The government, BOI and various other institutions are focused on promoting Sri Lanka as an attractive FDI destination, including export-oriented activities.
In its Annual Report 2016, the CBSL emphasisesthatconsistent domestic policies aimed at improving Sri Lanka’s competitiveness, strong institutional support and targeted promotional campaigns highlighting Sri Lanka’s potential as an attractive FDI destination, are essential in creating an enabling environment for FDI.
Broad Investment Framework
- Transparent investment laws to foster FDI with safety of the investments guaranteed under Article 157 of the island’s constitution
- Total foreign ownership is permitted across almost all areas of the economy with no restrictions on repatriation of earnings, fees, capital, and on forex transactions relating to current account payments.
- Vibrant and proactive private sector, well suited to partner in joint ventures with foreign investors, even though the latter are allowed 100% ownership of an investment in this sector.
- Concessions granted under an agreement with the BOI for qualifying investment projects, relative to the size of the FDI and employment generation capacity.
- Existence of Bilateral Investment Protection Agreements (IPA) with 28 countries and double taxation avoidance agreements with 38 countries.
- Founder member of the Multilateral Investment Guarantee Agency (MIGA), the investment guarantee arm of the World Bank which safeguards against expropriation and non-commercial risks.
- A firm proponent of international laws and UN's rights of labour, children and women. Sri Lanka possesses an edge over its regional competitors with stringent adherence to child labour laws and endorsement of gender equality.