Investment of sri lanka

Sri Lanka remains one of the most attractive investment destinations in the Asia-Pacific region. Over two decades, successive governments have pursued a policy of economic liberalization with the emphasis on local private sector investment and foreign investment.

Sri Lanka and Egypt have signed:

(a) An Agreement for Promotion and Protection of Reciprocal Investment.

(b) An Agreement for the Avoidance of Double Taxation, with a view to promoting bilateral investment between the two countries.

Sri Lanka is also a founder member of the Multilateral Investment Guarantee Agency (MIGA). This provides further safeguards against expropriation and non-commercial risk. Investors may also refer disputes for arbitration under the rules of the International Chamber of Commerce.

Investment is welcomed in all sectors of the economy except a few areas.

The government has never defaulted nor requested rescheduling of any of its international obligations. Significantly, this extends to protection given to foreign investors.

The safety of foreign investment is also guaranteed through the acceptance by a two-thirds majority of Parliament of the Constitutional Guarantee of Investment Protection Agreements. Under Article 157 of the country’s Constitution, the agreement enjoys the force of law and no legislative, executive nor administrative action can be taken to contravene it.

  • Concessions and Incentives for foreign investors in Sri Lanka:
    • Tax holidays from 5 to 20 years
    • Concessionary tax at 15% after expiry of Tax holiday
    • Import Duty exemption for Capital Goods
    • Import Duty Exemption on Raw Materials if utilized 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
  • Free Trade Zones:
    • Katunayake EPZ
    • Biyagama EPZ
    • Koggala EPZ
    • Malwatte EPZ
    • Mirigama EPZ
    • Wathupitiwela EPZ
    • Mawathagama EPZ
    • Polgahawela EPZ
  • Main Investor countries:
    • Australia
    • Germany
    • Japan
    • Scandinavian countries
    • Singapore
    • Korea
    • the U.K.
    • the U.S.A.For detailed information: