provide detailed land use regulations and development control regulations (DCR) to ensure all participants in the development of Colombo Port City, including architects, designers, builders, developers and operators contribute to the realization of the desired vision and character for the new city.
This square is a destination along the marina-walk with long-reaching views towards the sea.
Yamuna Jayaratne
Director Sales & Marketing
Mobile: +94 76 454 8583
Email: yamunaj@chec.lk
Land phone: +94 117 220 088
Radhika Ellepola
Country Manager Sales and Investor Relations – Sri Lanka
Mobile: +94 77 265 9145
Email: radhikae@chec.lk
Land phone: +94 117 220 088
– Foreign investors are permitted 100% ownership in most areas except for a few restricted areas given below
Exclusions:-
A company proposing to carry on any of the following businesses:
i. Pawn broking
ii. Retail trade with a capital of less than Five Million US Dollars
iii. Coastal Fishing
Limitations:-
Foreign investments in the areas listed below will be approved only up to 40% of the stated capital of such company or if a special approval has been granted by the Board of Investment of Sri Lanka for a higher percentage of foreign investment in any company, only up to such higher percentage.
i. Production of goods where Sri Lanka’s exports are subject to internationally determined quota restrictions
ii. Growing and primary processing of tea, rubber, coconut, cocoa, rice, sugar and spices
iii. Mining and primary processing of non-renewable national resources
iv. Timber based industries using local timber
v. Deep Sea Fishing (as defined by the Ministry assigned the subject of Fisheries)
vi. Mass Communication
vii. Education
viii. Freight Forwarding
ix. Travel Agencies
x. Shipping Agencies
– Under the purview of the BOI, an investor can make an investment either under Section 17 of BOI law or Section 16 BOI law of the Sri Lanka
– For Section 16 of BOI law of the country, the minimum investment should be US$ 250,000
– Under Section 17 of BOI law, investor will qualify for concessions and incentives provided that they meet investment criteria.
Investment Thresholds for BOI Approval under Section 17 of BOI Law
| Category | Qualifying Criteria Minimum Investment (USD) |
|---|---|
| 1. Manufacturing | |
| 1.1 Manufacture of non-traditional goods √1 for export including deemed exports | 500,000 |
| 1.2 Manufacturing of non-traditional goods using advanced technology (Local Market) | 5,000,000 |
| 1.3 Large scale manufacturing of non- traditional goods as approved by the Board (Local Market) | 5,000,000 |
| 2. Services | |
| 2.1 Information Technology (IT) and/or IT enabled services √3 | 150,000 |
| 2.2 Information Technology (IT) and/or IT enabled services (Local Market) | 150,000 |
| 2.3 BPO Industry | 150,000 |
| 2.4 Tourism & Leisure | 500,000 |
| 2.5 Utilities (Power generation, water supply, waste management etc.) | 500,000 |
| 2.6 Export-oriented services √2 | 500,000 |
| 2.7 Warehouse, logistic and Supply Chain Management and Cold Storage | 500,000 |
| 2.8 Training Institutes | 100,000 |
| 2.9 Research & Development √4 | 100,000 |
| 2.10 Large scale service projects as approved by the Board local market | 5,000,000 |
| 2.11 Regional Operating Head Quarters | 250,000 |
| 2.12 Export Trading House Exporting entirety of locally procured manufactured products or re-exporting the entirety of imported products. Location should be within the EPZ or an approved customs bonded warehouse located outside EPZ | 5,000,000 (Annual turnover) |
| 3 Agriculture √5 and Argo Processing | |
| 3.1 Agriculture and Argo Processing (Raw materials for the product to be sourced locally) (Export Market) | 150,000 |
| 3.2 Agriculture and Argo Processing (Raw materials for the product to be sourced locally) (Local Market) | 150,000 |
| 4 Infrastructure | |
| 4.1 Small Scale Infrastructure Projects: | |
| (a) Construction and operation of Hospitals | 500,000 |
| (b) Any other Infrastructure construction activity as approved by the Board | 5,000,000 |
| - For Housing Projects | 3,000,000 |
| 4.2 Large Scale Infrastructure Projects as approved by the Board • Power generation, transmission & distribution • Development of Highways, Sea Ports, Air Ports, Public transport, Railways, Water services • Establishment of Industrial Estates including Develop and management of Industrial Estates/ Special Economic Zones • Any other Infrastructure projects approved by the Board | 12,500,000 |
The transfer of title of any land situated in Sri Lanka was prohibited if such transfer is;
(a) To a foreigner; or
(b) To a company incorporated in Sri Lanka under the Companies Act, where any foreign shareholding in such company, either direct or indirect, is 50% or above; or
(c) To a foreign company.
The foreign investors are eligible to lease lands in Sri Lanka to establish their projects. The land lease period is subject to a maximum tenure of 99 years. Foreign investors are not liable to pay any lease tax when leasing a land.
Outright transfers will only be permitted when the foreign shareholding is less than 50%. However, foreign entities, if listed on the Colombo Stock Exchange (CSE) is entitled to purchase freehold land in Sri Lanka.
Further, condominium properties can be purchased outright with no restrictions on nationality.
The BOI recommends different type of visas for Investors, dependents, and expatriate workers of BOI approved projects under sec. 17 & sec. 16 of the BOI Law.
Type of visa recommendation
– Entry Visa / Multiple Entry Business Visa
– Residence Visa / Special Residence Visa
– Extension of Residence Visa
– Temporary Visa (maximum 03 months only)
Investors and expatriate employees should arrive in Sri Lanka using Entry Visa or business visa and within one month from the date of arrival Entry Visa to be converted to Residence Visa with the recommendation of the BOI.
If the applicant leaves from the country within the Entry Visa period (One month), no provisions are available to convert the same Entry Visa to Residence Visa, unless a fresh Entry Visa application is submitted.
Temporary Visa will be recommended for contracted technical workers (expatriates) for a period of 3 months for specific assignments after evaluation of such activities.
Visa category / Project type & Validity period
Entry Visa – 01 month from the date of arrival
Residence Visa – 01 year from the date of arrival
Extension of Residence Visa
– 02 years for (Sec.17 Projects)
– 01 year for (Sec.16 Projects)
Temporary Visa – Installation work – expatriates only
Special Residence Visa- 01 year (Investor on Electronic Travel Authorization – ETA Visa)
(e.g. Sri Lankan / Child Born in Sri Lanka)
– Capital Investments shall be made through an “Inward Investment Account (IIA)”
– Income from such investments and proceeds of disposal shall be credited to IIA
| Section 17 | Currency | Amount |
|---|---|---|
| Investment application processing | US$ | 275 |
| Agreement Processing Fees - Strategic Development Project - For Other Projects | US$ | 3,850 |
| Supplementary Agreements | US$ | 2,200 |
| Section 16 | US$ | 550 |
| Investment application processing fees (Sec. 16) | ||
| Processing Fee for perusal of Article of Association of Company | US$ | 330 |
| Non BOI Enterprises | US$ | 170 |
| Lease Agreement Processing Fee for non BOI companies | LKR | 11,000 |
All charges are liable to VAT 8%.
(All charges can be paid on the rupee equivalent as per the prevailing exchange rate)
| Annual Fees | US$ (Per Annum) |
|---|---|
| Section 17 | |
| a. Normal Projects | 2,750 |
| b. Hotel, Hospital, Utilities, Tourism sector Project and any other Infrastructure Project | |
| - During Project Implementation Period | |
| i. Project less than US$ 3 Million | 3,850 |
| ii. Project between not less than US$ 3 Million and not more than US$ 10 Million | 7,260 |
| iii. Project more than US$ 10 Million | 9,680 |
| iv. Strategic Development Project | 18,150 |
| - Thereafter during Tax holidays & Concessionary Tax Period | |
| v. Project less than US$ 3 Million | 2,530 |
| vi. Project between not less than US$ 3 Million and not more than US$ 10 Million | 6,050 |
| vii. Project more than US$ 10 Million | 8,470 |
| viii. Strategic Development Project | 12,100 |
| - After Tax holidays & Concessionary Tax Period /After Project Implementation Period | 1,100 |
| c. Agriculture Projects | 940 |
| d. Coir based Industries and Handicraft Projects | 1,210 |
| Section 16 | |
| Annual License Fee | 400 |
For more information
Board of investment (BOI)
Level 24 & 26 West Tower,
World Trade Center, Echelon Square
Tel: +94 112434403-05
Fax :94112447994
infoboi@boi.lk
www.investsrilanka.com
In carrying out its primary function of investment promotion, the BOI aims at sector based investor targeting, while specializing in aftercare, navigating and regulating investor operations to reach its true and highest potential throughout the lifespan of the enterprise. More
The Government is committed in facilitating, protecting, and promoting a liberal investment climate in Sri Lanka by continuing to re-align the systems and procedures to suit the modern business needs. Adaptive and educated workforce, quality of living, access to fast developing infrastructure, and facilitation, are some of the advantages that the potential investor will have. More
Areas of investment :
IT and IT Enabled sector
Logistics : Sri Lanka enjoys a unique advantage through its location on a key East-West trade route while being on the doorstep of India, which is the largest economy in this part of the world :
Manufacturing
Tourism and Leisure
Food Processing
Electrical and Electronics
Auto components
Investment Opportunities in Port City
Port City Colombo was identified as one of the priority projects in the Central Business District and the Colombo Metro Area (CMA). The plan aims to innovate and design a new world-leading city development based on best international experience, especially adapted to the Sri Lankan context and the site specific conditions.
The COLOMBO PORT CITY Master Plan will provide detailed land use regulations and development control regulations (DCR) to ensure all participants in the development of Colombo Port City, including architects, designers, builders, developers and operators contribute to the realization of the desired vision and character for the new city.
This square is a destination along the marina-walk with long-reaching views towards the sea.
Yamuna Jayaratne
Director Sales & Marketing
Mobile: +94 76 454 8583
Email: yamunaj@chec.lk
Land phone: +94 117 220 088
Radhika Ellepola
Country Manager Sales and Investor Relations – Sri Lanka
Mobile: +94 77 265 9145
Email: radhikae@chec.lk
Land phone: +94 117 220 088
– Foreign investors are permitted 100% ownership in most areas except for a few restricted areas given below
Exclusions:-
A company proposing to carry on any of the following businesses:
i. Pawn broking
ii. Retail trade with a capital of less than Five Million US Dollars
iii. Coastal Fishing
Limitations:-
Foreign investments in the areas listed below will be approved only up to 40% of the stated capital of such company or if a special approval has been granted by the Board of Investment of Sri Lanka for a higher percentage of foreign investment in any company, only up to such higher percentage.
i. Production of goods where Sri Lanka’s exports are subject to internationally determined quota restrictions
ii. Growing and primary processing of tea, rubber, coconut, cocoa, rice, sugar and spices
iii. Mining and primary processing of non-renewable national resources
iv. Timber based industries using local timber
v. Deep Sea Fishing (as defined by the Ministry assigned the subject of Fisheries)
vi. Mass Communication
vii. Education
viii. Freight Forwarding
ix. Travel Agencies
x. Shipping Agencies
– Under the purview of the BOI, an investor can make an investment either under Section 17 of BOI law or Section 16 BOI law of the Sri Lanka
– For Section 16 of BOI law of the country, the minimum investment should be US$ 250,000
– Under Section 17 of BOI law, investor will qualify for concessions and incentives provided that they meet investment criteria.
Investment Thresholds for BOI Approval under Section 17 of BOI Law
| Category | Qualifying Criteria Minimum Investment (USD) |
|---|---|
| 1. Manufacturing | |
| 1.1 Manufacture of non-traditional goods √1 for export including deemed exports | 500,000 |
| 1.2 Manufacturing of non-traditional goods using advanced technology (Local Market) | 5,000,000 |
| 1.3 Large scale manufacturing of non- traditional goods as approved by the Board (Local Market) | 5,000,000 |
| 2. Services | |
| 2.1 Information Technology (IT) and/or IT enabled services √3 | 150,000 |
| 2.2 Information Technology (IT) and/or IT enabled services (Local Market) | 150,000 |
| 2.3 BPO Industry | 150,000 |
| 2.4 Tourism & Leisure | 500,000 |
| 2.5 Utilities (Power generation, water supply, waste management etc.) | 500,000 |
| 2.6 Export-oriented services √2 | 500,000 |
| 2.7 Warehouse, logistic and Supply Chain Management and Cold Storage | 500,000 |
| 2.8 Training Institutes | 100,000 |
| 2.9 Research & Development √4 | 100,000 |
| 2.10 Large scale service projects as approved by the Board local market | 5,000,000 |
| 2.11 Regional Operating Head Quarters | 250,000 |
| 2.12 Export Trading House Exporting entirety of locally procured manufactured products or re-exporting the entirety of imported products. Location should be within the EPZ or an approved customs bonded warehouse located outside EPZ | 5,000,000 (Annual turnover) |
| 3 Agriculture √5 and Argo Processing | |
| 3.1 Agriculture and Argo Processing (Raw materials for the product to be sourced locally) (Export Market) | 150,000 |
| 3.2 Agriculture and Argo Processing (Raw materials for the product to be sourced locally) (Local Market) | 150,000 |
| 4 Infrastructure | |
| 4.1 Small Scale Infrastructure Projects: | |
| (a) Construction and operation of Hospitals | 500,000 |
| (b) Any other Infrastructure construction activity as approved by the Board | 5,000,000 |
| - For Housing Projects | 3,000,000 |
| 4.2 Large Scale Infrastructure Projects as approved by the Board • Power generation, transmission & distribution • Development of Highways, Sea Ports, Air Ports, Public transport, Railways, Water services • Establishment of Industrial Estates including Develop and management of Industrial Estates/ Special Economic Zones • Any other Infrastructure projects approved by the Board | 12,500,000 |
The transfer of title of any land situated in Sri Lanka was prohibited if such transfer is;
(a) To a foreigner; or
(b) To a company incorporated in Sri Lanka under the Companies Act, where any foreign shareholding in such company, either direct or indirect, is 50% or above; or
(c) To a foreign company.
The foreign investors are eligible to lease lands in Sri Lanka to establish their projects. The land lease period is subject to a maximum tenure of 99 years. Foreign investors are not liable to pay any lease tax when leasing a land.
Outright transfers will only be permitted when the foreign shareholding is less than 50%. However, foreign entities, if listed on the Colombo Stock Exchange (CSE) is entitled to purchase freehold land in Sri Lanka.
Further, condominium properties can be purchased outright with no restrictions on nationality.
The BOI recommends different type of visas for Investors, dependents, and expatriate workers of BOI approved projects under sec. 17 & sec. 16 of the BOI Law.
Type of visa recommendation
– Entry Visa / Multiple Entry Business Visa
– Residence Visa / Special Residence Visa
– Extension of Residence Visa
– Temporary Visa (maximum 03 months only)
Investors and expatriate employees should arrive in Sri Lanka using Entry Visa or business visa and within one month from the date of arrival Entry Visa to be converted to Residence Visa with the recommendation of the BOI.
If the applicant leaves from the country within the Entry Visa period (One month), no provisions are available to convert the same Entry Visa to Residence Visa, unless a fresh Entry Visa application is submitted.
Temporary Visa will be recommended for contracted technical workers (expatriates) for a period of 3 months for specific assignments after evaluation of such activities.
Visa category / Project type & Validity period
Entry Visa – 01 month from the date of arrival
Residence Visa – 01 year from the date of arrival
Extension of Residence Visa
– 02 years for (Sec.17 Projects)
– 01 year for (Sec.16 Projects)
Temporary Visa – Installation work – expatriates only
Special Residence Visa- 01 year (Investor on Electronic Travel Authorization – ETA Visa)
(e.g. Sri Lankan / Child Born in Sri Lanka)
– Capital Investments shall be made through an “Inward Investment Account (IIA)”
– Income from such investments and proceeds of disposal shall be credited to IIA
| Section 17 | Currency | Amount |
|---|---|---|
| Investment application processing | US$ | 275 |
| Agreement Processing Fees - Strategic Development Project - For Other Projects | US$ | 3,850 |
| Supplementary Agreements | US$ | 2,200 |
| Section 16 | US$ | 550 |
| Investment application processing fees (Sec. 16) | ||
| Processing Fee for perusal of Article of Association of Company | US$ | 330 |
| Non BOI Enterprises | US$ | 170 |
| Lease Agreement Processing Fee for non BOI companies | LKR | 11,000 |
All charges are liable to VAT 8%.
(All charges can be paid on the rupee equivalent as per the prevailing exchange rate)
| Annual Fees | US$ (Per Annum) |
|---|---|
| Section 17 | |
| a. Normal Projects | 2,750 |
| b. Hotel, Hospital, Utilities, Tourism sector Project and any other Infrastructure Project | |
| - During Project Implementation Period | |
| i. Project less than US$ 3 Million | 3,850 |
| ii. Project between not less than US$ 3 Million and not more than US$ 10 Million | 7,260 |
| iii. Project more than US$ 10 Million | 9,680 |
| iv. Strategic Development Project | 18,150 |
| - Thereafter during Tax holidays & Concessionary Tax Period | |
| v. Project less than US$ 3 Million | 2,530 |
| vi. Project between not less than US$ 3 Million and not more than US$ 10 Million | 6,050 |
| vii. Project more than US$ 10 Million | 8,470 |
| viii. Strategic Development Project | 12,100 |
| - After Tax holidays & Concessionary Tax Period /After Project Implementation Period | 1,100 |
| c. Agriculture Projects | 940 |
| d. Coir based Industries and Handicraft Projects | 1,210 |
| Section 16 | |
| Annual License Fee | 400 |
For more information
Board of investment (BOI)
Level 24 & 26 West Tower,
World Trade Center, Echelon Square
Tel: +94 112434403-05
Fax :94112447994
infoboi@boi.lk
www.investsrilanka.com
13th Floor, 75/6-7 Ocean Tower2 Soi 19, Sukhumvit Rd., Wattana, Bangkok 10110
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