(c) Certain portions of this article have been extracted from the Board of Investment Sri Lanka, website (www.boi.lk)
With the end of the armed conflict in Sri Lanka in May 2009, there is a heightened interest in Sri Lanka as a destination for business and investment. Its strategic location close to India and the east-west international sea route; democratic system of governance with a constitution and rule of law; prospects of higher growth rates in the immediate future; and a vast latent potential for absorbing investments make it an ideal destination to look forward to doing business with this country.
For centuries known as the pearl of the Indian Ocean, Sri Lanka has been the cynosure of business interest from as far back as 1500BC. Its legacy of spice trading was foremost in establishing the nation as a focal maritime hub and an important port and trading post in the ancient world. These factors continue to operate in the modern times as well.
Why Sri Lanka
- Strategic location close to India and at cross-roads of east-west international shipping route
- Relatively open economy: Foreign investment is an important element in Sri Lanka's economic growth model and is actively encouraged
- Growing relations with India: Free Trade Agreement between India and Sri Lanka is currently in operation offers access to Indian market. These openings are sought to be extended further through a bilateral Comprehensive Economic Partnership Agreemen
- Highly literate (over 91%) and educated labour force offers human resources with comparative skill at competitive costs
- End of armed conflict offers significant business opportunities, in particular, for the rehabilitation and reconstruction of northern and eastern areas. The so called “Peace Divident” is operational in Sri Lanka
- Political stability, Increased Remittance, Better Investment Prospects, Enhanced FDI
- Colombo Port: ranked the best port in South Asia by Lloyds Register
- Wide range of incentives provided by the Board of Investments (BOI) including tax holidays and import duty exemptions
- Sri Lanka is ranked as the most liberalized economy in South Asia
- Investors are provided with preferential tax rates, constitutional guarantees on investment agreements, exemptions from exchange control and 100% repatriation of profits
- Immediate Takeoffs: Tourism, fisheries, agriculture, construction and financial services
