Frequently Ask Questions
The Investment Promotion Ministry is responsible for regulating foreign and local investments in the country and the formulation, implementation, follow-up, and evaluation of policies, programs, and projects related to the institutions under its scope.
The process for registering a foreign investment in Sri Lanka is simple and streamlined. Investors can register their investments with the Board of Investment of Sri Lanka (BOI) or the Registrar of Companies.
Step 1
In accordance with Section 6 and 7 of the Companies Act No. 7 of 2007 the first step is to check the availability of the proposed name of the Company.
Step 2
Application for registration of the proposed Company by submitting Articles of Association together with the forms described below.
ROC Online registration – Gives details of type and name of the company, registered address of the company, Details of initial Directors, Secretary/ies and Shareholders.
Form 18 – Consent of Directors
Form 19 – Consent of Secretary/ies
If the company is coming under the BOI regime, the draft Articles of Association should be submitted for approval of the Executive Director (Legal), BOI prior to incorporation of the company.
DEPARTMENT OF THE REGISTRAR OF COMPANIES
400, D.R.Wijewardena Mawatha, Colombo 10, Sri Lanka
Tel: 0094-11-2689208 , 0094-11-2689209
Fax: 0094-11-2689211
e-mail:info@drc.gov.lk Website: https://www.drc.gov.lk/intro/
The Board of Investment of Sri Lanka (BOI) is a government agency under the Investment Promotion Ministry responsible for facilitating, promoting, and attracting foreign direct investments into the country.
Yes, foreign direct investments must comply with the applicable laws and regulations of the government of Sri Lanka. Additionally, all foreign investors must obtain an investment permit from the Board of Investment of Sri Lanka before investing in the country.
For more- https://investsrilanka.com/wp-content/uploads/2023/01/InvestmentGuide2022.pdf
Investors are offered a range of incentives, including tax holiday periods, concessions for imports and exports of goods, duty free access to investments, exemption from foreign exchange regulations, streamlined administrative processes and several other fiscal benefits.
For more- https://investsrilanka.com/wp-content/uploads/2023/05/Investment-Incentives-29.05.2023.pdf
Sri Lanka offers investment opportunities in a wide range of sectors, including infrastructure, tourism, ICT, agriculture, manufacturing, and energy. The government of Sri Lanka has identified these sectors as key growth areas and is actively seeking foreign investors to invest in them.
For more https://investsrilanka.com/wp-content/uploads/2023/03/Ready-to-Invest-BOISL.pdf
There are two types of projects such as projects operating under Sec.17 of the BOI Law and projects operating under Sec.16 of the BOI Law (under Normal Law of the Country). Under the first one, BOI is empowered to approve projects and enter into agreements with enterprises granting exemptions from laws such as Customs Ordinance, subject to fulfillment of the investment threshold or any other specified requirement.
Sec. 17 projects that meet the minimum investment threshold of US$ 3 Mn upwards, can enjoy special incentives in the form of enhanced capital allowances under the Inland Revenue Act No 24 of 2017. Projects with investments of over USD 50 Mn will be granted PAL and CESS exemptions during the Project Implementation period.
This can either be a 100% foreign investment or a joint venture investment with local collaboration. Proposed foreign investments should be effected from funds remitted through an Inward Investment Account (IIA).
On the other hand, projects approved under Section 16 of BOI Law facilitate the entry of foreign investment without any fiscal concessions.
These projects are subject to the normal laws of the country and BOI will facilitate these companies in the following:
- Entry of foreign investment
- Set up a new company with foreign shareholding
- Transfer/issue new shares in an existing non BOI company to foreign investors
- Issuing visa recommendations.
The minimum investment threshold for Section 16 is US$ 250,000. This can either be a 100% foreign investment or a joint venture investment with local collaboration. Proposed foreign investments should be effected from funds remitted through an Inward Investment Account (IIA).
The timeline for setting up an investment project in Sri Lanka with BOI support depends on the size and complexity of the project, but typically takes around 3-4 months.
Sri Lanka is particularly interested in high-value, high-tech, and export-oriented projects that create significant employment opportunities and contribute to economic growth in Sri Lanka.
BOI supports foreign investors in Sri Lanka by providing guidance and assistance on project feasibility, regulatory compliance, and online administrative procedures.
The process for obtaining BOI approval involves the submission of a project proposal, review and evaluation by BOI officials, and in some cases, a site visit to assess the proposed project site.
BOI offers after-care services to investors post-investment, including advisory support, facilitation of regulatory compliance including Import/Export facilitation, and assistance in resolving any issues related to their investment projects.
The Investor Facilitation Centre (IFC) offers a one-stop-shop experience for investors by providing an efficient service to investors while streamlining the investment approval process and strengthening interagency coordination. The IFC is located at the 27th floor, West Tower of the World Trade Centre (WTC) in Colombo, Sri Lanka.
The “Partnership Finder”(PF), is a new strategic initiative to attract investments and facilitate business partnerships between existing investors in the country and new entrepren-eurs & innovators with novel ideas. Through the PF, the BOI hopes to explore possibilities of linking companies/ individuals with similar business interests, in order to promote joint ventures and collaborations for further business development. New innovators would also be able to provide details of innovative ideas as per the category relevance.
The long-term visa program primarily aims to facilitate the investors who wish to embark on a journey with the BOI.
For comprehensive details – https://www.investsrilanka.com/wp-content/uploads/2022/12/Long-term-residence-VISA-for-foreign-investors.pdf
- Approval and facilitation for Export / Import Documentation & Recommendation of the expatriate visa
- Engineering approvals such as building plans, site clearance, issuance of certificate of conformity & provision of dedicated infrastructure facilities such as centralized water and sewerage treatment facilities
- 24 x 7 Cargo Verification
- 24 x 7 fire service with firefighting, monitoring & advisory services
- 24 x 7 overall security coverage
- Environment monitoring, facilities, leisure parks
- International transport facilities, bus terminals
- Centralizaed solid waste handling mechanism
- Provision of lands for prospective projects
- Entry Visa / Multiple Entry Business Visa
- Residence Visa
- Extension of Residence Visa
- Temporary Visa (maximum 03 months only)
Investors and expatriate employees should arrive in Sri Lanka using Entry Visa and within one month from the date of arrival to the country, Entry Visa needs to be converted to Residence Visa with the recommendation of BOI.
If the applicant leaves 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.
- Facilitate to meet the manpower requirement through job placement centres (Job Banks https://investsrilanka.com/JOBBANK/boihome.php%20)
- Organizing the programme / workshop to educate the employees on positive thinking / Industrial Safety and Health Services etc.,
- Encourage to offer special career development programme for the employees (e.g. Foreign training).
- Facilitate to resolve the industrial disputes speedily.
- Establishment of Day Care Centres in EPZs for the children of EPZ employees
Foreign investors can contact BOI through its website, email, or by visiting one of its regional or international offices for more information and support on investing in Sri Lanka.