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.
- Project can be 100% foreign owned. Joint ventures with local companies are also welcome.
- Shares can be freely transferred within and out side Sri Lanka.
- Dividends can be remitted without tax or exchange control restrictions.
- Capital and proceeds of liquidation are repatriable without tax or exchange control restrictions.
- 100% tax exemption up to 5 – 15 years.
- A company can qualify for 100 exemptions from corporate income tax for up to 10years, depending on project characteristics.
- After the tax exemption period, concessionary taxation is available for up to 15years.
- Other tax exemptions.
- No tax or royalty remittances during the exemption period.
- Tax exemption on earnings of expatriate staff for duration of tax holiday.
- 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.