Investment in Sri Lanka

The island gifted with its scenic beauty, unique and rich natural resources and minerals, well-nourished hundreds of rivers nurturing one of the largest untapped ocean regions in the world, instinctively enhances the attractiveness of Sri Lanka as a plausible investment destination for resource centric investments.

The economic growth of the country in comparison to other regional parallels has been maintained over the years and the fast-paced infrastructure developments will upgrade the already high quality of living. Standing tall as the fastest growing middle-income economy in the region, Sri Lanka strives to become an upper-middle income country by the end of 2025. The changing skyline and the promising infrastructure provide investors with a commendable quality of life with access to world class education, heath, banking and other residential facilities. Ranked at number 72 at the Human Development Index - highest rank achieved by a South Asian country, the inherent generosity coupled with its accommodative nature and favourable weather conditions around the year, offer a wide range of incentives and other benefits for its investors.

Being the first and foremost country to liberalize its economy in South Asia, Sri Lanka ensure and guarantee safety and stability of investments through its Constitution and legal framework. Further, with over 26 Bilateral investment protection agreements and over 45 Double Taxation Avoidance agreements signed, Sri Lanka provides investors with much sought after security and market access. The country also has preferential market access under the Free Trade Agreements GSP Schemes along with the regional trade agreements provide a wider market access with attractive tariff concessions.

Why Invest in Sri Lanka

Strategic Location

• Strategically located at the crossroads of major shipping routes.
• Uniquely situated in the backdrop of the Indian subcontinent and within the closest proximity to the international ocean routes that link from Asia to Europe.
•  Proximity to the Indian sub-continent positions the country as a gateway to a market of 1.3 Bn. people.

Fast Developing Infrastructure

2nd in the region for Quality of Infrastructure in Global Competitiveness Index 2019.

Educated and Adaptable workforce

• Sri Lanka ranks 1st in South Asia’s literacy rate.Sri Lanka ranks 1st in South Asia’s literacy rate.
• 2nd most literate population in the Indian subcontinent
• 1st in South Asia in Human Capital Index: Flexible and trainable workforce
• Highly versatile and skilled workforce which is cost competitive, highly productive and bilingual
• Majority of the Sri Lankan workforce consists of highly qualified professionals having extensive experience in numerous fields such as information technology, manufacturing, finance and accounting, fashion design and law
• 2nd largest CIMA pool in the world.
• 30,000 graduates per year.
• 100,000 Tertiary & Vocationally trained students per annum.

Quality of life

Sri Lanka is truly a great place to live and a great place to work. A country of many facets, it offers a spectrum of experiences, people and places that awaits to be discovered. For those who choose to make Colombo their home, a cosmopolitan living environment awaits. Social life is never amiss in this city, with abundant nightlife, world class shopping, theatre, cafes, art and a host of star class hotels that dot the island.

Access to Key Market

• Bi-lateral Trade Agreements
  1. Indo-Lanka FTA
  2. Pakistan-Sri Lanka FTA
  3. Singapore-Sri Lanka FTA
• Regional Trade Agreements
1. South Asian Free Trade Agreement (SAFTA)
2. Asia Pacific Trade Agreements (APTA)
• EU GSP+
• UK DCTS

Competitive Wage Rates

Investment Incentives

The legislative framework geared for an investor friendly investment climate elevates the attractiveness of Sri Lanka as a FDI destination in South Asia.

Investment Protection

Sri Lanka has entered into 25 Bilateral Investment Promotion and Protection Treaties (BITs) so far, providing protection to foreign investments within the country. Sri Lanka has developed its model BIT with a view of cater to the needs of covering the aspects of sustainable development principles in attracting foreign investments.

Avoidance of double taxation

Sri Lanka has entered into Double Taxation Avoidance Agreements (DTAAs) with 45 countries to eliminate or mitigate the incidence of juridical double taxation and avoidance of fiscal evasion in the international trade (or transactions)

Potential Areas for Investment

• Pharmaceuticals
A dedicated pharma zone at Arabokka, Hambantota. More opportunities for Joint Ventures between regional countries and domestic partners.
• High Value Added Apparel
• Electrical & Electronics
• Information Communication Technology (ICT) Fastest growing ICT hub in South Asia. Currently US$ 1 Bn exports and US$ 3 Bn. by 2025. 2nd largest pool globally of UKqualified accountants. 30% lower labour cost than other outsourcing destinations.
• Rubber Based Industry World largest Solid tyre exporter. 5th largest latex gloves exporter. The 13th largest rubber producer in the world.
• Agriculture and Food Processing
• Hospitality and Tourism
• Infrastructure & Construction

Mega Investment Opportunities

• Investment opportunities in Port City Colombo

For More information please visit BOI Sri Lanka Website:
http://investsrilanka.com/