Board of Investment of Sri Lanka is empowered to approve projects under following categories.
Projects are approved under section 16 of BOI Law, where the entry of foreign investment is permitted without any fiscal concessions. These projects are governed under Normal laws of the country and are subjected to Inland Revenue Laws, Custom Laws and exchange control regulations.These approvals are granted;
At present the minimum investment requirement to qualify for the section 16 projects is US$ 250,000. This can be either 100% foreign investment or a joint venture investment with a local collaboration.
Foreigner has to remit a minimum of US$ 1 Mn if they are to undertake trading activity
The proposed foreign investment should be effected from funds remitted through a Securities Investment Account (SIA) as indicated in the Gazette Extraordinary No.1232/14 of 19th April 2002 published by the Controller of Exchange.
Under Sec.17 of the BOI Law, it is empowered to approve projects and enter into agreements with enterprises and to grant exemptions from laws such as Inland Revenue, Exchange Control and Customs, subject to fulfillment of the investment threshold or any other specified requirement.
Tax exemptions are considered under the provisions of Strategic Development Projects Act No 14 of 2008 and its amendments for special projects which are in the nationalinterest, likely to bring economic and social benefits to the country and capable of changing the landscapeof the country, primarily through
The SDP Act covers full or partial exemptions from following legislation based on the nature of the investment on a case by case basis.
When receiving incentives and other benefits eligible for investors, there is no discrimination between local and foreign investors if they invest in Sri Lanka under Section 17 of BOI Law or Strategic Development Projects Act.