A very common practice is to form companies to own land. There is a ceiling of 50 acres on the ownership of agricultural land. This is the maximum extent that can be held by an individual or a company.

The Board of Investment of Sri Lanka (BOI) is set up by the Government of Sri Lanka, under the Board of Investment of Sri Lanka Law No.4 of 1978, as amended. It is a body corporate and vested with powers, such as power to enter into agreements with any enterprise and to grant exemptions from any law, referred to in such law, or to modify or vary the application of such laws, to such enterprises in accordance with such regulations as may be made by the relevant Minister.

Some of such powers are to grant exemptions from or to modify or vary the application to enterprises, approved by BOI, of the laws governing Revenue, Customs and Exchange Control.

With these powers, the BOI gives various fiscal incentives and concessions including exemptions from income tax, import and export duties and exchange control to enterprises approved by the BOI according to BOI's assessment of the ability of an enterprise to satisfy certain specified criteria.