SRI LANKA Investment Guide 2018
Board of Investment of Sri Lanka
SRI LANKA : Investment Guide to Sri Lanka 2018
Preface
This brochure provides an insight for prospec ve investors exploring available investment opportuni es or expand their investment por olio in Sri Lanka. It contains informa on needed for first me investors and also provides direc on to the right people for further assistance.
The Government is commi ed in facilita ng, protec ng and promo ng a liberal investment climate in Sri Lanka by con nuing to re-align their systems and procedures to suit the modern business needs and the prospec ve investors are encouraged to take advantage of these untapped investment opportuni es in the island.
First me investors may contact the Board of Investment of Sri Lanka (BOI) to seek further informa on on the investment climate in Sri Lanka. The BOI is always eager and ready to provide advice on ma ers rela ng to doing business in Sri Lanka.
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SRI LANKA Profit from South Asia’s Most Dynamic Investment Des na on
Sri Lanka is the most compe ve business center in the South Asian Region and there are compelling good reasons for investors to locate their business en es in Sri Lanka. As an island na on that radiates beyond its size, Sri Lanka is renowned for its strategic loca on, scenic beauty and harmonious blend of races and cultures. The strong macroeconomic environment and suppor ve government policies, poli cal stability, close links with foreign markets, excellent educa on and healthcare systems, outstanding infrastructure and mineral resource endowments are few important factors that investors consider when making a decision to invest in Sri Lanka.
With the rela vely robust economic growth in last three decades, Sri Lanka has transited to lower-middle income country and maintains a stable posi on compared to the peer countries in the region.
Sri Lanka has preferen al market access under the Indo-Lanka FTA and Pakistan-Sri Lanka FTA which allows 100% duty free access for more than 4,200 products for both countries. Further, recently signed Singapore-Sri Lanka FTA will provide more opportuni es for investments while regaining EU GSP Plus allows duty free access to the EU Market for over 6,000 products.
Ongoing nego a ons with China and India for comprehensive agreements will provide more opportuni es in the near future.
Moreover, Sri Lanka has an admirable quality of life indicated by the standard health care facili es, world-class educa on system, pres gious hotels/leisure facili es, modern office complexes, luxury residen al apartments and banking facili es in the country.
According to the Sri Lanka government's policy framework “Vision 2025”, which was launched in 2017 to strengthen democracy and reconcilia on, inclusive and equitable growth while ensuring good governance in the country, it is expected to posi on the country as an export-oriented economic hub at the Centre of the Indian Ocean.
“The Vision 2025 Sri Lanka” aims to raise per capita income to USD 5,000 per year, create one million new jobs, increase FDI to USD 5 billion per year, and double exports to USD 20 billion per year. These intermediate targets lay the founda on for Sri Lanka to become an upper-middle income country by 2025. SRI LANKA : Investment Guide to Sri Lanka 2018
Why Invest in Sri Lanka?
1. Strong Economic Growth
2. Unparalleled Strategic Loca on
3. Improved Investment Environment
4. Educated & Adap ve Workforce
5. Fast Developing Infrastructure
6. Access to Key Markets
7. Quality of Life
8. Natural Resources Endowment
9. Advanced Facilita on
10. Incen ves
11. Investment Poten al in Sri Lanka
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1. Strong Economic Growth
Na onal Output (2017) GDP Distribu on (2017) GDP (Current Market Price) : USD 87.2 bn Agriculture : 6.9% Industry : 26.8% Per Capita GDP : USD 4,065 Services : 56.8% Real GDP Growth : 3.1% Taxes Less Subsidies on Products : 9.5% Demography Labour Force : 8.2 Mn Unemployment Rate (% of Labour Force) : 4.2 Popula on : 21.4 Mn
Agriculture Taxes Less External Trade 6.9% Industry Subsidies on Exports : USD 11,360 Mn 26.8% Imports : USD 20,980 Mn Products 9.5% Trade Balance : USD (9,619) Mn Infla on CCPI Annual Average : 6.6 % Services External Finance 56.8% FDI : USD 1.7 bn (2017) FDI % of GDP : 2% (2017)
Source : Central Bank of Sri Lanka & Board of Investment of Sri Lanka
Key Trade Partners of Sri Lanka
Sri Lanka's Top 10 Export Des na ons - 2017 Sri Lanka's Imports by Country (Top Ten) - 2017 (USD Mn.) (USD Mn.)
United States 2,911 India 4,498 United Kingdom 1,035 China 4,193 India 689 Singapore 1,293 Germany 538 Japan 1,039 Italy 529 USA 813 China 415 Malaysia 642 Belgium 347 Thailand 519 UAE 274 Taiwan 482 Turkey 233 Hong Kong 439 Netherlands 220 Saudi Arabia 39 500 1,000 1,500 2,000 2,500 3,000 1,000 2,000 3,000 4,000 5,000 Source : Export Development Board Sri Lanka Source : Sri Lanka Customs SRI LANKA : Investment Guide to Sri Lanka 2018
Major Exports and Imports
Sri Lanka's Exports by Product in 2017 (Top 15) Sri Lanka's Imports by Product in 2017 (Top 10)
Apparel 4,739 Tea 1,512 Petroleum Products 3218 Rubber & Rubber products 873 Textiles 2663 Coconut & Coconut based products 563 Food, Feed, Beverages & Tobacco 390 Machinery & Equipment 1678 Electrical, Electronic and Machinery 372 Vehicles & Equipment 1499 Spices 353 Electronic & Electrical 1383 Petroleum Products 292 Boat Building 279 Iron & Steel Products 1234 Textiles 277 Diamond & Precious Stones 773 Diamonds, Gems & Jewellery 266 Plastic Products 724 Fish 256 Chemical & Plastic Products 140 Cement 526 Base Metal Products 116 Pharmaceulticals 435 Non Metallic Mineral Products 110 500 1,000 1,500 2,000 2,500 3,000 3,500 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 USD Mn. USD Mn. Source : Sri Lanka Customs Source : Sri Lanka Customs
Foreign Direct Investments
FDI Inflow (2005-2017) FDI by Country (Cumula ve FDI 2005–2017)-Top 25
China 1,738 Malaysia 1,540 1800 1,710 Hong Kong 1,441 1,616 India 1,164 1600 U.K. 1,067 Netherlands 850 1,391 Singapore 665 1400 1,338 Mauritius 610 UAE 593 1200 USA 444 1,066 Japan 331 970 Luxemburg 326 1000 889 Sweden 227 801 Australia 190 800 734 Canada 159 British Virgin Island 145 600 604 602 Belgium 124 516 Germany 102 Italy 82 400 Switzerland 81 287 Korea 65 Thailand 65 200 France 38 Norway 37 Saudi Arabia 33 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 200 400 600 800 1000 1200 1400 1600 1800 USD Mn. USD Mn.
FDI Received (Cumula ve) from 2005-2017 Sector wise Breakdown IT and BPO 2%
Hotels & Restaurants Other 9% 9% Manufacturing 26% Port Development 7% Agriculture Fuel, Gas, Petrolium 0% 2% Housing, Property Telephone & Development and Power Genera on Telecommunication Shopping & Office 4% Network complexes 27% 14% Source : Board of Investment of Sri Lanka
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2. Unparalleled Strategic Loca on
Sri Lanka is situated strategically at the crossroads of major shipping routes to South Asia, the Far East and the con nents of Europe and America, making the country a convenient port of call for shipping lines and airfreight services. Further, Sri Lanka's proximity to the Indian sub-con nent posi ons the country as a gateway to a market of 1.3 billion people. These factors have combined to generate keen interest in the country's logis cs sector, as well as from manufacturers looking for opportuni es in the South Asian region. SRI LANKA : Investment Guide to Sri Lanka 2018
3. Improved Investment Environment
Investment Policy Sri Lanka's Investment policy is geared towards the realiza on of na onal sustainable development goals and grounded in the country's overall development strategy. Investment policy priori es are based on a thorough analysis of the country's compara ve advantages and development challenges and opportuni es. Its strategic priori es, include:
- Investment in specific economic ac vi es, e.g. as an integral part of an industrial development strategy. - Areas for mutual reinforcement of public and private investment (including a framework for public-private partnerships). - Investment that makes a significant development contribu on by crea ng decent work opportuni es, enhancing sustainability, and/or by expanding and qualita vely improving produc ve capacity and interna onal compe veness.
In this context, the key legisla ons facilita ng investments in Sri Lanka are;
The Board of Investment Law No. 4 of 1978 and its amendments is the principal law applicable to investments in Sri Lanka. This law established the na onal investment promo on agency, the Board of Investment of Sri Lanka, which is structured to func on as the 'Central Facilita on point' for investors and empowered to enter into agreements with investors providing incen ves to a ract investments. Board of Investment Law No. 4 of 1978
This legisla on was introduced to promote Sri Lanka as an emerging trading hub and facilitates related specific trading and services ac vi es. Free Ports and Bonded Areas have been set up to create trade related infrastructure to facilitate Sri Lanka's import and export of goods and services with freedom to carry out transac ons in conver ble foreign currency. Finance ACT No. 12 of 2012 (Hub opera ons) as amended in 2013
This legisla on has simplified the taxa on law in Sri Lanka while introducing new incen ve regime for investors. While maintaining the standard corporate income tax rate at 28%, this law provides for a reduced rate of 14% for specific sectors such as SMEs, Exports of Goods and Services, IT, Educa on, Tourism and Agriculture. Enhanced Investment allowance has been offered to investors for their fixed Inland Revenue capital investment over and above the normal deprecia on. Act No.24 of 2017
The above Foreign Exchange Act repeals the Exchange Control Act (Chapter 423) while introducing a liberal exchange regime for Sri Lanka. Foreign exchange controls have been greatly liberalized and investors are allowed to directly deal with the banks for their transac ons unless Central Bank approval is specifically needed. Free flow of transfers are allowed through Inward Investment Accounts and Foreign Exchange through Outward Investment Accounts. Act No.12 of 2017 Land Policy
The foreign investors are eligible to lease lands in Sri Lanka to establish their projects. A new land law was promulgated in 2014 which permi ed lease of land for foreign investments and outright transfers will only be permi ed when the foreign shareholding is less than 50%. The land lease period is subject to Land (Restric on a maximum tenure of 99 years. Foreign investors are not liable to pay any lease tax when leasing a land. on Aliena on) However condominium proper es can be purchased outright with no restric ons on na onality. Act No.38 of 2014 (Please refer Appendix I for detailed informa on.) 7 SRI LANKA : Investment Guide to Sri Lanka 2018
Bilateral Investment Promo on and Protec on Trea es
Sri Lanka has entered into 28 Bilateral Investment Promo on and Protec on Trea es (BITs) so far, providing a protec on to foreign investments within the country. Sri Lanka is developing its model BIT with a view to cater to the needs of covering the aspects of sustainable development principles in a rac ng foreign investments.
Australia France Korea, Republic of Singapore Belgium-Luxembourg Germany Kuwait Sweden China India Malaysia Switzerland Czech Republic Indonesia Netherlands Thailand Denmark Iran, Islamic Republic of Norway United Kingdom Egypt Italy Pakistan USA Finland Japan Romania Vietnam
Agreements on Avoidance of Double Taxa on
Sri Lanka has entered into Double Taxa on Avoidance Agreements with 44 countries to eliminate or mi gate the incidence of juridical double taxa on and avoidance of fiscal evasion in the interna onal trade (or transac ons).
Australia Germany Mauri us Russia Bangladesh Hong Kong Nepal Saudi Arabia Bahrain India Netherlands Seychelles Belarus Indonesia Norway Singapore Belgium Iran Oman Sweden Canada Italy Pakistan Switzerland China Japan Pales ne Thailand Czech Republic Republic of Korea Philippines U.A.E. Denmark Kuwait Poland United Kingdom Finland Luxembourg Qatar USA France Malaysia Romania Vietnam
SRI LANKA : Investment Guide to Sri Lanka 2018
4. Educated and Adap ve Workforce
Skilled workforce is a key indicator in the labour market, which is very important for the economy of Sri Lanka with its massive development plans. Labour is the most abundant factor in Sri Lanka in comparison to other factors of produc on such as land, capital, entrepreneurship, technology and informa on. Labour force has increased by 1.2 per cent during 2016 to 8.311 million, from 8.214 million in 2015.
The SAARC region - is among the areas demarcated as having the highest illiteracy rates and Sri Lanka is the second highest next to the Maldives. The country's popula on has a literacy rate of 92% with a youth literacy rate of 97%. Schooling is compulsory for children from 5 to 13 years of age with state funded educa on offered free of charge at all levels, including the university level. The government gives high priority to improving the na onal educa on system and access to educa on including voca onal training.
Sri Lanka has always priori sed employment for youths, placing them at the heart of development. Youth skills development has been iden fied as an important aspect in reducing youth unemployment.
Various voca onal training programs have been introduced by the government to cater to the future demand in emerging sectors including Light Engineering and Automo ve manufacturing, Construc on, Hospitality and Tourism and Informa on Communica on and Technology. With easily trainable nature of Sri Lankan youth, upgrading their skills to match the demand for skills required by fast growing industries in the country is an easy task.
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5. Fast DevelopingAustralia Infrastructure
Sri Lanka enjoys extensive infrastructure facili es which has Telecom received much government a en on. The Sri Lankan Government Sri Lanka's telecoms market is matured compared to neighbouring has priori zed infrastructure development as a na onal priority countries. A good start has been made on expansion and provision considering its importance in a rac ng and facilita ng foreign of suppor ng infrastructure for telecommunica ons services. As at direct investments. end of 2017, cellular mobile subscrip on in Sri Lanka recorded at 28.2 mn, while fixed access telephone subscrip on stood at 2.5 mn. Roads Sri Lanka's mobile market has experienced strong growth over the Sri Lanka has a well-developed transport system, including a road last five years. Mobile penetra on has risen from 96% in 2012 to network of approximately 100,000 km and a rail network consis ng 126% in 2017. The last three years in par cular have seen very of about 1,944 km linking Colombo with the rest of the country. strong growth led by the market leader Dialog Axiata. Slow to Major highway development projects namely Katunayake Express moderate growth is predicted over the next five years to 2022. The Way and Southern Express Way have already been completed and market will be constrained from higher growth due to very strong the construc on works are con nuing in the Southern Express Way local compe on and a saturated mobile market. Extension project, Outer Circular Highway and the Central express way; that enhance the connec vity between Western, Southern, Sri Lanka has seen a very strong increase in mobile broadband North Central and Central Provinces. In addi on, Northern Road penetra on over the past five years with market penetra on Connec vity Project and several bridge construc on projects are increasing from 8% in 2012 to 21% in 2017, driven by a rising level of ongoing improving the connec vity throughout the island. mobile subscribers.
Ports Ongoing growth in the telecoms market is likely to be spearheaded Sri Lanka is located at the intersec on of major interna onal by data services (from both mobile and fixed sources). Demand for shipping routes within the world's busiest mari me transporta on broadband data services driven by 4G adop on and increased lanes. Due to this loca onal advantage, Sri Lankan ports have smartphone penetra on should drive reasonably strong growth in become very important assets which contribute immensely to the the local market over the next few years. The market is now moving development of the country. The developing port infrastructure in from 4G towards 5G mobile services. Dialog Axiata carried out a 5G' main three ports; Colombo, Hambantota and the Trincomalee, is network capability trial with technology partners Ericsson and con nuing considering much higher economic benefits it would Huawei in Colombo. bring to the country. The availability of e-commerce applica ons including mobile Airports banking, e-bus cke ng, and mobile points of sale (POS) con nues to increase. Bandaranaike Interna onal Airport is the main interna onal airport in Sri Lanka located 30 KM North of the island na on’s capital of Colombo and the Ma ala Rajapaksha Interna onal Airport is the Key developments in the sector includes; second interna onal airport, placed in the deep south of the - The market movement from 4G towards 5G mobile services. country. - A strong increase in mobile broadband penetra on over the past five years. - Con nuous increase in e-commerce applica ons. SRI LANKA : Investment Guide to Sri Lanka 2018
Export Processing Zones already opera ng and proposed under BOI Services provided by BOI in zones
- Approval and facilita on for Export / Import Documenta on & Recommenda on of the expatriate visa - Engineering approvals such as building plans, site clearance, issuance of cer ficate of conformity & Existing Zones provision of dedicated infrastructure facili es such as New Zones centralized water and sewerage treatment facili es - 24 x 7 Cargo Verifica on Mawathagama-Phase II - Advisory service & guidance on industrial rela ons - 24 x 7 fire service with firefigh ng, monitoring & Mawathagama EPZ advisory services - 24 x 7 overall security coverage - Environment monitoring, advisory & laboratory Polgahawela EPZ services Kandy IP - Day care centers, Sport and recrea on facili es , leisure parks Bingiriya - Internal transport facili es, bus terminals Malwatta EPP Mirigama EPZ - Centralized solid waste handling mechanism - Provision of lands for prospec ve projects Katunayake EPZ
Wathupitiwela EPZ Biyagama EPZ Services provided by Available commercial Horana EPZ other State Agencies facili es
Wagawatta IZ - Free healthcare facili es - Commercial Banks for workers - Industrial Waste Handling & Milleniya - Medita on & Counseling Disposal Facility Centers - Freight Forwarding & Container Yard Seethawaka EPZ Mirijjawila EPZ - Sri Lanka Customs services - Postal Services Koggala EPZ - Ambulance service - Insurance - Cab and transport facili es BOI Zone Details Distance to Distance to Distance to Total Land Enterprises in Katunayake Port of Hambantota Extent Commercial Intl. Airport Colomb0 Port (Acres) Opera on (as at (Km) (Km) (Km) 31/12/2017) (a) Katunayake EPZ 3 33 232 532 84 (b) Biyagama EPZ 39 22 208 451 57 (c) Koggala EPZ 160 139 122 227 22 (d) Kandy IP 116 130 248 205 24 (e) Wathupi wala EPZ 30 41 203 123 18 (f) Mirigama EPZ 37 66 220 261 09 (g) Malwa a EPP 26 37 207 33 06 (h) Mawathagama EPZ 85 106 249 54 05 (i) Polgahawela EPZ 65 91 229 65 05 (j) Horana EPZ 78 59 221 396 20 Wagawa a IP 78 59 221 76 7 Wagawa a IZ 78 59 221 223 - (k) Mirijjawila IP 218 221 14 588 05 (l) Seethawaka EPZ 57 49 177 431 26 EPZ - Export processing Zone, IP - Industrial Park, IZ - Industrial Zone BOI Zone Management Department focuses on providing central facilita on to investors to operate industries in a conducive environment without interference and outside disturbances. The BOI Zone model has been implemented to obtain all enterprises related services efficiently and effec vely from a one place, without going to any other place facilita ng industries to operate smoothly. As such, the following facili es have been established in a zone to maintain an investor friendly atmosphere. 11 SRI LANKA : Investment Guide to Sri Lanka 2018
6. Access to Key Markets
India - Sri Lanka Free Trade Pakistan - Sri Lanka Agreement (ISFTA) Free Trade Agreement (PSFTA)
The Indo-Sri Lanka Free Trade Agreement (ISFTA), which was Sri Lanka's second Free Trade Agreement (FTA) between Pakistan signed on 28 December 1998 and entered into force with effect and Sri Lanka was finalized and was commenced on 12th June 2005. from 1 March 2000. Since March 2009 Sri Lanka has duty free market access for more than 4,500 products. Sri Lanka has also completed all her phasing Since the end of March 2003, Sri Lanka has received total duty out commitments in November 2010. free access to the vast Indian market under the ISFTA for more than 4,200 products (HS Codes at 6 digit level). Classifica on of Duty Concessions Schedules Classifica on of Duty Concessions Schedules under under Indo - Lanka FTA Pakistan - Sri Lanka FTA
Type of Duty Reduc on Sri Lanka's India's Type of Duty Reduc on Sri Lanka's India's Commitment* Commitment* Commitment* Commitment* Nega ve List (No Concession List) 1,220 198 Nega ve List (No Concession List) 695 498 Tariff Rate Quota (TRQ) Tariff Rate Quota (TRQ) Tea - 5 Basma Rice and Potato 2 - Garments - 235 Garments - 21 Vanaspathi, Bakery Shortening, - 5 Tea - 04 Margarine and Pepper Margin of Preference (MOP) Margin of Preference (MOP) Ceramics - 05 Tex les - 553 Cosme cs - 11 100% Duty Free List (Zero Duty List) 4,004 4,228 Betel Leaves - 01 Total 5,224 5,224 100% Duty Free List (Zero Duty List) 4,527 4,684 Total 5,224 5,224 * No. of items at six digit level * No. of items at six digit level Rules of Origin (ROO) Rules of Origin (ROO) Ÿ 35% Domes c Value Addi on (DVA) (25% DVA if raw materials Ÿ are imported from partner country) 35% Domes c Value Addi on (DVA) (25% DVA if raw materials Ÿ Change of Tariff Heading criteria at 4-digit level and are imported from partner country) Ÿ Ÿ A sufficient process Change of Tariff Heading criteria at 6-digit level and Ÿ A sufficient process The focal point and the authority for issuing Indo - Lanka FTA Cer ficates of Origin is the Department of Commerce, Sri Lanka and The focal point and the authority for issuing Pakistan - Sri Lanka FTA Federa on of Chamber of Commerce. Cer ficates of Origin is the Department of Commerce in Sri Lanka.
Sri Lanka - Singapore FTA Entering into Trade and Comprehensive Partnerships Agreements
The Free Trade Agreement (FTA) between Sri Lanka and Singapore Sri Lanka's strategic loca on provides great opportuni es to enter was signed on 23rd January 2018. The Sri Lanka-Singapore FTA into free trade and partnership agreements with several of Asia's (SLSFTA) is a landmark agreement as it is the first comprehensive trade powerhouses. Sri Lanka is pursuing a more proac ve free agreement for Sri Lanka that includes investments and services trade agreement (FTA) strategy and FTA nego a ons are ongoing beyond trade in goods. The Singapore-Sri Lanka FTA is part of a with China while nego a ons are ongoing to establish a deeper broader strategy of looking “East” to renew the country's trade economic arrangement with India to supplement the near two rela onships in the process of diversifying its markets towards Asia decade old FTA. and focus on plugging into ASEAN supply chains. It is expected that the protec on to be given under SLSFTA to investors and to their investments will result in substan al increase in FDI u lizing the provisions of this agreement. SRI LANKA : Investment Guide to Sri Lanka 2018
7. Quality of Life
Sri Lanka is truly a great place to live and a great place to work. A country of many facets, if offers a spectrum of experiences, people and places that awaits to be discovered. For those who choose to make Colombo their home, a cosmopolitan living environment awaits. Social life is never amiss in this city, with abundant nightlife, world-class shopping, theatre, cafes, art and a host of star class hotels that dot the island.
The expatriates and their families will enjoy a quality living environment in Sri Lanka with comfortable housing, good healthcare and medical facili es, excellent educa onal ins tu ons with interna onal standards, and world-class recrea onal sites.
Leading Interna onal Schools that provides quality educa on for the children of expatriates includes; Asian Interna onal School, Bri sh School in Colombo, Colombo Interna onal School and Colombo Overseas School.
There is a wide selec on of comfortable housing in Sri Lanka including luxury condominium apartments ideal for expatriates. Interna onally recognized ins tu ons of Healthcare market have chosen Sri Lanka as a des na on for health tourism. A dozen of private and public hospitals with state-of the-art medical facili es are opera ng in Colombo and in all other main ci es. It offers revolu onized private hospitaliza on and healthcare facili es and is ranked 76 posi on out of 190 countries in WHO's World's Health Systems Ranking in 2016. A pre-hospital care ambulance service; 1990 Suwasariya Ambulance Service, is also available covering the Western and Southern Provinces free of charge.
Seven UNESCO World Heritage sites, a salubrious climate in the central hill country, 250 acres of botanical gardens, 15 Wildlife and Nature reserves and miles of pris ne beach, are concentrated within a mere 645,610 square kilometers. Sri Lanka is renowned for its varied biodiversity fauna and flora.
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8. Natural Resources Endowment
Sri Lanka is well-endowed with industrial minerals including Graphite, Ilmenite, Ru le, Zircon, Quartz, Feldspar, Clay, Kaolin, Apa te (Phosphate Rock), Silica Sand, Garnet sand, Mica, Calcite and Dolomite.
Pulmoddai beach sand deposit is the most important non-ferrous mineral reserve in Sri Lanka. This deposit contains minerals including one of the most expensive and sought a er metals in the world: tanium.
Ilmenite (FeTiO₂) and ru le (TiO₂) are found in enormous concentra ons in the Pulmoddai beach sand deposit area. Several other beach mineral-sand deposits of Monazite, Zircon, Garnet and Ilmenite are found in various parts of the island and are now being exported.
The use of graphite in Sri Lanka has a long history that dates back to 1675. Sri Lankan graphite has gained popularity all over the world for its high purity and offers many processing applica ons in graphite lubricants, flake graphite, carbon brushes, refractory bricks and midget electrodes and nano-technology.
Ilmenite Graphite
Ÿ The Total Reserves (Ilmenite) : 4.3 Million Tons Ÿ The only country in the world where crystalline Ÿ The Pulmoddai Deposit : graphite or lump (vein) graphite is available. - Six kilometers in length with an average width of Ÿ Benchmark Graphite Purity within the Industry 100 meters (Carbon range) - Es mated to contain six million tons of heavy Ÿ Global: 94% - 97% sands with an average composi on of 70-72 % Ÿ Sri Lanka: 97% - 99.9% ilmenite, 8-10 % zircon, 8 % ru le and 0.3 % Ÿ The total reserve: 5 Mn. tons monazite Ÿ Major graphite deposits : Bogala & Kahatagaha - Ilmenite (FeTiO2) and ru le (TiO2) found in Ÿ The largest graphite mine is Kahatagaha enormous concentra ons Kolongaha (K/K), situated 27 km north east of - Experiments have shown that TiO2 concentra on of ilmenite is about 53% while that of ru le is about 95%
Three main types of clay - kaolinite, ball clay and brick clay are used for export industries. Yellow, red and blue colour ball clay is found in Sri Lanka's hill country. These are used to make casts and as refractory material because of their a ributes of strength and high plas city. Brick clay is found in most of the river valleys and is commonly used in the produc on of bricks and les.
Quartz, ball clay, silica and feldspar are u lized in the ceramics and glass industries with great success; the country’s porcelain is ranked among the best in the world.
Sri Lanka's natural resources include another valuable economic mineral reserve known as apa te rock phosphate. It is es mated that the reserve consists of 60 million tons of apa te which is generally used to produce phosphate fer lizer. SRI LANKA : Investment Guide to Sri Lanka 2018
9. Advanced Facilita on
High Powered Commi ees to Facilitate Investment Approvals
The BOI has in place several ini a ves to reduce the me taken for approval processes and to resolve investor issues in efficiently, thereby assis ng investors to navigate the necessary administra ve processes in the shortest possible me. These consist of several high level commi ee which meet at regular intervals to accommodate investor needs, with the sole purpose of expedi ng projects.
The Project Screening Commi ee (PSC):
This commi ee which consists of cross func onal representa on of the BOI immediately screens all investment applica ons jointly across all relevant departments to grant approval in an expedi ous manner.
Single Window Investment Approval Commi ee (SWIAC):
Any projects which needs further clearance on opera onal issues will be referred to this higher level commi ee which is chaired by a Senior Advisor to the Hon. Prime Minister.
Investment Approval Facilita on Commi ee (IAFC):
Ma ers requiring policy level interven on are referred to this commi ee chaired by the Secretary to the Treasury, for speedy resolu on.
Single Window Investment Facilita on Task Force (SWIFT)
Being the investment facilitator, BOI has taken an ini a ve to improve service delivery by introducing SWIFT which will act as a facilita on arm of investment approvals process and will provide necessary linkages to the relevant line agencies in order to expedite the project approving process through a func on based virtual pla orm. SWIFT will improve the investor awareness regarding the compliances and will guide the investor throughout the approval process.
Once the project is preliminary approved by the Single Window Investment Approval Commi ee (SWIAC) and BOI, applica on will be referred to SWIFT to commence the facilita on process with regard to the line agency approvals. Any issue in respect of the project will be referred to the Investment Approval Facilita on Commi ee (IAFC) for a solu on.
Under this30 ini a ve, it has improved the informa on transparency of regulatory processes and process simplifica on of the line agencies. Twenty-four of the most important line agencies are linked under one pla orm with this mechanism and have agreed to follow a phased approach as a strategy to achieve the outcome.
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Registering your company
The Department of the Registrar of Companies (DROC) enables investors to establish business and other ins tu ons under the relevant acts in accordance with the economic and trade policies of the government of Sri Lanka. In the case of a BOI enterprise it must be incorporated under the Companies Act No. 7, of 2007 as a joint venture or a sole ownership. Sri Lanka has no restric ons on 100% foreign ownership of a registered company.
Companies The DROC offers a web based single window aimed at reducing delays through a one day service. This web portal allows a prospec ve investors to both ini ate the registra on of their company as well as to view the status of registra on from anywhere in the world. A foreign investor can their for register their company in Sri Lanka while based in their home country.
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Visa Facilita on
Being the Investment Promo ng Agency of the country, the Board of Investment (BOI) Visa category / Project type & plays a vital role in facilita ng the companies to enhance the smooth opera on of Validity period doing business in Sri Lanka. As such, BOI recommends the visas for investors and skilled workers under iden fied categories to the issuing authori es, the Department of Entry Visa Immigra on and Emigra on under Ministry of Internal Affairs, Wayamba Development and Cultural Affairs. 01 month from the date of arrival
The BOI recommends different type of visas for Investors, dependents, and expatriate workers of BOI approved projects under sec. 17 & sec. 16 of the BOI Law. Residence Visa
Type of visa recommenda on 01 year from the date of arrival
- Entry Visa / Mul ple Entry Business Visa - Residence Visa / Special Residence Visa Extension of Residence Visa - Extension of Residence Visa - Temporary Visa (maximum 03 months only) 02 years for (Sec.17 Projects) 01 year for (Sec.16 Projects) Investors and expatriate employees should arrive in Sri Lanka using Entry Visa or business visa and within one month from the date of arrival Entry Visa to be converted to Residence Visa with the recommenda on of the BOI. Temporary Visa
If the applicant leaves from the country within the Entry Visa period (One month), no Installa on work – expatriates only provisions are available to convert the same Entry Visa to Residence Visa, unless a fresh Entry Visa applica on is submi ed. Special Residence Visa Temporary Visa will be recommended for contracted technical workers (expatriates) for a period of 3 months for specific assignments a er evalua on of such ac vi es. 01 year (Investor on Electronic Travel Authoriza on – ETA Visa) (e.g. Sri Lankan / Child Born in Sri Lanka) SRI LANKA : Investment Guide to Sri Lanka 2018
Import/export facilita on
The Board of Investment of Sri Lanka, structured to func on as the central facilita on point for investors, is also responsible for permi ng imports and exports of projects under sec on 17 of the BOI Law as well as providing other investor related services. These facili es are provided by the Investor Services Department of the BOI.
Services Offered by the Investor Services Department Customs Declara on (CusDec)
Processing and Approving Import / Export Documents, Request for clearance of Import cargo has to be made Examina on of Import / Export Cargo, Issue of on the form iden fied as CusDec (Customs Cer ficates of Origin for Apparel and Tex le products, Declara on/Customs form 53). This form is designed Approval for Subcontracts, Transfers, Loans of raw as CusDec I, which is, used when only one item is material, Re-Import and Re-Export of Items, declared and CusDec II, if there is more than one item Recommenda ons to the Controller General of to be declared. For new investors, it is recommended Immigra on & Emigra on for issue of expatriate visas, to obtain the services of a clearing agent registered Indirect Export Web Sub-mission, Other Investor with the Associa on of Clearing and Forwarding Agents related approvals. (ACFA) and who is familiar with BOI Import/Export procedures which would avoid delays in clearing cargo and payment of demurrages.
Investor Service Centres Procedure for Clearance of Import Cargo
To provide the above-men oned services, the BOI has An Investor who has signed an agreement under Investor Service Centres located at; sec on 17 of the BOI Law, is eligible to import project Colombo Head Office, Katunayake, Biyagama, related items approved by the Investment Koggala Export Processing Zones and Kandy Department without Customs Import Duty (CID). Industrial Park. However, the investor is required to pay other taxes liable under the customs tariff. A er signing the agreement with the BOI, to obtain the relevant services from one of the above Centres, the investor should first register with the respec ve Investor Service Centre.
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Industrial Labour Rela ons Labour laws of the country are applicable to all enterprises, including The BOI is also commi ed to promote the applica on of the principles BOI enterprises, and the Ministry and the Department of Labour are undertaking the Global Compact and related Interna onal Labour responsible for labour administra on func ons, including labour law Standards by the employers in the BOI enterprises, both within and enforcement and Industrial Rela ons. outside Export Processing Zones. Accordingly, Labour Standards and The Board of Investment of Sri Lanka promotes and facilitates labour Employment Rela ons in the BOI enterprises will be governed, inter management co-opera on and industrial harmony in the enterprises alia, by the following policies and principles; coming under its purview and towards that end, provides advisory Ÿ Respec ng the right of the workers to form and join trade unions of services and guidance to employers and employees through its their own choosing. Industrial Rela ons Department. Officers from this department will Ÿ Respec ng the right of the workers to bargain collec vely through offer advisory services and guidance to employers and employees on all their trade unions, or in the absence of a trade union, through aspects in the area of industrial rela ons. Enterprises should bring to other organiza on or body consis ng of their elected the no ce of the department any apprehended or exis ng disputes or representa ves in the workplace. problems faced by them in this area so that they could be a ended to promptly with a view to speedy se lement by the appropriate Ÿ Affording protec on to workers' representa ves and trade union authori es. officers against any act prejudicial to them, including dismissal based on their status or ac vi es as workers' representa ves. The Labour Standards and Employment Rela ons Manual issued by BOI lays down good Industrial Rela ons principles and prac ces and sets Ÿ Elimina ng forced or compulsory labour. out the basic terms and condi ons of employment to be observed by Ÿ Abolishing child labour. BOI enterprises opera ng both within and outside the Export Processing Zones of Sri Lanka. Ÿ Elimina ng discrimina on in employment, occupa on and remunera on against workers on such grounds as race, sex, All BOI enterprises are expected to observe the Industrial Rela ons religion, poli cal opinion. principles and prac ces laid down in the Labour Standards and Employment Rela ons Manual, the provisions of the relevant labour Ÿ Ensuring stability in employment. laws and terms and condi ons of employment no less favourable than Ÿ Providing safe and hygienic working condi ons. the basic standards set out in this Manual. They are also required to maintain a healthy and harmonious industrial labour rela ons climate Ÿ Establishing appropriate machinery for consulta on and co- conducive for higher efficiency and produc vity. opera on between elected representa ves of workers and employers on ma ers of mutual concern. Ÿ Establishing grievance procedures for the examina on of workers' Services provided by the Industrial Rela ons Department grievance. Ÿ Offering fair wages and benefits and condi ons of employment to 1) Provide Advisory Services workers. Ÿ Distribu on of Labour Standard & Employment Rela ons Ÿ Elimina ng harsh and inhuman treatment of workers. Manual. Ÿ Elimina ng excessive working hours and over me work. Ÿ Issuance of clarifica ons / opinions on IR related ma ers. Ÿ Affording appropriate facili es to workers' in the undertaking to Ÿ Organizing discussion / mee ng / workshops for sharing carry out their func ons promptly and efficiently. the knowledge. Ÿ Formula ng effec ve communica on policy within the workplace to promote rapid dissemina on and exchange of informa on rela ng to various aspects of the undertaking and to the social 2) Monitor the Compliance of Labour Standards by BOI Enterprises condi ons of the workers. Ÿ Conduc ng rou ne Labour inspec on. Ÿ Providing advisory services on labour and industrial rela ons Ÿ Verifying the project status prior to gran ng special ma ers to employers and employees and promo ng and facilitates. e.g: Visas for expatriates, green channel facility facilita ng effec ve preven on and se lement of Industrial etc. Disputes. Ÿ Sharing informa on with liaison authori es. Ÿ Inves ga on into complaint / grievances of employees.
3) Promote Social Dialogue Ÿ Facilitate to form and operate the Employees' Councils. Ÿ Harmonizing and media ng the trade union ac vi es. Ÿ Encouraging to implement ILO Core Labour Standards.
4) Facilitate to maintain a produc ve labour force Ÿ Facilitate to meet the manpower requirement through job placement centres (Job Banks). Ÿ Organizing the programme / workshop to educate the employees on posi ve thinking / Industrial Safety and Health Services etc., Ÿ Encourage to offer special career development programme for the employees (e.g. Foreign training). Ÿ Facilitate to resolve the industrial disputes speedily. Ÿ Establishment of Day Care Centres in EPZs for the children of EPZ employees. SRI LANKA : Investment Guide to Sri Lanka 2018
Ensuring Environment Friendly Development
Environment Management Department of the BOI is concerned on importance of striking a balance between development and environment – where commitment to protect the natural environment goes hand in hand with industrial development. In this context, the Environment Management Department remains firmly commi ed to environmentally friendly development.
In this context, the Department assist the investors by way of;
Ÿ Gran ng environmental approvals for projects. Ÿ Issuing Environmental Protec on Licences. Ÿ Inves ga ng public complaints and recommending suitable mi gatory measures. Ÿ Execu ng the func ons related to Environmental Impact Assessment procedures under the EIA regula ons in instances where the BOI acts as the Project Approving Agency. Ÿ Making recommenda on for chemical imports. Ÿ Providing advice and guidelines for investors in industrial si ng and pollu on control including waste treatment & disposal. Ÿ Carrying out post compliance monitoring. Ÿ Liaising with other agencies, organiza ons and departments in ac vi es related to Natural Resources Management and Environmental Pollu on Control.
The environmental approval procedure in respect of BOI projects are in accordance to the Na onal Environmental Regula ons made under the provisions of the Na onal Environmental Act (NEA) of Sri Lanka. This procedure is executed by the Environment Management Department of the BOI in consulta on with the Central Environmental Authority (CEA), which is the authorized body in Sri Lanka for the implementa on of the Na onal Environmental Act and its Regula ons.
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10. Incen ves
FISCAL INCENTIVES The Inland Revenue Act No. 24 of 2017 provides an Incentive Regime granting reduced tax rates (for speci ic sectors) and Enhanced Capital Allowances based on capital investments made by the investors, and this will be effective from 1st April 2018.
Reduced Tax Rates Duty Exemp ons on Importa on of Project Related Capital Goods • Concessionary rate of 14% for ; Exemp on on Customs Duty • Small and Medium Enterprises, Customs Duty Exemp on on imports of project • A company predominantly; related capital goods (plant, machinery and - conduc ng a business of expor ng equipment). goods and services - conduc ng an agricultural business Exemp on on Ports & Airport Development Levy - providing educa onal services - engaged in an undertaking for the • Large scale export-oriented manufacturing promo on of tourism companies with an investment of over USD - providing informa on technology 200 million, which has entered into an services agreement on or a er November 1, 2016, with • Standard rate remains at 28% the Board of Investment of Sri Lanka will be exempted from paying Ports and Airports • Higher rate of 40% for Be ng & Gaming and Liquor Development levy (PAL) for impor-ta on of & Tobacco project related capital goods during the project implementa on period. Enhanced Capital Allowance (ECA)
• Investment incen ves and temporary conces- • PAL Exemp on for selected capital goods sions in the form of Enhanced Capital Allowance Out of a total of 652 Machinery & Appliances (ECA) in addi on to normal deprecia on items (Chapter 84 under HS Code classifica- allowance. (For details see Appendix I) on), PAL is exempted for 118 items and Lower rate of 2.5% applicable for 52 items.
Duty Exemp ons on Importa on of Raw Materials foe Export Customs Duty, VAT, PAL, and NBT are exempted for importa on of raw materials for export oriented projects.
NON-FISCAL INCENTIVES
Foreign Equity Repatria on of Earnings
100% foreign ownership permissible. However, foreign ownership is not permissible for Pawn Broking, Retail All income, proceeds on sale of the investments can be Trade (where a capital contributed by a person resident repatriated through an Inward Investment Account outside Sri Lanka) with a capital of less than five million opened by the Investor. USD and Coastal Fishing. SRI LANKA : Investment Guide to Sri Lanka 2018
11. Investment Poten al in Sri Lanka
Key Target Sectors
Sector Subsectors Sri Lanka's Strength
Manufacturing • Automo ve components, • Growing global demand with an opportunity to link to the (High Value medical devices, Global Value Chains Added /High pharmaceu cals, solar • Strong market opportunity and economic impact poten al Tech) panels, fabricated metal for Sri Lanka parts, value added • Precision and adaptable workforce minerals
Manufacturing - Apparel • Lingerie • Proven track record and compelling value proposi on (High value-added) • Smart tex les (wearable • Interna onally compe ve on metrices such as skills and technology) educa on level; efficient and highly compe ve port for • Other poten al high-value apparel trade clothing items (especially • Growing demand from India (with FTA benefits) and beyond niche products) • Innova on & research
IT-Enabled • IT so ware • Job crea on track record and poten al Services • BPM • Strong exis ng cluster and value proposi on • KPM • Interna onally compe ve wage and real estate costs
Tourism • Hotels • Strong market opportunity and economic impact poten al • Recrea onal ac vi es for Sri Lanka (theme parks) • Strong Sri Lankan value proposi on • Adventure sports & leisure • Interna onally compe ve on numerous metrics (natural facili es & cultural assets; compe ve infrastructure; rapid sector growth etc.)
Food Processing • Fish / seafood • Strong value proposi on (diverse selec on of raw • Fruit and vegetables products; good domes c infrastructure; a rac ve local • Dairy and regional market) • Strong food processing poten al compared to compe tor markets in the region
Logis cs • Entrepot trade • Compe ve strength of regional loca on, water depths • Transporta on and shipping routes • Warehousing & storage • Strong poten al as a Mul -Country Consolida on (MCC) hub • Improving infrastructure • Geo strategic loca on with efficient port facili es
Educa on • Voca onal and higher • Requirement of matching the skills with growing industry educa on demand
Large Scale • Mixed Development • Growing demand for high- end apartments, office spaces Infrastructure • Industrial Zone Development and shopping centers with interna onal standards
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Western Region Megapolis Planning Project
Western Region Megapolis also called Western Region Megapolis Planning Project (WRMPP) is an urban planning, zoning, and development project aimed at crea ng a planned Megapolis in Sri Lanka's Western Province by 2030. The main goals of the project are for economic growth and prosperity, good governance, crea on of an efficient and well-planned region, social equity and harmony as well as environmental sustainability.
The 10 Mega Sectors Under Megapolis Project Plan i) Transport, Energy and Water ii) Housing and Reloca on of Administra on iii) Environment and Waste Management iv) The Aero Mari me Trade Hub v) ‘The High Rise’ - Central Business District vi) Industrial and Tourist Ci es vii) Science and Technology City viii) ‘Eco Habitat' and Planta on City ix) ‘Smart Na on'- The Smart City Development Project x) ‘Tranquility' – The Spiritual Development Facilita on
Opportuni es in Colombo Interna onal Financial City (CIFC)
Spanning 269 hectares of reclaimed land from the sea, Port City Colombo will be South Asia's premier residen al, retail and business des na on, offering unmatched planned city living along the warm waters of the Indian Ocean. The Port City Colombo has been designed with five unique precincts; Financial District, Central Park Living, The Marina, Interna onal Island and Island Living.
Renamed as the Colombo Interna onal Financial City (CIFC), it has already a racted numerous investment enquiries from all over the world as much as 60% of reclama on has now been completed and once fully opera onal, expected to a ract investment of USD 15 Bn with 83,000 new employment opportuni es.
SRI LANKA : Investment Guide to Sri Lanka 2018
Appendix 1 – Legal Framework
Board of Investment Law No. 4 of 1978
- Board of Investment of Sri Lanka (Amendment) Act. No. 43 of 1980 - Board of Investment of Sri Lanka (Amendment) Act. No. 21 of 1983 - Board of Investment of Sri Lanka (Amendment) Act. No. 49 of 1992 - Board of Investment of Sri Lanka (Amendment) Act. No. 9 of 2002 - Board of Investment of Sri Lanka (Amendment) Act. No. 36 of 2009 - Board of Investment of Sri Lanka (Amendment) Act. No. 3 of 2012 (Refer: www.investsrilanka.com)
Inland Revenue Act No.24 of 2017
Summary of the investment incen ves
Location Expenses incurred on Depreciable Enhanced Extended Period for xemption from Assets* Capital Deducting ividend tax & Allowance Unrelieved Losses xemption of mployment ncome from
Northern > US$ 3 Mn and < = US$ 1 000 Mn 200% 10 X Province > US$ 1000 Mn 200% 25 P Other than > US$ 3 Mn and < = US$ 100 Mn 100% 10 X Northern > US$ 100 Mn and < = US$ 1,000 Mn 150% 10 X Province > US$ 1000 Mn 150% 25 P * Other than intangible assets (Class 5) Classifica on of Depreciable Assets Class 1 : computers and data handling equipment together with peripheral devices Class 2 : buses and minibuses, goods vehicles; construc on and earthmoving equipment, heavy general purpose or specialised trucks, trailers and trailer-mounted containers; plant and machinery used in manufacturing. Class 3 : railroad cars, locomo ves, and equipment; vessels, barges, tugs, and similar water transporta on equipment; aircra ; specialised public u lity plant, equipment, and machinery; office furniture, fixtures, and equipment; any depreciable asset not included in another class. Class 4 : buildings, structures and similar works of a permanent nature Class 5 : intangible assets, excluding goodwill – applicable only for normal deprecia on
Special incen ves for Sate Owned Company Category Expenses incurred Enhanced Extended Period Exemption from on Assets or Shares Capital for Deducting Dividend tax & Allowance Unrelieved Exemption of Losses employment income from WHT State owned company > US$ 250 Mn 150% 25 P
“state owned company” means any company, where fi y per centum or more of the shares are held by the Government and includes a company of which forty per centum or more of the shares held by the Government are acquired by a person for an amount not less than USD 250 million SRI LANKA : Investment Guide to Sri Lanka 2018
Temporary Concessions
Loca on Expenses incurred on Enhanced Capital Depreciable Assets* Allowance Northern Province Up to US$ 3 Mn 200% Other than Northern Province Up to US$ 3 Mn 100%
* (a) Class 1 : computers and data handling equipment together with peripheral devices and Class 4 : buildings, structures and similar works of a permanent nature and (b) Depreciable assets (other than intangible assets) comprising plant or machinery that are used to improve business processes or produc vity and fixed to the business premises.
Above temporary concessions will expire in 3 years.
Sector Incentives Period (after commencement of the Act) Business of Life Insurance Reduced CIT rate of 14% 3 years Information Technology Additional deduction equal to 35% ceiling of - conducts a business which predominately (of the total amount deducted for the 5 years consists of providing information technology year under the IR Act that represents services payments made by the company - has at least 50 employees during the whole of which are to be included in calculating the year the taxable income of its employees) - report those employees in the statement that * Not entitled for enhanced capital the company, as a withholding agent, is allowance required to file under section 86 Headquarters Relocation CIT Rate at 0% 3 years (established on or after October 1, 2017) Renewable Energy Reduced CIT rate of 14% 3 years (Which entered into a Standardized Power Purchase Agreement on or before November 10, 2016 with the Ceylon Electricity Board ) Research and Development Additional deduction equal to 3 years 100% of the total amount of research and development expenses
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Foreign Exchange Act No. 12 of 2017
Exchange Control Laws Applicable for foreign Investments
In accordance with the Foreign Exchange Act No 12 of 2017, the Minister in charge has gaze ed relevant regula ons in the Extraordinary Gaze e No 2045/56 dated 17-11-2017 with the Exchange Control Provisions applicable for foreign investments which read as follows;
A person resident outside Sri Lanka is permi ed to Invest, acquire or hold all classes of shares or an en tlement of shares issued by companies incorporated in Sri Lanka subject to the exclusions & limita ons as follows;
Exclusions:- The permission hereby granted shall not apply in respect of shares of a company proposing to carry on any of the following businesses: I. Pawn broking ii. Retail trade with a capital of less than Five Million US Dollars iii. Coastal Fishing
Limita ons:- (a) Foreign investments in the areas listed below will be approved only up to 40% of the stated capital of such company or if a special approval has been granted by the Board of Investment of Sri Lanka for a higher percentage of foreign investment in any company, only up to such higher percentage. I. Produc on of goods where Sri Lanka's exports are subject to interna onally determined quota restric ons ii. Growing and primary processing of tea, rubber, coconut, cocoa, rice, sugar and spices iii. Mining and primary processing of non-renewable na onal resources iv. Timber based industries using local mber v. Deep Sea Fishing (as defined by the Ministry assigned the subject of Fisheries) vi. Mass Communica on vii. Educa on viii. Freight Forwarding ix. Travel Agencies x. Shipping Agencies
(b) The permission shall apply in respect of shares in a company carrying on or proposing to carry on any of the businesses specified below only up to the percentage of the stated capital of the company, for which percentage either general or special approval has been granted by the Government of Sri Lanka or any legal or administra ve authority set up for the approval of foreign investments in such businesses a. Air transporta on; b. Coastal shipping (as defined by the Ministry assigned the subject of Shipping); c. Industrial enterprise in the Second Schedule of the Industrial Promo on Act, No. 46 of 1990, namely – I) any industry manufacturing arms, ammuni ons, explosives, military vehicles and equipment aircra and other military hardware; II) any industry manufacturing poisons, narco cs, alcohols, dangerous drugs and toxic, hazardous or carcinogenic materials; any industry producing currency, coins or security documents; d. Large scale mechanized mining of gems; e. Lo eries
General Condi ons for Permi ed Investments - Capital Investments shall be made through an “Inward Investment Account (IIA)” - Income from such investments and proceeds of disposal shall be credited to IIA SRI LANKA : Investment Guide to Sri Lanka 2018
Finance Act No.12 of 2012
Government has announced to setup Free Ports and Bonded Areas to create trade related infrastructure to facilitate import and export of goods and services and the related legal provision are contained in;
- In 2012, the Finance Act No. 12 of 2012 first announced the legisla on applicable for Commercial Hub ac vi es. - In 2013, amendments were made by Finance Act No 12 of 2013 - Commercial Hub Regula on No 01 of 2013 (Gaze e No. 1818/ 30) issued on 11-07-2013
Declared Free Ports and Bonded Areas
Declared Free Ports Colombo & Hambantota
Declared Bonded Areas Katunayake EPZ & Koggala EPZ
Specified Bonded Areas for projects Ma ala Rajapaksha Interna onal Air Port engaged in entrepot trade with & Mirijjawila EPZ approval for manufacturing or assembling a product
What are Free Port (FP) & Bonded Areas (BA) for the purpose of Finance Act 12 of 2012 ? Areas “which are geographically inside Sri Lanka but are legally considered outside its customs territory”.
Imports to FP /BA
Exports from FP/BA
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Permi ed Ac vi es Ÿ Delivery Time - Reduc on in custom clearance me and be er logis cs connec vity leading to Ÿ Entrepot trade involving an import, minor improved delivery me. processing and re-export. Enterprise involved in Ÿ Support Facili es and Effec ve Management - Entrepot trade with approval for manufacturing Provision of efficient management services and or assembling a product interna onal exper se along with support Ÿ Off-shore business where goods can be procured facili es such as banking, insurance etc. from one country or manufactured in one country and shipped to another country without bringing Defini ons Referred in Commercial Hub Regula on No 01 the same into Sri Lanka of 2013 under Finance Act No.12 of 2012 and Its Ÿ Providing front end services to clients abroad Amendments Ÿ Opera ons of the Headquarters of leading buyers for the management of the finance supply chain Ÿ “Free Port” means an area within a sea port or an and billing opera ons inland dry port under the supervision of SLPA and Ÿ Logis c services such as a bonded warehouse or declared by the regula ons under this Act. in the case of opera on of mul -country Ÿ “Bonded Area” means an area supervised by the consolida on in Sri Lanka BOI or DG customs or any other authority and declared by the regula ons under this Act. Ac vi es (a) and (e) required to be operated within a free Ÿ “Entrepot trade” includes any manufacturing port or bonded area since it involves physical ac vity approved under Part IV of Finance Act No movement of goods. However, an enterprise involved in 12 of 2012 as amended and carried out by a new entrepot trade and engaged in manufacturing or enterprise for re-export with a domes c value assembling requires to locate in a free port or specified addi on at a minimum rate of 10% within a free bonded area port or designated bonded area or in a specified bonded area if the enterprise is engaged in Manufacturing under Entrepot Trade manufacturing or assembling products with approval. Ÿ Considering the importance of availing a product Ÿ “logis c service” include the followings in domes c market in the interest of na onal (I) Transshipment ac vi es; economy, an enterprise engaged in entrepot trade in manufacturing a product shall be (ii) Warehousing for temporary storage of permi ed local sales up to a certain percentage input or finish goods for local exporters; and payable in SL Rupees by the BOI with prior (iii) Freight forwarding for clients abroad; concurrence of Ministry of Finance for such products, subject to provisions of Customs Ordinance. Ÿ The turnover of such domes c sales shall be treated as turnover from deemed exports.
Poten al Benefits Ÿ Product Storage Facili es - Assist in mee ng specific warehousing requirement for each product category e.g. different sec ons for storage of food items. Ÿ Shared warehousing - Availability of temporary storage facili es to enable users to meet short term demand without incurring significant costs (e.g. leasing space for a year to meet 2 to 3 months demand). Ÿ Shared Equipment - Ability of users to save on capital investments by leasing equipment provided by the Free Zone or Bonded Area. SRI LANKA : Investment Guide to Sri Lanka 2018
Tax Regime
Type of Tax Tax Base Applicable Tax Rate Remarks Applicable for Company Corporate Income Tax Profits Standard Rate 28% (CIT) Reduced Rate : 14% With effect from 01.04.2018 Economic Service Turnover 0.5% Tax Liability Charge (ESC) For all companies
Registration Threshold Liable turnover Rs. 12.5 million for any quarter commencing on or after 01.04.2017. Withholding Tax on Dividends 14% Dividends (WHT) distributed Value Added Tax (VAT) Value of supply Standard Rate : 15% Registration Threshold of goods or Taxable supply of goods or services exceed Rs. 3 Mn. services per quarter or Rs. 12 Mn, per annum Nation Building Tax Turnover 2% Liable Limit (NBT) Rs. 3,000,000 - For any quarter Rs. 25,000,000 - For processing of any locally procured agricultural produce in the preparation for sale Applicable for Imports Customs Duty CIF Value Capital Goods : Exempted (During the Project Implementation Period) Raw Materials : Exempted for export oriented companies Value Added Tax (VAT) CIF Value* 15% VAT exempted export oriented companies located in Applies to other than the Katunayake, Biyagama, Koggala, Kandy, Wathupitiwela, exempted items. Malwatta & Mirigama EPZs
Zero Rate for selected Registration threshold few items Import of goods exceeds Rs. 3 Mn. per quarter or Rs. Deferment facility for 12 Mn, per annum export oriented companies Nation Building Tax CIF Value* 2% Exempted for selected few machinery items (NBT) Raw material imported for processing and export is exempted from the payment of NBT. Port & Airport CIF Value 7.5% Raw material imported for processing and export is Development Levy 2% for few machinery exempted from the payment of PAL. (PAL) items. CESS (EDB Import Cess) CIF Value* Depends on the item Excise Duty CIF Value Depends on the item Applies on vehicles, liquor sugar tax on sweetened beverages, plastic resins & tobacco Special Commodity CIF Value Depends on the item Levy Economic Service CIF Value* Depends on the item Applies on any article subject to Special Commodity Charge (ESC) Levy, gold, precious metals and motor vehicles
* Tax base will be the main component when computing import levies as per the formula.
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Land (Restric on on Aliena on) Act No.38 of 2014 Salient features of the Act
1. Outright Transfers
Acquisi on of land by foreigners or foreign companies or Sri Lankan company with more than 50% foreign shareholding is prohibited subject to few exemp ons.
The following table provides the restric ons (Sec on 2), exemp ons (Sec on 3) to the law and some condi ons that needs to be fulfilled in this regard. SRI LANKA : Investment Guide to Sri Lanka 2018
2. Leasing of Lands to Foreigners Liability to pay stamp duty & other fees Sec on 6 (4)
Sec on 5 A The Lessee shall be liable to pay applicable stamp duty Notwithstanding anything to the contrary in any of the under the Stamp Duty Act, No. 43 of 1982 and any other provisions of this Act, the provisions rela ng to the tax or charge payable in respect of any such transac ons. Land Lease Tax shall not apply to a lease of any land— (a) to a foreigner; or Land Reform Act shall apply (Sec on 12) (b) to a company incorporated in Sri Lanka under the Companies Act, where any foreign shareholding in such The provisions of the Land Reform Law, No. 1 of 1972, on company, either direct or indirect, is fi y per cent or the maximum extent of land that can be owned by any above; or person, shall con nue to apply in respect of any transfer © to a foreign company, under and indenture of lease of tle or lease of a land exempted from the applica on executed on or a er January 8, 2017, and accordingly the of the provisions of this Act. Land Lease Tax shall not be charged, levied or collected from any such person or company on or a er such date” Valua on of Land (Sec on 13) subject to a maximum tenure of 99 years. (a) State land – by the Government chief valuer; and 3. General Condi ons (b) Private land - by a licensed valuer. and the total lease rental shall be calculated based This sec on provides general rules applicable to lands on the above valua on. transferred or leased under the new law and the interpreta ons. Concessions for Development Projects (Sec on 16)
Restric on on Mortgaging (Sec on 11) Where a State land is transferred or leased to a project approved by the Cabinet of Ministers as a Development Any land transferred or leased to a person or a company Project to which freehold right or leasehold right of the referred to in Sec on 2 (1) and 5 (1) of Land (Restric ons State land to be transferred, such project shall be granted on Aliena on) Act, a er the date on which the cer ficate a deduc on amoun ng to 25% of the land value or total of the speaker is endorsed in respect of this Act (October lease rental, determined under sec on 13: 29, 2014) shall not be mortgaged or pledged to any licensed bank, for a period of 5 years from the date of Provided such Development Project shall be imple- execu on of the transfer or lease. mented either by (a) a ci zen of Sri Lanka; or (b) a company incorporated in Sri Lanka, where the Sri Lankan (A) Lease / transfers prior to cer fica on of Land shareholding is 50% or above. (Restric ons on Aliena on) Act (Sec on 20)
(a) Any transfer deed to a person or a company referred in sec on 2(1), executed prior to January 1, 2013 and pending registra on in shall be registered subject to the provisions of repealed Part VI of Finance Act, No. 11 of 1963, notwithstanding the fact that it was repealed. (b) Any Lease / transfer executed to a person or a company under sec on 2(1) or 5(1) of Land (Restric ons on Aliena on) Act, from January 1, 2013 to October 29, 2014 shall be subject to the provisions of the said Act.
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Appendix 2 – Aproval Process
From the point of inquiry, throughout the life span of the project, the BOI facilitates its investors in providing informa on, selec ng land, and providing guidance for project approvals for speedy takeoffs. Approval Process
BOI Approvals
Applica on Submission for BOI Approvals
Project Screening Committee Single Window Investment Approval Committee Land Committee Approval including chaired by Secretary to the treasury/ approval - allocating environmental/ engineering Investment Approval Facilitation Committee BOI/Zone lands clearance in principal chaired by the Senior Advisor to the Prime Minister
Le er of Acknowledgment Line Agency Approval Assigning a of Business Ac vity Project Officer (Appraisal Department grants the approvals) Opening of Bank A/C IIA (optional) Project Ac vity Incorpora on of Company - Preliminary Clearance of Project Site Approval 1 (Dept. Registrar of Companies) Ac vity (Engineering - Environment ClearanceÖ1 Approvals Dept. BOI. - Preliminary Clearance for Sourcing This incorporates of raw materials Environmental - Rules of Origin Cer ficate Clearance - Import/Export License process by the Environment Formal Le er of Approval Dept.-BOI) Preliminary Planning Clearance for the building Collect the Draft Agreement Signing of Agreement (Sec on 17 projects) Opening of Bank A/C
FCBU / IIA Ö1 Development Permit (Building Approvals)
Commence Implementa on (Within the specified period) U li es - Electricity Import (Duty Free Items)/ Export Registra on for VAT/TIN Ceylon Electricity Board - Water - BOI Approval (Inland Revenue Dept.) Na onal Water Supply & (Investment Appraisal Dept/ Import Export Registra on Drainage Board Engineering Dept.) (SL Customs) - Registra on - Telecommunica on (Investor Services Dept.) Sri Lanka Telecom/Private Company Work Permit & Residence Visa (Ministry of Defense & Dept. of Immigra on Recommenda on for WorkÖ 2 Permits & Residence Visa Cer ficate of Conformity (COC) & Emigra on) (Investment Appraisal Dept. –BOI) Environment Protec on Cer ficate of Conformity (COC)Ö1 License (EPL)Ö1
IIA : Inward Investment Account FCBU : Foreign Currency Banking Unit Commence Commercial Opera on Ö1 If applicable only Ö2 Residence visa can be obtained at any stage of the process SRI LANKA : Investment Guide to Sri Lanka 2018
Appendix 3 – Factor cost*
Water Commercial Rates
US$ US$ US$ US$ US$ US$
Exchange Rate : Rs. 152.40/US$ * The tariff and costs included in this booklet are to be used as a general guide for investors in Sri Lanka and for exact details they are advised to refer to relevant line agency websites
Electricity
Summary of Customer Types: Industrial I – 1 - contract demand is less than or equal to 42 kVA. General Op onal tariff sub categories 011, 012, 013* in the gaze e No. 1904/58 I – 2 - contract demand exceeds 42 kVA I – 3 - supply delivered and metered at 11,000 Volt nominal and above Hotel H- 1 contract demand is less than or equal to 42 kVA. H- 2 contract demand exceeds 42kVA H- 3 supply delivered and metered at 11,000 Volt nominal and above SRI LANKA : Investment Guide to Sri Lanka 2018
Customer Type: Industrial Supply of electricity to be used for 'Agriculture', 'Forestry and Fishing', 'Mining and Quarrying', 'Manufacturing', 'Electricity, Gas, Steam and Air Condi oning Supply', 'Water Supply; Sewerage, Waste Management and Remedia on Ac vi es' as classified under the relevant sec ons of the detailed classifica on published in the website of Public U li es Commission of Sri Lanka, for electricity tariff purposes. I-1 Contract demand is less than or equal to 42 kVA.
400/230 V General Purpose Industrial Purpose Contract demand ≤ 42 kVA Tariff Code Tariff Code Energy Charge (LKR/kWh) Monthly Consump on Less than or equal 300 18.30 10.80 More than 300 22.85 12.20 Fixed Charge Less than or equal 300 - - More than 300 240 600 Ÿ An op onal tariff relevant to industrial consumers under following sub categories 011, 012, 013* having a contract demand of less than 42kVA and connected to 400/230V.
400/230 V Industrial Purpose Contract demand <42 kVA Tariff Categary Energy Charge (LKR/kWh) Peak 20.50 Day 11.00 Off Peak 6.85 Demand charge per month (Rs/kVA) Fixed Charge (LKR/month) 300 300
(* For Growing of non-perennial crops, Growing of perennial crops and Plant propaga on Indicated in the gaze e No. 1904/58 - FRIDAY, MARCH 06, 2015)
I-2 Contract demand exceeds 42 kVA
400/230 V General Purpose Industrial Purpose Contract demand >42 kVA Tariff Category Tariff Category Energy Charge (LKR/kWh) Peak 26.60 20.50 Day 21.80 11.00 Off Peak 15.40 6.85 Demand charge per month (Rs/kVA) 1100 1100 Fixed Charge (LKR/month) 3000 3000
I-3 Supply delivered and metered at 11,000 Volt nominal and above
Supply delivered and metered at General Purpose Industrial Purpose 11,000V nominal and above Tariff Category Tariff Category Energy Charge (LKR/kWh) Peak 25.50 25.50 Day 20.70 20.70 Off Peak 14.35 14.35 Demand charge per month (Rs/kVA) 1000 1000 Fixed Charge (LKR/month) 3000 3000
1 SRI LANKA : Investment Guide to Sri Lanka 2018
Customer Type: Hotel
Supply of electricity used for hotels approved by the Sri Lanka Tourism Development Authority.
H-1 Contract demand is less than or equal to 42 kVA
400/230 V Hotel Purpose Contract demand = 42 kVA Tariff Category Energy Charge (LKR/kWh) 21.50 Fixed Charge (LKR/kWh) 600
H-2 Contract demand exceeds 42kVA 400/230 V Hotel Purpose Contract demand >42 kVA Tariff Category Energy Charge (LKR/kWh) Peak 23.50 Day 14.65 Off Peak 9.80 Demand charge per month 1100 (Rs/kVA) Fixed Charge (LKR/month) 3000
H-3 Supply delivered and metered at 11,000 Volt nominal and above
Supply delivered and metered at Hotel Purpose 11,000V nominal and above Tariff Category Energy Charge (LKR/kWh) Peak 22.50 Day 13.70 Off Peak 8.80 Demand charge per month (Rs/kVA) 1100 Fixed Charge (LKR/month) 3000
Net Metering to reduce Electricity Cost Net metering facility allows consumers to totally eliminate their electricity bill by using renewable energy sources. Every on- grid household and commercial or industrial consumers can u lize solar energy, to generate electricity by installing solar photovoltaic (PV) panels on their own roofs and can become electricity producers mee ng their electricity demand partly or fully by themselves and can even sell excess electricity produced to the na onal grid. If a par cular customer's produc on exceeds his consump on, he can bring forward the balance and consume it in the months forthcoming within a 10 year period.
In Sri Lanka this arrangement is applicable for exis ng or newly built genera ng facili es using renewable sources and the capacity of the genera ng facility need to be less than 1000kVA. The approved types of renewable sources are micro hydro, wind, solar PV, biomass, agricultural and municipal waste. The customer is required to enter into an Agreement, with the u lity (CEB or LECO), namely, the Agreement and Grid Interconnec on Standards for Net-metering of an On-grid Renewable Energy based Genera ng Facility.
Government is expected to add 200 MW of solar electricity to the na onal grid by 2020 and 1000 MW by 2025. Therefore, this concept of net metering would be more beneficial for electricity intensive industries in Sri Lanka. SRI LANKA : Investment Guide to Sri Lanka 2018
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Telecommunica on Rates
A) Domes c Call Charges for Business Ac vi es (Sri Lanka Telecom)
1. Fibre New Connec on Charges and Monthly Rental
SLT Fibre (FTTx Technology) connec ons are available in three different packages, depending on your requirement and range from Voice + Broadband, Broadband + PeoTV or Voice + Broadband + PeoTV.
New Connection Charges Monthly Rental Services Calling Free Connection Offered Plan Services Charge Triple Play Voice + Home or n.a Rs.12,500 630 Broadband, PeoTV Office Double Play Voice + Peo TV Home or n.a Rs.12,500 630 Office Double Play Voice + Home or N.a Rs.12,500 630 Broadband office
Notes ·All new connec ons are subjected to minimum 01 year commitment period. · Rs.5000 will be charges for early termina on within the commitment period. · Above charges are exclusive of taxes. Relevant taxes will be applicable at the me of purchase. · Monthly rental for each addi onal telephone: Rs.200.00 · Monthly rental for each addi onal telephone with Customer Owned Instrument: Rs.40.00
1 SRI LANKA : Investment Guide to Sri Lanka 2018
Calling Plans
Double Play (voice+ broadband + internet Triple Play (Voice + Broadband + or PEO TV Internet + PEO TV) Up to 3rd Minute Beyond 3rd Minute Up to 3rd Minute Beyond 3rd Minute SLT to SLT 1.70 1.50 1.50 1.50 SLT to other 2.70 2.00 2.50 2.00 · Above charges are exclusive of taxes. Relevant taxes will be applicable at the time of purchase.
2. Megaline - New Connec on Charges and Monthly rental SLT Megaline connec ons (wireline telephone connec ons) are available in three different packages, depending on your requirement and range from Voice only package to Voice + Broadband or PeoTV to Voice + Broadband + PeoTV New Connection Charges Monthly rental Services Calling Free Connection SLT Owned Customer Offered Plan Services Charge Instruments Owned Instruments Triple Play Voice + Mega Home or N/A Rs.10,000 Rs.499 Rs.454 Broadband, Mega Office PeoTV Double Play Voice + Mega Home or N/A Voice + Broadband or Mega Office Braodbank Voice + Peo TV vithout CPE * Rs.7,000
Voice + Peo TV Rs.11,000 Single Play Voice Mega Home or N/A Rs.12,000 Mega office · A Minimum sign-up period of one year is required for above packages. ·P ackage downgrades are not allowed during the commitment period. ·It is mandatory for Mega Double Play and Mega Triple Play customers to select any one of the Broadband and/or PeoTV package. Broadband and PeoTV startup fee will not be applicable. ·F or distances exceeding 500m from last Distribu on Point (DP), a charge of Rs. 2,400 per addi onal 100m will be charged in addi on to the relevant new connec on charge. ·Abov e charges are exclusive of taxes. Relevant taxes will be applicable at the me of purchase.
Calling Plans
Single (Voice Only) Double Play (Voice + Triple Play (Voice + Broadband + Internet + Broadband internet + Peo TV) PEO TV) Up to 3rd Beyond 3rd Up to 3rd Beyond 3rd Up to 3rd Beyond 3rd Minute Minute Minute Minute Minute Minute SLT to SLT 1.90 1.50 1.50 1.50 1.50 1.50 SLT to other 2.90 2.00 2.70 2.00 2.50 2.00 SLT internet Dial-up 0.50 0.50 0.50 0.50 0.50 0.50
·Abov e charges are exclusive of taxes. Relevant taxes will be applicable at the me of purchase. SRI LANKA : Investment Guide to Sri Lanka 2018
3. 4G LTE - New Connec on Charges vs. Monthly Rental
SLT 4G/LTE connec ons (Fixed 4G/LTE Technology) are available in two different packages, depending on your requirement and range from Voice only package to Voice + Broadband.
New Connection Charges Monthly Services Calling Free Connection Rental Offered Plan Services Charge Double Play Voice + Broadband Home or Office N/A Rs.1,900 Rs.499.00 Single Play Broadband Home or Office N/A Rs.2,400 -
·A minimum subscrip on period of 01 year is required. ·Rs.5000 will be charged for early termina on within the commitment period. ·All charges above are exclusive of Government taxes and will be applicable at the me of purchase.
Calling Plans
Single (Voice Only) Up to 3rd Beyond 3rd Minute Minute SLT to SLT 1.70 1.50 Note : SLT to Other 2.70 2.00 Above charges are exclusive of taxes. Relevant taxes will be applicable at the me of purchase.
B) IDD Call Charges Rate (per second)
Per Second Country To Fixed Telephone Rs To Mobile Rs.
Australia 7.00 18.00
Canada 4.90 4.90
India 3.90 3.90
Italy 4.90 18.00
Japan 7.00 20.00
Qatar 19.00 25.00
Saudi Arabia 19.00 19.00
UAE 20.00 20.00
UK 7.00 18.00
USA 4.90 4.90 Note : · The above tariffs are charged on per second basis. · Government taxes and levies applicable. · Exchange Rate : Rs 152.40/US$
1 SRI LANKA : Investment Guide to Sri Lanka 2018
C) Internet- Packages
1. Fibre (FTTx) - Packages
SLT Broadband proudly introduced FTTx Technology, taking the speeds up to as much as 100 Mbps.
Monthly Download Upload Monthly Monthly Total special Rental Speeds up Speed up Usage Additional Monthly Free to to Volume Free Usage Usage Offers (GB)* Volume (GB)** Family Web Family Rs.1490.00 100 Mbps Up to 36 54 90 01 email Plus Max 50 Mbps account Web Family Rs.2690.00 100 Mbps Upto 60 90 150 01 email Xtra Max 50 Mbps account Supper Middle Web Pro Rs.4890.00 100 Mbps Up to 95 140 235 02 email Max 50 Mbps account Web Master Rs.8890.00 100 Mbps Up to 170 255 425 05 email Max 50 Mbps account Heavy Web Champ Rs.13690.00 100 Mbps Up to 270 405 675 05 email Max 50 Mbps account Web Life Rs.19890.00 100 Mbps Up to 400 600 1000 05 email Max 50 Mbps account Ultra Heavy Web Inspire Rs.33000.00 100 Mbps Up to 70 1000 1700 05 email Max 50 Mbps account Web Premier Rs.58000.00 100 Mbps Up to 1250 1750 3000 05 email Max 50 Mbps account
* Upload (Peak & Off-peak), Download (Peak & Off-peak) (This will be the Maximum Download Volume during peak hours) ** Upload (Peak & Off-peak), Download (Off-peak)
SRI LANKA : Investment Guide to Sri Lanka 2018
2. Mega Line (ADSL) SLT Broadband proudly introduced faster internet speeds, taking the speeds up to as much as 21 Mbps.
Monthly Download Upload Monthly Monthly Total Rental Speeds up Speed up Usage Additional Monthly to to Volume Free Usage Usage (GB)* Volume (GB)**
Light Entree Rs.499.00 Up to Up to 7 - 7 21 Mbps 512 Kbps Web Lite Rs.450.00 Up to Up to 6 9 15 21 Mbps 512 Kbps Web Starter Rs.740.00 Up to Up to 11 17 28 21 Mbps 512 Kbps Web Pal Rs.990.00 Up to Up to 18 27 45 21 Mbps 512 Kbps Family Web Family Plus Rs.1490.00 Up to Up to 36 54 90 21 Mbps 1 Mbps Web Family Xtra Rs.2690.00 Up to Up to 60 90 150 21 Mbps 1 Mbps Super Middle Web Pro Rs.4890.00 Up to Up to 95 140 235 21 Mbps 1 Mbps Web Master Rs.8890.00 Up to Up to 170 255 425 21 Mbps 1 Mbps Heavy Web Champ Rs.13,690.00 Up to Up to 270 405 675 21 Mbps 1 Mbps
Web Life Rs.19,890.00 Up to Up to 400 600 1000 21 Mbps 1 Mbps Ultra Heavy Web Inspire Rs.33,000.00 Up to Up to 700 1000 1700 21 Mbps 1 Mbps
Web Premier Rs.58,000.00 Up to Up to 1250 1750 3000 21 Mbps 1 Mbps
1 SRI LANKA : Investment Guide to Sri Lanka 2018
3. 4G Lite
SLT 4G/LTE Broadband proudly introduced fastest internet speeds, taking the average speed up to as much as 8 Mbps.
Monthly Download Upload Monthly Monthly Total Rental Speeds up Speed up Usage Additional Monthly to to Volume Free Usage Usage (GB)* Volume (GB)** Light Web Lite Rs.450.00 Up to Up to 6 9 15 8 Mbps 1 Mbps Web Starter Rs.740.00 Up to Up to 11 17 28 8 Mbps 1 Mbps Web Pal Rs.990.00 Up to Up to 18 27 45 8 Mbps 1 Mbps Family Web Family Plus Rs.1490.00 Up to Up to 36 54 90 8 Mbps 1 Mbps Web Family Xtra Rs.2690.00 Up to Up to 60 90 150 8 Mbps 1 Mbps Super Middle Web Pro Rs.4,890.00 Up to Up to 95 140 235 8 Mbps 1 Mbps Web Master Rs.8,890.00 Up to Up to 170 255 425 8 Mbps 1 Mbps Heavy Web Champ Rs.13,690.00 Up to Up to 270 405 675 8 Mbps 1 Mbps Web Life Rs.19,890.00 Up to Up to 400 600 1000 8 Mbps 1 Mbps Ultra Heavy Web Inspire Rs.33,000.00 Up to Up to 700 1000 1700 8 Mbps 1 Mbps Web Premier Rs.58,000.00 Up to Up to 1250 1750 3000 8 Mbps 1 Mbps
SRI LANKA : Investment Guide to Sri Lanka 2018
D) Hos ng Services - Services & Pricing
1. Shared Web Hos ng
Monthly Rental Start up fee Disk DNS Plesk No. of FTP Web Space Hosting Panel Email users builders (optional) Web Windows : Rs.250.00 300MB Free Free 1 2 Rs.150 Active Rs.400.00 Linux : Rs.300.00 Web Windows : Rs.500.00 750 MB Free Free 3 3 Rs.150 Live Rs.700.00 Linux : Rs.600.00 Web Windows : Rs.500.00 1000MB Free Free 5 5 Rs.150 Ultima Rs.900.00 Linux : Rs.750.00
Note: Above charges are exclusive of taxes. Relevant taxes will be applicable at the me of purchase.
2. DNS Hos ng
Primary DNS hos ng - Monthly Rental - Rs.500.00
Mail Server Solu ons
Monthly Rental Startup Fee Virtual Mail server Rs. 2,000.00 Rs. 3,000.00
Note : ·Mon thly rental is inclusive of DNS rental. ·Cus tomer needs to obtain Email only or Internet & Email package to implement virtual mail server. ·Abov e charges are exclusive of taxes. Relevant taxes will be applicable at the me of purchase. (For more informa on refer : h p://www.slt.lk)
1 SRI LANKA : Investment Guide to Sri Lanka 2018
Appendix 3 – BOI Fees and Charges
Applica on/Agreement Processing Charges
# Application/Agreement Processing Charges US$ Section 17 1 Investment application processing 250 2 Agreement Processing Fees - Strategic Development Project 3,500 - For Other Projects 2,000 3 Supplementary Agreements 500 Section 16 4 Investment application processing fees (Sec. 16) 300 5 Processing Fee for perusal of Articles of Association of Company 150 Non BOI Enterprises 6 Lease Agreement Processing Fee for non BOI companies Rs. 10,000 All charges are liable to VAT 15%. (All charges can be paid on the rupee equivalent as per the prevailing exchange rate)
Annual Fees # Annual Fees US$ (Per Annum) Section 17 1 Annual Fees 2,500 a. Normal Projects b. Hotel, Hospital, Utilities, Tourism sector Project and any other Infrastructure Project - During Project Implementation Period i. Project less than US$ 3 Million 3,500 ii. Project between not less than US$ 3 Million and not more than US$ 10 Million 6,600 iii. Project more than US$ 10 Million 8,800 iv. Strategic Development Project 16,500
- Thereafter during Tax holidays & Concessionary Tax Period
v. Project less than US$ 3 Million 2,300 vi. Project between not less than US$ 3 Million and not more than US$ 10 Million 5,500 vii. Project more than US$ 10 Million 7,700 viii. Strategic Development Project 11,000
- After Tax holidays & Concessionary Tax Period /After Project 1,000 Implementation Period c. Agriculture Projects 850 d. Coir based Industries and Handicraft Projects 1,100
Section 16 2 Annual License Fee 350
SRI LANKA : Investment Guide to Sri Lanka 2018
Environment Protec on Licencing Charges
Licence Fee (excluding VAT)
Ac vi es in List A - Equivalent of Rs. 7,500 Ac vi es in List B - Equivalent of Rs. 6,000 Ac vi es in List C - Equivalent of Rs. 4,000
Inspec on Fee (excluding VAT)
Ac vi es in List A - Equivalent of Rs. 4,900 Ac vi es in List B - Equivalent of Rs. 4,125 Ac vi es in List C - Equivalent of Rs. 3,100
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Appendix 4 – Line Agency Contacts
Board of Investment (BOI) Coast Conserva on Department Department of Inland Revenue Level 24 & 26 West Tower, 4th Floor, New Secretariat Building, No. 81, Sir Chiththampalam A. Gardinar World Trade Center, Echelon Square, Maligawa a, Colombo 10, Sri Lanka Mawatha, Colombo 02, Sri Lanka Colombo 01, Sri Lanka Tel: +94 11 244 9754 Tel : +94 11 3009355, 3009257 Tel : +94 11 2434403 -5 Fax: +94 11 243 8005 Fax : +94 11 2337777 Fax : +94 11 2447994 coastal@fisheries.gov.lk www.ird.gov.lk [email protected] www.coastal.gov.lk www.investsrilanka.com Informa on & Telecommunica on Technology Department of Archeology Agency Colombo Municipal Council Sir Marcus Fernando Mawatha, 160/24, Kirimandala Mawatha, Town Hall, Colombo 07, Colombo 07, Sri Lanka Colombo 05, Sri Lanka Sri Lanka Tel: +94 11 2692840, 2692841 Tel: +94 11 2369100 Tel : +94 11 2684291, 2684290 Fax: +94 11 2696250 Fax: +94 11 2369091 Fax : +94 11 2684290 [email protected] [email protected] [email protected] www.archaeology.gov.lk www.icta.lk www.cmc.lk Coconut Development Authority (CDA) Department of Irriga on Central Environmental Authority (CEA) 54, Nawala Road, Narahenpita, 230, Bauddhaloka Mw. P.O.Box 1138, 104, Denzil Kobbekaduwa Mawatha, Colombo 05, Sri Lanka Colombo 07, Sri Lanka Ba aramulla, Sri Lanka Tel: +94 11 2502502-4, 2368284-5 Tel: +94 11 2581162, 2584984 Tel: +94 11 7877277-9 Fax: +94 11 2508729 Fax:+94 11 2505890 Fax: +94 11 2872608 [email protected] dgirriga [email protected] [email protected] www.cda.lk www.irriga on.gov.lk www.cea.lk Department of Commerce Ministry of Agriculture (MOA) Condominium Management Authority 4th Floor, "Rakshana Mandiraya" 21 Vauxhall 288, Sri Jayawardenepura Mawatha, Sir Chithampalam A Gardiner Mawatha, Street, Colombo 02, Sri Lanka Rajagiriya, Sri Lanka Na onal Housing Department Building, Tel : +94 11 2329733/2346114 Tel: +94 11 2869553, 2872093, 2872097 1st Floor, Colombo-02, Sri Lanka Fax : +94 11 2430233/2382490 Fax : +94 11 2868910 Tel:+94 11 2447432 , 2447429 [email protected] [email protected] Fax:+94 11 2423606 www.doc.gov.lk www.agrimin.gov.lk www.condominium.lk Department of Forest Conserva on Department of Railway Ceylon Electricity Board (CEB) 82, "Sampathpaya", Rajamalwa a Road, P.o. Box 355, Colombo, Sri Lanka 50, Sir Chi ampalam A Gardiner Mawatha, Ba aramulla, Sri Lanka Tel: +94 11 2421281 Colombo 02, Sri Lanka Tel: +94 11 2866631-2 Fax: +94 11 2446490 Tel: +94 11 2324471 Fax: +94 11 2866633 [email protected] Fax:+94 11 2329725 www.forestdept.gov.lk www.railway.gov.lk Website: www.ceb.lk Geological Survey & Mines Bureau (GSMB) Ministry of Defense (MOD) Department of Agriculture (DOA) 569, Epitamulla Road, Pitako e, Sri Lanka. 15/5, Baladaksha Mawatha, Colombo 03, Sri P.O. Box 1 Peradeniya, Sri Lanka. Tel:+94 11 2886289 / 2886290 Lanka Tel:+94 81 2388331-4 Fax: +94 11 2886273 Tel:+94 11 2430860/69 Fax: +94 81 2388333 [email protected] Fax: +94 11 2441 481 [email protected] www.gsmb.gov.lk [email protected] www.agridept.gov.lk www.defence.lk Department of Immigra on and Emigra on Civil Avia on Authority of Sri Lanka (CAA) "Suhurupaya", Sri Subhuthipura Road, Department of the Registrar of Companies 152/1, Minuwangoda Road (Opposite Radar Ba a ramulla, Sri Lanka 400 D R Wijewardena Mawatha Colombo 10, Sri Tower), Katunayake, Sri Lanka Tel : 94-11-5329000 Hun ng Line Lanka Tel: +94-11-2304632 Fax : 94-11-2885358 Tel: +94 11 2689209 Fax: 94-11-2304644 controller@immigra on.gov.lk Fax: +94 11 2689211 [email protected] www.immigra on.gov.lk [email protected] www.caa.lk www.drc.gov.lk Import and Export Control Department Department of Animal Produc on and Health No: 75 1/3, 1st Floor, Hemas Building, Ministry of Mahaweli Development & (DAPH) York Street, Colombo 01, Sri Lanka. Environment P.O. Box 13, Gatabe, Tel:+94 11 2326774 "Sobadam Piyasa",416/C/1, Robert Peradeniya, Sri Lanka Fax: +94 11 2328486 Gunawardana Mawatha, Ba aramulla. Sri Lanka. Tel: +94 81 2388432, 2388189, 2388337, dep [email protected], [email protected] Tel: +94-11-2034100 Fax: +94 81 2388619 www.imexport.gov.lk [email protected] Fax: +94 11 2865452 www.daph.gov.lk [email protected] www.environmentmin.gov.lk
* Informa on provided is correct at the me of going to print. For further details please refer of website of the relevant agencies SRI LANKA : Investment Guide to Sri Lanka 2018
Department of Wildlife Conserva on Ministry of Livestock & Rural Community Sri Lanka Sustainable Energy Authority 811A, Jayanthipura, Development 3G-17BMICH, Bauddhaloka Mawatha, Ba aramulla, Sri Lanka. No. 45, St. Michael's Road, Colombo 07, Sri Lanka Tel : +94 11 2 888 585 Colombo 03. Sri Lanka Tel: +94 11 2677445 Fax: +94 11 2 883 3555 Tel : +94 11 2541369, +94 11 2338278 Fax: +94 11 2682534 [email protected] Fax:+94 11 2328117 [email protected] www.dwc.gov.lk [email protected] www.energy.gov.lk www.livestock.gov.lk Ministry of Fisheries & Aqua c Resources State Timber Corpora on (STC) Development Na onal Water Supply & Drainage Board 82, "Sampathpaya" Rajamalwa a Road, , New Secretariat, Maligawa a, (NWSDB) Ba aramulla, Sri Lanka Colombo 10, Sri Lanka Galle Road, Ratmalana, Sri Lanka Tel: +94 11 2866601 Tel:+94 11 2446183-5 Tel: +94 11 2638999, 2611589 Fax: +94 11 2866623 Fax: +94 11 2541184 Fax: +94 11 2636449 [email protected] secretary@fisheries.gov.lk Website: [email protected] www. mco.lk www.fisheries.gov.lk www.waterboard.lk Sri Lanka Standards Ins tu on Ministry of Health, Nutri on & Indigenous Ministry of Finance & Mass Media 17, Victoria Place, Elvi gala Mw., Medicine 163, Asi Disi Medura, Kirillapone Mawatha Colombo 08, Sri Lanka Private Sector Health Development 385, Polhengoda, Colombo 05, Sri Lanka Tel: +94 11 2671567-72 "Suwasiripaya", Rev. Baddegama Wimalawansa Tel: +94 11 2512321, 2513498 Thero Mawatha, Colombo 10, Sri Lanka Fax: +94 11 2671579 Fax: +94 11 2514352 [email protected] Tel: +94 11 2675011/2694033/2675449 www.media.gov.lk Fax: +94 112694227 www.slsi.lk [email protected] Public U li es Commission of Sri Lanka (PUCSL) www.health.gov.lk Telecommunica on Regulatory Commission 6th Floor, BOC Merchant Tower (TRC) St. Michael's Road, Colombo 3, Sri Lanka 276, Elvi gala Mawatha, Ministry of Planta on Industries (MPI) Tel:+94 11 2392607/8 Colombo 08, Sri Lanka C - Wing, 11th Floor, Fax:+94 11 2392641 Tel: +94 11 2689345 Sethsiripaya 2nd Stage, [email protected] Fax: +94 11 2689341 Ba aramulla, Sri Lanka Website : www.pucsl.gov.lk [email protected] Tel: +94 112 186 160, 2187 242/3 www.trc.gov.lk Fax: +94 112 186 076 Ministry of Petroleum Resources Development info@planta onindustries.gov.lk 80, Sir Ernest de Silva Mawatha, Sri Lanka Tea Board (SLTB) www.planta onindustries.gov.lk Colombo 07, Sri Lanka 574, Galle Road, Tel: + 94 11 2564969/ 2370033 Colombo 03, Sri Lanka Ministry of Higher Educa on & Highways Fax: +94 11 2372115 Tel: +94 11 2587814, 2582236, 2583687 18, Ward Place, Colombo 7, Sri Lanka. [email protected] Fax: +94 11 2589132 Tel:+94 11 2694486, 2697133, 2697721, www.petroleummin.gov.lk [email protected] 2691378 Fax : +94 11 2697239 www.pureceylontea.com Sri Lanka Customs [email protected] 40, Main Street, Colombo 11, www.mohe.gov.lk Ter ary & Voca onal Educa on Commission Sri Lanka. (TVEC) Tel: +94112445147 'Nipunatha Piyasa', 354/2, Elvi gala Mvy., Ministry of Power and Renewable Energy Fax: +94112446364 Narahenpita, Sri Lanka 72, Ananda Coomaraswamy Mw., E-mail:[email protected] Tel: +94 11 5849291 Colombo 07, Sri Lanka www.custams.gov.lk Fax: 94(0) 112555007 Tel: +94 11 2574922 [email protected] Fax: +94 11 2574743 Sri Lanka Land Reclama on and Deployment www.tvec.gov.lk Email: [email protected] Corpora on (LRDC) www.powermin.gov.lk P.O.Box 56, No.03, Sri Jayawardenapura Mw, Sri Lanka Telecom (SLT) Welikada, Rajagiriya, Sri Lanka Lotus Road, P.O.Box 503, Ministry of Health, Nutri on & Indigenous Tel: +94 112 867369, 0094 112 868002 Medicine Colombo 01, Sri Lanka Fax: +94 112 862457 Tel: +94-11- 2021000 4 th Floor, No.464,T.B Jaya Mawatha, Colomobo [email protected] 10. Fax: +94-11-2440000 www.landreclama on.lk Tel: +94 11 2 676376, 2676311 [email protected] Fax : +94 11 2 676377 www.slt.lk Sri Lanka Tourism Development Authority Ministryofi[email protected] (SLTDA) www.indigenousmedimini.gov.lk Urban Development Authority (UDA) One Stop Unit (OSU) 80, Galle Road, 6th & 7th Floor, Sethsiripaya, Colombo 03, Sri Lanka Ba aramulla, Sri Lanka Na onal Gem & Jewellery Authority Tel: +94 11 2426900/ 2437055/59/60 No.25, Galle Face Terrace, Tel: +94 11 2875916-8 Fax : +94 112 440001 / 2426984 Fax: +94 11 2873637 Colombo 03, Sri Lanka [email protected] Tel : 094 11 2390645 -8 (Gen), [email protected] www.sltda.lk www.uda.lk 094 11 2390649 (Dir) Fax : 094 11 2390649 [email protected] www.ngja.gov.lk
* Informa on provided is correct at the me of going to print. For further details please refer of website of the relevant agencies
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Board ofInvestment ofSriLanka
Designed by Chanaka Kumanayaka - BOI Media Dept.