Setting up in Sri Lanka

Investment Under 'Normal Laws' - (Section 16)

Approval under Section 16 of the BOI Act permits foreign investment entry to operate only under the ‘Normal Laws’ of the country; that is, for such enterprises, the provisions of the Inland Revenue, Control Laws shall apply.

Tax Incentives

CATOGORY INwCENTIVES
i) Undertaking for Fishing (Section 16A)
(This includes any cleaning, sizing, sorting, grading, chilling, dehydrating, packing, cutting or canning of fish in preparation of such produce for the market.)		 Exempt from income tax for 5 years commencing from April 1, 2011.
ii) Producing Agriculture seeds or planting materials or primary processing of such seeds or materials (Section 16B)
(Primary processing means any cleaning, sizing, sorting, grading, chilling, dehydrating, cutting, canning or packaging for the purpose of preparation of such produce for the market.)		 Exempt from income tax for 5 years commencing from April 1, 2011.

Investment under "Normal Law" of the country for any person or partnership Under Section 16C of Inland Revenue (Amended) Act no 22 of 2011

CATOGORY QUALIFY CRITERIA INCENTIVES
The Manufacture of any article other than any liquor or tobacco product (Section 16C)
  1. Investing more than Rs 50 Mn. in the acquisition of fixed assets after November. 22, 2010 but before march 31, 2012.
  2. New undertaking and carried on or after April 1, 2011 and commences commercial operations on or after April 1, 2011
 Exempt from income tax for a period of 3years.

The minimum investment required to apply for Section 16 status under the BOI Law is US$ 250,000 subject to (i). Areas Reserved for Sri Lankans, (ii). Areas Subject to Automatic or Conditional Approval and (iii). Regulated Areas.