Foreign ownership is encouraged for investments in almost all sectors of the economy. Only a few areas are regulated. Investors are permitted to repatriate 100% their profits and exempted from most of the exchange control regulations. They can also enjoy preferential tax benefits and constitutional guarantees on their investment.

  • No restrictions on equity ownership.
    1. Project can be 100% foreign owned. Joint ventures with local companies are also welcome.
    2. Shares can be freely transferred within and out side Sri Lanka.
    3. Dividends can be remitted without tax or exchange control restrictions.
    4. Capital and proceeds of liquidation are repatriable without tax or exchange control restrictions.
  • 100% tax exemption up to 5 – 15 years.
    1. A company can qualify for 100 exemptions from corporate income tax for up to 10years, depending on project characteristics.
    2. After the tax exemption period, concessionary taxation is available for up to 15years.
  • Other tax exemptions.
    1. No tax or royalty remittances during the exemption period.
    2. Tax exemption on earnings of expatriate staff for duration of tax holiday.
    3. Double taxation relief. Agreement granting double taxation relief has been entered with the Russian Federation.
  • Duty free exports and imports.

Import of construction materials, plant, equipment and raw material and export of the final product is free of duty.