Investing in Sri Lanka through the Board of Investment of Sri Lanka (BOI) enables investors to benefit from several fiscal and non-fiscal incentives depending on the nature and merits of the investment project. These incentives range from exemptions under the Inland Revenue law, Port & Airport Development Levy Act, Value Added Tax Act and Strategic Development Project Act to BOI provided duty free facilitation and exchange control exemptions.

Accordingly, any BOI approved projects under Sections 16 and 17 of the BOI Law can obtain applicable incentives dependent on meeting the required criteria. Moreover, the Inland Revenue Act No. 24 of 2017 provides a fiscal-based incentive regime granting reduced tax rates (for specific sectors) and enhanced capital allowances based on capital investments made by investors effective from 1st April 2018.

Non-fiscal incentives include 100% foreign ownership except for businesses undertaking pawn broking, retail trade (conditions apply), and coastal fishing as well as repatriation of earnings where all income and proceeds on sale of the investment can be repatriated through an Inward Investment Account opened by the Investor.

Strong Economic Growth

National Output (2017)

GDP (Current Market Price) : USD 87.2 bn
Per Capita GDP : USD 4,065
Real GDP Growth : 3.1%

GDP Distribution (2017)

Agriculture : 6.9%
Industry : 26.8%
Services : 56.8%
Taxes Less Subsidies on Products : 9.5%


Demography External Trade Inflation External Finance
Labour Force : 8.2 Mn

Unemployment Rate (% of Labour

Force) : 4.2

Population : 21.4 Mn

Exports : USD 11,360 Mn

Imports : USD 20,980 Mn

Trade Balance : USD (9,619) Mn

CCPI Annual Average : 6.6 % FDI : USD 1.7 bn (2017)

FDI % of GDP : 2% (2017)


Key Trade Partners of Sri Lanka


Major Exports and Imports

Foreign Direct Investments