IntroductionSetting up in Sri Lanka - How To Set Up?
Section 2: Understanding the Process
The BOI has significantly streamlined the Investment Approval Process to make it easy for you. The flowchart below shows an overview of the entire process.
Investment Approval Process
For specifics of the BOI processes that support your application, please see Board of Investment Approval Process.
Detailed Steps- Investment Approval Process
1. Submit Application
To start your project you need to submit an application and accompanying paperwork.
Contact the Investor Relations Center of the BOI (IRC) to get an application form and for assistance with the application process. You may also download the application form from the BOI Website.
Review eligibility criteria, guidelines and supporting documentation required as stated at the back of the application. For help, contact the Investor Relations Center of the BOI. Gather necessary supporting documents.
Complete the application form.
Submit your completed application, together with all necessary attachments, to the Sector Teams of the Investor Relations Center.
| Quick Look Action Items |
|
What You Need:
|
|
What to Submit:
|
|
Where to Submit: Investor Relations Center |
2. Application Evaluation
When your application is received, the BOI will:
Check whether the Project satisfies the requirements of the thrust sectors (see Sector listing) identified by the BOI. If required the BOI will refer the project to the relevant Line Agency for observations – for example: Tourism Development Authority for hotel projects see Line Agencies below.
Evaluate your Project and, if all is in order, accept your Application.
If everything is in order, you will need to pay the application fee.
Otherwise, if your application is incomplete or requires any changes you will be requested to update and resubmit.
3. Approval Process
If the BOI accepts your application, you'll receive a Letter of Acknowledgement as well as, Approval to Incorporate your company; this process usually takes about 1 to 2 days. Commonly, the application is accepted, and the Letter of Acknowledgement is given if all necessary paperwork is submitted and:
The economic activity in which investment is proposed is neither reserved nor restricted.
The application is for a regulated activity but the application meets the conditions of such activities.
You will be assigned a Project Officer to assist and guide you through the Application Approval and Project implementation process.
Your application is then submitted to the BOI board for approval under Section 17.
If the Board approves your application, you will be notified, and you can proceed to finalizing your agreement; see next section.
If the Board declines your application under Section 17 you may request approval under Section 16 (provided the project meets the published guidelines for Section 16 projects) from the appropriate Sector Head.
The Sector Head will approve your application if it meets the current guidelines for Section 16 projects.
If your application is declined under both Section 16 and Section 17 you will need to resubmit a new and modified application if you wish to obtain approval for your Project.
| Quick Look Action Items |
|
What to Submit:
|
4. Finalizing Your Agreement
Once you receive BOI (Board or Sector Head) approval, you will receive a Formal Letter of Approval
- Environmental clearance
- Approval from the Ministry that oversees the sector of proposed investment and any relevant Line Agencies
- Receiving site approval, and land allocation and clearance, from the Engineering Approval & Special Projects Department of BOI
- Any other approvals that may be required
Complete the incorporation of your company.
If your Project was approved under Section 17 then you will receive and need to sign an agreement with the BOI; section 16 projects are governed by the normal laws of Sri Lanka and not the BOI Laws so you will not be required to sign an agreement with the BOI
Once all required clearances are obtained , you will receive a Draft Agreement from the BOI for review.
You will need to review this agreement as it states all the eligibility criteria as well as incentives and concessions being offered to your Project.
If the agreement is in order sign the agreement.
Pay the annual fee or ground rent for the first year and any lease premium due as applicable.
Work with your Project Officer to take immediate action to get clearances, from all relevant ministries and agencies and to satisfy any other conditions.
| Quick Look Action Items |
|
What to Submit:
|
5. Project Implementation
After signing an agreement with the BOI (if required) contact your Project Officer to facilitate getting:
Registrations, such as for (A) Income Tax, Value Added Tax (VAT) and Tax Identification Number (TIN); (B) Sri Lanka Customs and (C) BOI Investor Services (only for section 17 projects).
Provisions for infrastructure service facilities
Building plan approval subject to local authority approval
(D) Certificate of Conformity (COC), for the factory premises, once you are ready to commence commercial operations.
After you receive your COC, you're permitted to commence commercial operations.
Note: Investors are advised not to import any items free of customs duty prior to:
Signing of the Agreement with the BOI
Obtaining BOI approval for import of project related items as well as construction materials
All imports should be consigned directly to the BOI enterprise; see the negative list on the BOI Website for those items you are not permitted to import free of Customs Duty.
| Quick Look Action Items |
|
What to Submit:
|