Sri Lanka Welcomes You – Invest in a Future That Grows With You
Approval process milestones
1
Application Submission for BOI Approval
2
Site Approval
3
Incorporation of the Company
4
Signing of Agreement
5
Commence Implementation
6
Commence Commercial Operation
BOI Zone Map
Where We Locate ?
Setting Up
Registering your business
Step 1
Step 2
Info
400, D.R.Wijewardena Mawatha,
Colombo 10,
Sri Lanka
Tel: 0094-11-2689208 , 0094-11-2689209
Fax: 0094-11-2689211
E-mail: info@drc.gov.lk
Website: www.drc.gov.lk
BOI Act
Investment Incentives
EXEMPT
Corporate Income TaxEnhanced Capital Allowance
Enhanced capital allowances are granted to a person (an individual or entity) in addition to the normal depreciation allowance, as shown below. This facility is available for persons who make new investments and expansions of existing projects in Sri Lanka.
| Total Investment Made (US$ Mn.) | ECA – Northern Province | ECA – Other Regions | Loss Deduction Period (Years) |
|---|---|---|---|
| > 3 and ≤ 100 | 200% | 100% | 10 |
| > 100 and ≤ 1,000 | 200% | 150% | 10 |
| > 1,000 | 200% | 150% | 25 |
Depreciable Assets
- Class 1: Computers and data handling equipment with peripherals
- Class 2: Vehicles, construction equipment, manufacturing machinery
- Class 3: Aircraft, ships, railway cars, utility equipment
- Class 4: Buildings and permanent structures
- Class 5: Intangible assets and goodwill
- Class 6: Milking machines and dairy technology
Expatriate Tax Exemption During ECA Period
Employment income of expatriate employees qualifies for 0% tax rate when:
- Company invests >$250M in depreciable assets using ECA allowance, or
- For first 5 years of commercial operations (whichever is longer)
Maximum of 20 expatriate employees eligible for this exemption
Investment Threshold
Investment Threshold
Qualifying Criteria – Minimum Investment (USD)
| 1.1 | Manufacture of non-traditional goods* for export including deemed exports | 500,000 |
| 1.2 | Manufacturing of non-traditional goods using advanced technology (Local Market) | 5,000,000 |
| 1.3 | Large scale manufacturing of non-traditional goods as approved by the Board (Local Market) | 5,000,000 |
| 2.1 | Information Technology (IT) and/or IT enabled services** | 150,000 |
| 2.2 | Information Technology (IT) and/or IT enabled services (Local Market) | 150,000 |
| 2.3 | BPO Industry | 150,000 |
| 2.4 | Tourism & Leisure | 500,000 |
| 2.5 | Utilities (Power generation, water supply, waste management, etc.) | 500,000 |
| 2.6 | Export-oriented services*** | 500,000 |
| 2.7 | Warehousing, logistics and supply chain management and cold storage | 500,000 |
| 2.8 | Training Institutes | 150,000 |
| 2.9 | Research & Development**** | 150,000 |
| 2.10 | Public service projects as approved by the Board local market | 5,000,000 |
| 2.11 | Regional Operating Headquarters | 250,000 |
| 2.12 | Export Trading House Exporting entirely of locally procured manufactured products or re-exporting the entirety of imported products. Location should be within the EPZ or an approved customs bonded warehouse located outside EPZ | Annual Turnover |
| 3.1 | Agriculture and Agro Processing (Export Market) (Raw materials for the product to be sourced locally) | 150,000 |
| 3.2 | Agriculture and Agro Processing (Local Market) (Raw materials for the product to be sourced locally) | 150,000 |
| 4.1 | Small Scale Infrastructure Projects: (a) Construction and operation of Hospital (b) Any other infrastructure construction activity as approved by the Board | 500,000 5,000,000 |
| 4.2 | Large Scale Infrastructure Projects as approved by the Board – Power generation, transmission & distribution – Development of Highways, Sea Ports, Air Ports, Public transport, Railways, Water services – Establishment of Industrial Estates including Develop and management of Industrial Estates/ Special Economic Zones – Any other Infrastructure projects approved by the Board | 3,000,000 12,500,000 |
* Non-traditional goods include all goods other than Black tea in bulk, Crepe rubber, Sheet rubber, Scrap rubber, Coconut oil, Desiccated coconut (other than Desiccated coconut manufactured using continuous scale automated process technology and marketed with a quality guarantee), Copra, Fresh coconuts, coconut fiber or such other commodity as may be determined by the Board.
** IT enabled services includes all call centers or contact centers, transcription (data entry) centers, hosting centers, e-governance software engineering, and other related IT services as approved by the Board.
*** Export-oriented Services includes: Garment washing and finishing plants; Embroidery services; Ship repairing and ship breaking; Textile dyeing and finishing plant; Textile printing; Testing of fabric; Computer-aided design for textile and other industries; Design and production of prototypes of items; Air cargo services; International passenger services; Repacking of containers; and Vacuum packaging services.
**** Research & Development means any systematic or intensive study carried out in the field of science or technology with the object of using the result of the study for the production or improvement of materials, devices, products, procedure or process but not include: Quality control of products or routine testing of materials, products or process; Research in the social sciences or humanities; Market research or sales promotion; Efficiency surveys or management studies; Research in connection with mineral prospecting or exploitation; Routine data collection; Animal husbandry and rearing and/or processing of fish but excluding processing of black tea in bulk.
BOI Charges
Application/Agreement Processing Charges
Application/Agreement Processing Charges
| Category | Description | Amount (US$) |
|---|---|---|
| Section 17 | ||
| Investment Application Processing Fee | 400.00 | |
| Agreement Processing Fees | ||
| - For Normal Sec. 17 Projects | 2,500.00 | |
| - Strategic Development Projects | 4,500.00 | |
| Supplementary Agreements | ||
| - For Normal Sec. 17 Projects | 700.00 | |
| - Strategic Development Projects | 4,000.00 | |
| Extension of Project Implementation Period | ||
| - More than/for One (01) Year (Per Month) | 75.00 | |
| - Less than One (01) Year (Per Month) | 100.00 | |
| Section 16 | ||
| Investment Application Processing Fee | 400.00 | |
| Processing Fee for Perusal of Articles of Association of Companies | 200.00 | |
| Agreement Processing Fees | 100.00 | |
| Non BOI Companies | ||
| Agreement Processing Fee - Industrial | 700.00 | |
| Agreement Processing Fee - Non-Industrial | 65.00 | |
| Planning Approvals | ||
| - Planning Approvals - Original | 200.00 | |
| - Planning Approvals - Revision | 100.00 | |
*All charges are liable to Value Added Tax (VAT)
*(All charges can be paid on the rupee equivalent as per the prevailing exchange rate)
Land Rent
| Export Processing Zones and Industrial Parks | Non-Refundable Land Premium (US$) | Ground Rent Per Annum (US$) |
|---|---|---|
| 1. Katunayaka EPZ | 150,000 | 12,500 |
| 2. Biyagama EPZ | 100,000 | 10,000 |
| 3. Koggala EPZ | 35,000 | 6,225 |
| 4. Malwatta EPP | 37,500 | 5,650 |
| 5. Seethawaka EPZ | 110,000 | 5,650 |
| 6. Horana EPZ | 45,100 | 5,650 |
| 7. Mirigama EPZ | 35,200 | 5,650 |
| 8. Wathupitiwala EPZ | 50,000 | 5,650 |
| 9. Kandy IP | 15,000 | 5,650 |
| 10. Mawathagama EPZ | 14,000 | 5,650 |
| 11. Polgahawela EPZ | 30,000 | 5,650 |
| 12. Eravur EPZ (Textile Manufacturing Zone) | 35,000 | 5,000 |
| 13. Mirijjawila EPZ | 20,000 | 4,660 |
| 14. Wagawatta EPZ | 40,000 | 4,660 |
| 15. Bingiriya EPZ | 10,000 | 4,235 |
| 16. Arabokka EPZ (Pharma Manufacturing Zone) | 20,000 | 4,660 |
Land Reservation Fee: 10% of Land Premium
Lease Period: 30 years
All charges are liable to Value Added Tax (VAT)
EPZ = Export Processing Zone
EPP = Export Processing Park
IP = Industrial Park
Annual Fees applicable for Enterprises located outside BOI EPZS / EPP / IPs / IZ US$ (Per Annum)
| Category | Fee Description | Amount (US$) |
|---|---|---|
| 1 | Large Enterprises | 2,500 |
| 2 | Medium Enterprises | 1,500 |
| 3 | Small Enterprises | 1,000 |
| 4 | Micro Enterprises | 500 |
| 5 | Strategic Development Projects | 5,000 |
| 6 | Supplementary Agreements Processing Fee | 700 |
*All fees are subject to annual revision
*Payable by 31st March of each financial year
All charges are liable to Value Added Tax (VAT)
Environment Protection Licencing Charges
| No. | License Type | Application Fee | Processing Fee | Annual License Fee |
|---|---|---|---|---|
| 1 | Category A (Large Scale) | 500 | 2,500 | 5,000 |
| 2 | Category B (Medium Scale) | 300 | 1,500 | 3,000 |
| 3 | Category C (Small Scale) | 200 | 1,000 | 2,000 |
| 4 | Category D (Micro Scale) | 100 | 500 | 1,000 |
| 5 | Environmental Impact Assessment | 1,000 | 5,000 | - |
| 6 | License Renewal | 200 | 500 | Same as Annual |
| 7 | License Amendment | 150 | 300 | - |
License Validity:
- Categories A & B: 3 Years
- Categories C & D: 5 Years
Payment Terms:
- Application and Processing Fees payable with submission
- Annual License Fee payable in advance
All charges are liable to Value Added Tax (VAT)
Late renewal penalty: 25% of annual fee per month
BOI Projects Categorizations
Projects operating under Sec.17 of the BOI Law
Under Sec.17 of the BOI Law, BOI is empowered to approve projects and enter into agreements with enterprises granting exemptions from laws such as Customs Ordinance, subject to fulfillment of the investment threshold or any other specified requirement.
Sec. 17 projects that meet the minimum investment threshold of US$ 3 Mn upwards, can enjoy special incentives in the form of enhanced capital allowances under the Inland Revenue Act No 24 of 2017. Projects with investments of over USD 50 Mn will be granted PAL and CESS exemptions during the Project Implementation period.
This can either be a 100% foreign investment or a joint venture investment with local collaboration. Proposed foreign investments should be effected from funds remitted through an Inward Investment Account (IIA).
Projects operating under Sec.16 of the BOI Law (under Normal Law of the Country)
- Entry of foreign investment
- Set up a new company with foreign shareholding
- Transfer/issue new shares in an existing non BOI company to foreign investors
- Issuing visa recommendations.
The minimum investment threshold for Section 16 is US$ 250,000. This can either be a 100% foreign investment or a joint venture investment with local collaboration. Proposed foreign investments should be effected from funds remitted through an Inward Investment Account (IIA).
Related Applications
Projects With Concession Approved Under Sec 17
Application For Approval an Investment - IT Sector
Applications for Sector Wise Site Approval
Projects Without Concession Approved Under Sec 16
Find Business Partner
Partnership Finder Web
An Interactive Platform to Find Your Next “Big Break”
Click to find partner
Entry and stay
Apply Visa Online
Compliances for processing of Visa
The Enterprises are advised to submit the following latest payment/documents to BOI for the processing of visas without any interruption.
Enterprises Approved under Sec. 17 of BOI Law
- Annual Fee
- Audited Financial Statements
- Bi-annual Report
- Employment
- COC (if applicable)
- EPL (if applicable)
Enterprises Approved under Sec. 16 of BOI Law
- Annual Fee
- Audited Financial Statements
- Employment
Please contact Monitoring Department or Visa Unit of BOI for any further clarification.
Supportive Information
Required Files
The company should submit the following documents along with the visa application in three sets to the BOI when applying for visas for expatriates:- Certified copy of BOI certificate (certified copy of the Letter of Approval for Sec. 16 projects)
- Certified copy of BOI Agreement
- Certified copy of Articles of Association
- Certified copy of Form 1 (Details of directors)
- Certified copy of Form 2A (Certificate of Incorporation)
- Company request
Long-term Residence Visa
Invest, Live and Study in Sri Lanka
Scan to download the Brochure