Why Sri Lanka

Easy access to international travel

Sri Lanka’s proximity to the Indian sub-continent positions the country as a gateway to a market of 1.9 billion people in South Asia combined with the country’s strategic location at the crossroads of major maritime trade routes connecting South Asia, Far East, the European and American continents presents a valuable opportunity for manufacturers pursuing international expansion.

Agile talent pool

Sri Lanka possesses a multidimensional and versatile workforce completed for your company’s every requirement at a competitive price. Sri Lankan workforce is globally acclaimed for its competence to handle precision manufacturing and high trainability to execute complex processes & operations. 

The country prioritizes “Workforce sustainability” by improving both the national education system and access to education whilst introducing vocational training programs to cater to the future demand in emerging industry sectors of Information Communication and Technology, Hospitality and Tourism, Light Engineering and Automotive manufacturing, etc.

Great place to live

A country of many facets, Sri Lanka offers a spectrum of experiences, cultures, and places for those who enjoy diversity and variety. The country’s expansive beaches, rolling hills, rain forests, and cosmopolitan cities with no shortage of restaurants and cafes, abundant nightlife, theater, and art experiences make Sri Lanka an eclectic experience for all. 

There is also an extensive choice of quality International education institutes and state of the art private hospitalization and healthcare facilities that makes Sri Lanka a truly great place to live and work for you and your family.

Fast developing infrastructure

Sri Lanka has experienced significant improvements to available infrastructure which has been recognized as a national priority by successive governments. These include an ambitious program to develop and completely upgrade seaports around the island, the international airports, roads in the city of Colombo and highways connecting to other parts of the country and power and telecommunication facilities.

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Fast developing infrastructure

Road & Rail

Sri Lanka’s transport system is based on a road network of approximately 100,000 km and a rail network of about 2,000 km linking Colombo with the rest of the country. Notable recent developments are the Southern Expressway connecting Colombo and Matara in the deep South and the Airport/Katunayake Expressway. The Outer Circular Highway in the Western Province, the Central Expressway which links Colombo and the Hill Capital of Kandy are nearing completion.

Ports

Sri Lanka’s location advantage and ports have continuously contributed to the development of the country. The Colombo Port is consistently ranked among the busiest port in South Asia. and this is capable of catering to the latest ‘Triple E Class’ ships. 33 major shipping lines use the Colombo Port while 75% of port volumes are transshipments.

Airports

The Bandaranaike International Airport is the main international airport in Sri Lanka, located 30 km North of Colombo, with connectivity to major air routes and 100 cities around the world. The Mattala Rajapaksa International Airport is Sri Lanka’s second international airport, located in the Southern Province of the country.

Telecom

Sri Lanka’s mobile market has experienced robust growth ahead of its peers over the last five years with unprecedented mobile penetration across the country. Sri Lanka was the first country in South Asia to successfully test 5G technology in 2019. Mobile banking, e-bus ticketing, mobile Points of Sale (POS), and the use of other e-commerce applications are available island wide.

Access to key markets

Sri Lanka’s strategic location provides great opportunities to enter into free trade and partnership agreements with several Asia’s trade powerhouses

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Access to key markets

Sri Lanka’s strategic location provides great opportunities to enter into free trade and partnership agreements with several Asia’s trade powerhouses.

Year 2000

Indo - Sri Lanka Free Trade Agreement (ISFTA)

Market Access : 4,228 tariff lines (6-digit level) (No of items with zero duty)
Population : 1.4 Billion

Year 2005

Pakistan - Sri Lanka Free Trade Agreement (PSFTA)

Market Access : 4,676 tariff lines (6-digit level) (No of items with zero duty)
Population : 228 Million

Year 2000

Singapore - Sri Lanka Free Trade Agreement (SSLFTA)

Market Access  : Gives access to investments and services beyond trade in goods (No of items with zero duty)
Population : 5.9 Million

Indo Sri Lanka FTA
Pakistan Sri Lanka FTA

EU GSP+

Market Access (No. of items with Zero Duty)

Population
6,400 tariff lines (8-digit level)445 Million
Benefits of EU GSP+
 

USA GSP+

Market Access (No. of items with Zero Duty)

Population
3,500 tariff lines (8-digit level)328 Million

These four markets alone combine to present an opportunity to reach over 2 billion people, when establishing your enterprise in Sri Lanka.

An added advantage for a company locating to Sri Lanka is the preferential market access gained to two large regional blocs under the South Asian Free Trade Area (SAFTA) and the Asia-Pacific Trade Agreement (APTA).

Avoidance of double taxation

Agreements on avoidance of double taxation

Relief from double taxation for foreign investors;
Sri Lanka has entered in to Double Taxation Avoidance Agreements with 45 countries to eliminate or mitigate the incidence of juridical double taxation and avoidance of fiscal evasion in the international trade (or transactions).

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Agreements on Avoidance of Double Taxation

Relief from double taxation for foreign investors;
Sri Lanka has entered in to Double Taxation Avoidance Agreements with 45 countries to eliminate or mitigate the incidence of juridical double taxation and avoidance of fiscal evasion in the international trade (or transactions).

Investment protection

Bilateral investment promotion and protection treaties

Sri Lanka has entered into 26 Bilateral Investment Promotion and Protection Treaties (BITs) so far, providing a protection to foreign investments within the country. Sri Lanka is developing its model BIT with a view of catering to the needs of covering the aspects of sustainable development principles in attracting foreign investments

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Investment Protection

Bilateral Investment Promotion and Protection Treaties

Sri Lanka has entered into 26 Bilateral Investment Promotion and Protection Treaties (BITs) so far, providing a protection to foreign investments within the country. Sri Lanka is developing its model BIT with a view of catering to the needs of covering the aspects of sustainable development principles in attracting foreign investments