INVESTMENT OPPORTUNITIES IN
SRI LANKA
Sri Lanka
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Total Land Area: 65,610 s.q. km
Population: 20.48 Million
Commercial capital & largest city: Colombo
Currency: Sri Lankan Rupee (LKR)
GDP Growth Rate: 7.3% (2013)
Per Capita GDP Income: US$ 3,280 (2013)
Literacy rate: 95.6%
Facilitation Body for Foreign
Investments
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The Board of Investment of Sri Lanka
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The central facilitation point for investors for assistance and advice throughout the investment process
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36 yrs of experience, an engine of growth creating a considerable impact on the country's economic development
Committed towards continuously improving the country's investment climate
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BOI companies today employ over 470,000 workers
65% % of Sri Lankan exports and 86% of the country's industrial exports
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Agreement with the BOI remains valid for the life of the enterprise . Provisions unalterable by successive govts.
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Facilitates investors on a sector-focused approach, covering all vital areas of the economy.
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Country specific information, can be obtained from Country Desk Officer pertaining to the origin of your
investment.
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Note :
An investment application form can be obtained from the relevant sector.
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Duly completed application forms need to be handed over to the relevant sector heads.
The sectors will act as relationship managers for all investors in their sector, from project evaluation to
implementation to post - investment aftercare.
Hours of Operation are Monday to Friday : 8.30am to 4.30pm (GMT +5.30)
Why Sri Lanka?
A) Strong Resilient Economy
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Peaceful domestic environment, favorable government policies & improved
investor confidence  commendable performance in 2013
The improved performances in all key sectors  high economic growth
Services sector: largest contributor to national economy 56.8%
The strong economic performances  lifted country's per capita income 
graduated to middle income status from the list of Poverty reduction &
Growth Trust (PRGT) eligible countries
Government plans to transform Sri Lanka into a strategically important
economic centre by developing five strategic hubs:
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Knowledge hub
Commercial hub
Naval & maritime hub
Aviation hub
Energy hub
Development of hubs based on Sri Lanka's strategic location & resources
Why Sri Lanka?
B) Supportive Government Policies
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Pioneer of economic liberalization among South Asia (3+ decades ago)
Government has embraced Strategies and policies conducive for international investment embraced
Transparent investment laws that aim to foster foreign direct investments:
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Total foreign ownership
No restrictions on repatriation of earnings, fees, capital, and on forex transactions relating to current account payments.
Safety of foreign investment - guaranteed by the constitution.
Existence of a transparent legal and regulatory framework, covering all prerequisite business law enactments.
Bilateral investment protection agreements (28 countries) & double taxation avoidance agreements (38 countries)
Founder member of the Multilateral Investment Guarantee Agency (MIGA)
According to the Index of Economic Freedom (2014), Sri Lanka has been ranked 90 of 186 countries
Index of World Economic Freedom Rankings -2014
Country
World Ranking
Country
World Ranking
Singapore
2
Indonesia
100
Korea, South
31
India
119
Malaysia
37
Pakistan
126
Thailand
72
Bangladesh
131
Philippines
89
China
137
Sri Lanka
90
Vietnam
147
Burma
162
Nepal
149
Iran
173
Why Sri Lanka?
B) Supportive Government Policies (contd..)
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Efforts intensified to attract investments to target sectors in which Sri Lanka has strong
foundation for growth + to areas where it is nationally important to develop.
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Incentives to induce high value investment to priority sectors. BOI promotes
diversification of Sri Lanka's industry and services with special focus on advanced
technology and value addition.
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Amendments to the tax system  overall tax regime for all sectors will be less complex
and at a lower rate across the economy.
Target Sectors Actively Promoted by Sri Lanka through Board of Investment (BOI)
1.
Target Sectors Actively Promoted by Sri Lanka through Board of Investment (BOI)
2.
Export Oriented Manufacturing
3.
Export Oriented Services
4.
Tourism, Tourism Related Projects
5.
Infrastructure Projects
6.
Higher Education/Skill Development
7.
Value Added Strategic Projects
8.
Agriculture (Agro Processing, Fish Based Industry, Dairy)
9.
Establishment of Industrial Estates, Special Economic Zones, Knowledge Cities.
Why Sri Lanka?
C) Educated and Adaptable Workforce
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2011: most literate population in South Asia - 94.2% (Male: 91.1% and Female: 93.5%)
Investment in public education  a competent, intelligent, trainable workforce that's comfortable
with high tech production and services
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50% of the students who have completed higher education are trained in technical and business
disciplines
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Business language: English
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Well educated and energetic, skilled and semi-skilled human resources are readily available at
competitive wage rates.
Literacy Rates of Selected Asian Countries in 2011
Country
Literacy Rate %
World Ranking
Thailand
Indonesia
Malaysia
Sri Lanka
Vietnam
India
Bangladesh
Pakistan
94.1
92
92.5
94.2
92.8
74.1
55.9
62.2
84
94
92
83
91
139
164
159
Source : UNDP Report, 2011
Why Sri Lanka?
C) Educated and Adaptable Workforce (contd…)
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Labour force: 49.8 % of the population - men 67.8% & women 33.4%
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Reputed for its precision, quality and productivity
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Skilled and semi-skilled workers at competitive wage rates
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Renowned for high caliber professional skills esp. in Financial
Accounting and Marketing sectors
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World class reputation in the production of high end garments and
lingerie markets
Country
Bangladesh
Sri Lanka
Pakistan
Vietnam
India
Indonesia
Thailand
Wage Rates - 2013
Min. Wage
(USD/Month)
[probationer to skilled
worker]
39 - 109 *
73 - 82 *
82
145
28 - 155 *
226
9.85 / Day
Factory Worker Monthly
Base Salary
(USD/Month)
74
108
173
113
276
239
345
Source: Investment related costs in Asia and Oceania, 23rd Survey, JETRO, 2013
Why Sri Lanka?
D) Location and Connectivity
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Situated at the crossroads of major shipping routes connecting
South Asia, Far East and the Pacific with Europe and the Americas.
Located next to the fast growing Indian sub-continent with close
proximity to Southeast Asia and the Middle East.
Strong air connectivity with over 100 weekly flights to India alone.
Connected to the SEA-ME-WE III and IV (South East Asia – Middle
East – Western Europe) fibre optic communication backbone with
over 11 communication satellites orbiting above the south of the
country.
Why Sri Lanka?
E) Vibrant Business Environment
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The most liberalized economy in South Asia
1978: Open market free economic policies adapted
Successive governments further liberalized the economy, leading to
deregulation, greater privatization and opening the economy to
international competition
Transparent investment laws aim to foster foreign direct
investments
100% foreign ownership of companies permitted ie. local partners
for foreign investments - not required
100% repatriation of annual earnings/ profits permitted ie. reinvestment of proportion in the business – not stipulated
Never defaulted international debt obligations
Commercial laws are based on British laws + highly independent
judicial system
Safety of foreign investments guaranteed by the Constitution ie.
foreign owned assets cannot be expropriated
Why Sri Lanka?
E) Vibrant Business Environment (contd…)
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Strong Intellectual Property law in line with WIPO and WTO
regulations
Guaranteed national treatment ie. no discrimination
between a local and a foreign investor
Insurance cover against political risk from Multilateral Investment
Guarantee Agency (MIGA) (Sri Lanka is a signatory)
Sense of security & financial advantage (due to the attractive tax
holidays) guaranteed by :
 Bilateral Investment Protection Agreement with 28 countries
 Double Tax Avoidance Agreements with 38 countries including
Saudi Arabia on limited basis
Dynamic and resilient private sector - possible joint venture
partnership for foreign investors.
Concessions granted under an agreement with the Board of
Investment – for qualifying investment projects - remain valid over
the lifetime of the enterprise
Why Sri Lanka?
F) Investment Protection and Double Taxation
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One of the safest countries in the world to invest
Mechanisms in place to protect investors:
Article 157 of the constitution guarantees the safety of
investment protection treaties and agreements
approved by parliament by a two thirds majority
 Signed Bilateral Investment Protection Agreements (IPA)
with 28 countries
 Independent system of courts which can redress any
concerns of investors
 Bilateral Double Tax Avoidance Agreements with 38
countries.
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Bilateral Investment Treaties signed with:
Australia
France
Republic of Korea
Singapore
Belgium-Luxembourg
Germany
Kuwait
Sweden
China
India
Malaysia
Switzerland
Czech Republic
Indonesia
Netherlands
Thailand
Denmark
Iran
Norway
United Kingdom
Egypt
Italy
Pakistan
USA
Finland
Japan
Romania
Vietnam
Double Taxation Avoidance Agreements signed
with:
Australia
Italy
Qatar
Bangladesh
Japan
Romania
Belgium
Korea (Republic of)
Russia
Canada
Kuwait
Saudi Arabia (Limited)
China
Malaysia
Singapore
Denmark
Mauritius
Sweden
Finland
Nepal
Switzerland
France
Netherlands
Thailand
Germany
Norway
UAE
Hong Kong (Limited)
Oman (Limited)
United Kingdom
India
Pakistan
USA
Indonesia
Philippines
Vietnam
Iran
Poland
Why Sri Lanka?
G) Incentives for Investments
• Granting of Tax Holidays from 4 -12 years depending on the value of the
Investment
• Min. Investment LKR 25 ml/ $ 0.25 ml
• Corporate tax for Export Oriented Activities (90% export)/ Tourism/
Construction, Industry/ Petroleum Exploration
• Duty Free Imports : Capital Goods and Raw materials for Export Oriented
Activities, Capital Goods only (for all other categories)
• Exemption from Exchange Control: For Companies that export goods
(Minimum 90% of total output) and for companies receiving earnings in
Foreign Currency for export services
Why Sri Lanka?
H) Quality of Life
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Colombo city: A cosmopolitan living environment
Abundant nightlife, world-class shopping, theatre, cafes, art & star
class hotels
Comfortable housing: Luxury condominium apartments ideal for
expatriates
Internationally recognized institutions of healthcare & excellent
medical facilities
Educational institutions of international standards
World-class recreational sites
Equable climate throughout the year
Unparalleled natural beauty
Why Sri Lanka?
I) Access to Key Markets
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Only country in the world that has Free Trade Agreements with both India and
Pakistan
Market access on a duty free basis to a total market size of 1.5 Billion people middle class of 500 Mn people (size of entire European Union)
Indo-Sri Lanka FTA (2000) : 100% duty free access to India for 4,232 products.
Trade growth by 5+ times.
Pakistan-Sri Lanka FTA (2005) : 100% duty free access to Pakistan for 4,686
products. Trade growth by 3 times.
[Note: 1) To qualify under the above FTAs products need to be wholly produced or
have a domestic value addition of 35% value addition FOB level, 2) The HScode
transformation needs to be at the 4 digit level for the ISLFTA and 6 digit level
PSLFTA. Details provided the BOI website ]
By locating in Sri Lanka, a company can gain preferential trade access to two large
regional blocs under the South Asian Free Trade Area(SAFTA) and Asia Pacific Trade
Agreement (APTA)
Non -Reciprocal market access to EU and the USA, Japan, Canada, Russia etc, under
GSP
FTA with China under negotiations
Preferential market access
for products of Sri Lanka
origin
Why Sri Lanka?
J) Rapidly Developing Infrastructure
The Sri Lankan government has launched an ambitious program of physical infrastructure development to
completely upgrade the sea, air, road, power and telecom backbone of the country. Main features of this
program:
1) Sea Port and Airport Development: Colombo South Port Expansion
• The Sri Lankan government has declared its intention to develop the country as a leading regional aviation,
navigation and trading hub in South Asia
• Development of maritime & aviation transportation is infrastructure development agenda.
•Focus: To expand the capacity and improve the efficiency of existing ports through modernization and
construction of new ports and airports in strategic locations.
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World Port ranking: No. 1 in South Asia
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Total container throughput 4 Mn. TEUs
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Transshipment cargo 70%
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33 major shipping lines
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14 feeder services
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Capacity to be increased - 12 million TEUs
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12 new berths
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Will be the deepest port in the region
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New port being constructed in South Eastern Sri Lanka
Colombo South port development
(under construction)
Why Sri Lanka?
J) Rapidly Developing Infrastructure (contd…)
2) Hambantota Port Development
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Phase I of the project, the Mahinda Rajapaksa
Magampura Port, was inaugurated in November 2010.
The port is expected initially to function as a service and
industrial port and later be developed to handle
transshipment cargo.
Phase II of the port is underway at an estimated cost of
US$ 800 Mn. The port is ideally located to serve the
main East-West shipping lane connecting Europe and
the Middle-east with South East Asia.
The bunkering facilities at the Port of Hambantota, set
up at a cost of US$ 76.5 million, and the tank farm has
commenced commercial operations.
Out of the 14 tanks it has, eight tanks will be used to
store marine fuel, three will store aviation fuel and three
remaining tanks will be used to store liquid petroleum.
The aviation fuel stored in the Hambantota Port is to be
used for the Mattala Airport, the second international
airport currently being built in Hambantota.
3) Expansion of Bandaranaike International Airport
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A project is under way to expand the island's first
international airport at Katunayake, 35 km north
of Colombo.
The project includes the expansion of the transit
area, construction of new baggage-reclaim area,
multi storied car park and widening of the existing
runway.
A feasibility study is being carried out for a
second runway.
Why Sri Lanka?
J) Rapidly Developing Infrastructure (contd…)
4) Development of High Mobility Road Network
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Road development in the country, which was left behind last few decades due to the war, has been
given prominence by the government.
The national Road Master Plan has already been prepared, which focuses on the construction of
highways, widening of highways, reduction of traffic congestion, road maintenance & rehabilitation
and bridge rehabilitation & reconstruction.
It has become an urgent necessity for further investment in road network, thus the development of
road network has become a major determinant factor in attracting new investments to the country.
a) Colombo - Katunayake Expressway - CKE (25km)
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The Colombo – Katunayake Expressway connects the Colombo City and the International Airport at Katunayake. It
consists of four Interchanges at New Kelani Bridge, Peliyagoda, Ja-Ela and Katunayake. The Contract value of the
project is US$ 292 Mn. Construction was completed and opened for the public on 27th of October 2013 by his
Excellency the president Hon. Mahinda Rajapakse.
The CKE will reduce the travel time between Peliyagoda and Katunayake to 20 minutes from the earlier time of 1.5
hours using Peliyagoda-Puttalam road (A003).
The quick travel between the Bandaranaike International Airport and the capital of the country with enhanced safety will
surely help to boost the country's economy in addition to providing pleasant travel to the road users.
Why Sri Lanka?
J) Rapidly Developing Infrastructure (contd…)
b) Southern Highway (126km)
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The longest expressway being built in Sri Lanka. The construction of a four-lane highway from Colombo to Matara will be a catalyst for
the economic and social development of the Southern region and promotion of and inter-regional transport network. The highway was
opened for public on 27th November 2011.
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The section of Southern Expressway from Pinnaduwa (Galle) to Godagama (Matara) has been opened to public on 15th March 2014.
This section also consists of 4-lane capacity similar to the earlier section from Kottawa to Pinnaduwa. The maximum operating speed
for this section is also 100 kmph.
Now the Southern Expressway from Kottawa to Godagama (Matara) is in operation. It is expected to extend the Southern Expressway
from Matara to Hambantota with the intention of linking Mattala Airport and Hambantota Harbour to the Commercial Capital, Colombo
in future.
c) Outer Circular Highway - OCH (29.2km)
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The outer Circular Highway (OCH) is located in the Colombo Metropolitan Region and passes through two administrative districts, namely Colombo and
Gampaha.
This highway runs around 20 km away from the City centre of Colombo, connecting radial routes and has a total length of 29.2 km.
The northern end of the highway is located at Kerawalapitiya on Colombo-Katunayake Expressway and the southern end is located at Kottawa on ColomboRatnapura-Wellawaya-Batticaloa (A004) road where Southern Expressway meets OCH.
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Outer Circular highway from Kottwawa to Kerawalapitiya will link seven trunk roads and the Colombo – Katunayake and the Southern Expressways.
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The expressway is implemented in three phases as given below;
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Phase 1: Section from Kottawa to Kaduwela (11km) - Commenced in December 2009. (Phase 1 completed and opened for public in March 2014)
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Phase 2: Section from Kaduwela to Kadawatha (8.9km) - Commenced in 2012.
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Phase 3: Section from Kadawatha to Kerawalapitiya (9.2km)
Why Sri Lanka?
J) Rapidly Developing Infrastructure (contd…)
d) Colombo - Kandy Highway (99km)
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The proposed North – East Expressway (Colombo – Kandy Expressway)
begins at Kadawatha of the present Colombo – Kandy (A1) Road (at the
access point of the Outer Circular Highway) and links with Katugastota–
Kurunegala – Puttalam (A10) road at Hedeniya and Kandy– Jaffna road (A9)
at Katugastota.
The length of this road is 99 km. Construction of the North - East Expressway
is mainly divided into two construction phases viz.
Phase I (Kadawatha–Ambepussa) – 48.2 km and Phase II (Ambepussa–
Katugastota) - 50.7 km.
The expressway is expected to be built as a privately financed toll road and
will be later expanded to Jaffna and Trincomalee.
The cost for the first phase of the road project is estimated to be one billion
US dollars.
Why Sri Lanka?
K) Developed Infrastructural Facilities: Telecommunications
• Most advanced Telecommunication Industry in South Asia
• Sri Lanka is being developed as regional hub for telecommunications
• Fastest growth sector driven by public private partnership
• Development of faster and more efficient technologies
• Fiber Optic Cables with
– SEA-ME-WE III
– SEA-ME-WE IV
(Connectivity Bandwidth - 1.32 terabits per second)
SEA-ME-WE IV fiber
cable network
Telecommunications Technologies
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GSM (Global System for Mobile communication)
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3.75G and 4G services
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HSPA (High Speed Packet Access technology )
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Video conferencing, video streaming, mobile
TV, music streaming and high speed internet
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CDMA
Why Sri Lanka?
K) Developed Infrastructural Facilities: Power
Main Power Sources
• Hydro - 45%
• Thermal - 55%
•Total capacity – 1780 mw
Pipeline Projects
• Trincomalee Coal Fired Plant (500 MW)
• LNG Power & LNG Terminal (600 MW)
New Constructions
• Norochcholai Coal Fired Plant (300 MW - 2011, Additional 600 MW – 2013)
• Upper Kothmale Hydro Power Plant (150 MW - 2012)
Why Sri Lanka?
L) Natural Resources
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Tea, Rubber, Coconut
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Spices
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Gems
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Mineral sands and rare earths such as Mica,
Phosphate, Salt, Silica Sand, Feldspar, Graphite ,
Calcium Carbonates
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Fishing grounds
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Oil and Gas deposits
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Nature Tourism
Sri Lanka’s Total Export Values
Year
Sri Lanka’s Exports
Sri Lanka’s Imports
to Thailand
from Thailand
Total Trade
2006
38
205
243
2007
47
231
278
2008
77
298
375
2009
63
271
334
2010
84
316
400
2011
2012
76
491
567
66
460
526
2013
57
428
485
2014
54
462
516
Value in Millions of US Dollars
Source of data: Dept. of Commerce, Sri Lanka
Production & Exports
A) Garments
• Industry with 3 decades of experience
• 300 export oriented manufacturing plants
• A flagship green manufacturing destination
World 1st LEED Certified plant
Asia’s 1st carbon neutral facility
INTERNATIONAL BRANDS
SRI LANKAN BRANDS
Production & Exports
B) Rubber
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160 million kg of natural rubber produced annually
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130,000 hectares under cultivation
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Products: sheet rubber, sole crepe, latex crepe,
technically specified rubber & centrifuged latex.
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Accounts for 20% of solid tyre market
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Industrial & surgical gloves with gamma irradiation
facilities
Production & Exports
C) Ceylon Tea
• History of over 130 years , accounts for 20% market
share today
• 330 million kg production accounting for 9% share
grows in 200,000 hectares
• Adheres to ISO 3720 quality standard & ensures
cleanest Tea with minimum Residue Limit.
• World’s first ozone friendly Certification Mark - grown
100% ozone-friendly
TEA BRANDS
Production & Exports
D) Spices
•
Pure Ceylon cinnamon – with unique flavor and
aroma
•
85% of world market share
•
Produce a range of spices , pepper cloves,
nutmeg, mace & cardamom
•
Supply high quality essential oils for cosmetics &
pharmaceuticals
Production & Exports
E) Coconut Products
•Single largest supplier of bristle coir fiber
•Environmental friendly production
Products:
•Desiccated coconut - Bakery & Confectionary
•Coconut milk powder, cream & oil
•Coco fibre pith, coco pots & poles for Horticulture
•Coir brushes and brooms
•Coir mats & carpets for flooring & for winter season
•Geo textiles to prevent soil erosion.
Production & Exports
F) Mineral Products
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A rich variety of industrial minerals such as Graphite, Ilmenite,
Rutile, Zircon, Quartz, Feldspar, Clay, Kaolin, Apatite, Silica sand,
Garnet sand, Mica, Calcite and Dolomite.
The Pulmoddai beach sand deposit is the most important non
ferrous mineral reserve in Sri Lanka.
Sri Lankan graphite popular for its high purity
Production & Exports
G) Porcelain & Ceramics
Products:
 Tableware
 Wall & floor tiles
 Ornaments
Strengths
 Highly skilled workforce
 State-of-the-art technology
 In-house R & D facilities
 Abundant supply of raw materials
 Ensure design confidentiality
 International quality standards
BRANDS
E
Production & Exports
H) Boat Building
Yachts, Leisure , Pleasure boats
Passenger, Sports, Rescue, Coast guard and
Petrol boats
Fishing boats
Boat building accessories
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Fishing gear
Propellers
Life jackets
Safety equipments
Services
ICT / BPO Services
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Why Sri Lanka?
Globally Competitive industry
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Clean and Green technology
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Top CIMA student population
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2nd highest pool of UK qualified
Sub sectors
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Banking, financial, insurance, mobile
applications and HRM
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Offshore Accounting & Legal services
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Medical diagnostics & engineering services
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Architectural/Construction services, Quantity
Surveying
Other export services
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Ayurvedic herbal healthcare
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Printing services
Accountants
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Over 300 ICT/BPO/KPO Companies
MNCs Operating in Sri Lanka
Global Brands Served
Leading Global Investments in Sri Lanka
Setting up in Sri Lanka
Project Locations
(for industrial manufacturing and processing businesses):
a) BOI administered Export Processing Zone
b) Industrial Park (with required infrastructure facilities) on long-term lease basis.
Other Locations
a) Purchase a privately owned land on outright purchase or lease basis.
b) Government owned lands* available for long term lease under different
government agencies.
*Acquisition of government lands involve a comparatively longer process and
valuation is based on current market price.
Department
Investment
Promotion
Project Appraisal
Project
Implementation
Contact Designation
Executive Director
(Investment Promotion)
Director
(Investment Promotion)
Director
(Business Intelligence Unit)
Director
(Services and Utilities)
Director
(Manufacturing)
Senior Deputy Director
(Tourism, Knowledge Services
& Agriculture)
Senior Deputy Director
(Apparel)
Senior Deputy
Director(Infrastructure)
(Project Implementation)
Executive Director
(Project Implementation)
Senior Deputy Director
(Project Implementation)
Monitoring Executive Director
(Project Monitoring)
Director
(Project Monitoring)
Contact Officer
Mrs. Renuka Weerakone
Tel: +94 112427003 renukaw@boi.lk
Mrs. Nilupul De Silva
Tel: +94 112427042 nilupuls@boi.lk
Mr. Vidharshan Fernando
Tel: +94 112427050 vidharshanf@boi.lk
Mr. Nelson Kumaratunga
Tel: +94112427093 nelsonk@boi.lk
Mr. Udaya Wijayakulathilaka
Tel: +94 112427093 wijew@boi.lk
Mr. Gamini Jayathilaka
Tel: +94 112427090 gaminij@boi.lk
Mr. H Senevirathna
Tel: +94 112427094 senavib@boi.lk
Mr. Ranjan Sibera
Tel: +94 112427086 ranjans@boi.lk
Mr. Duminda Ariyasinghe Tel: +94
112427032 dumindaa@boi.lk
Mr. Duminda Ariyasinghe
Tel: +94 112427032 dumindaa@boi.lk
Mr. Ajith Wijeweera
Tel: +94 112427399 ajithw@boi.lk
Mr. Shivan De Silva
Tel: +94 112427203 shivan@boi.lk
Mrs. Chandrani Samarakoon
Tel: +94 112427345 samarakoonc@boi.lk
Location
Level 26
Level 26
Level 26
Level 24
Level 24
Level 24
Level 24
Level 24
Level 26
Level 26
Level 26
Level 26
Level 26
Thank you