The Board of Investment of Sri Lanka is empowered to approve projects under following categories:
Projects approved under Section 16 of BOI Law
Projects are approved under section 16 of BOI Law, where foreign investment is permitted without any fiscal concessions.
These projects are governed under Normal laws of the country and are subject to Inland Revenue Laws, Custom Laws and exchange control regulations. This can be either 100% foreign investment or a joint venture investment with a local collaboration.
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.
These approvals are granted (usually) under the following circumstances:
– to facilitate the entry of foreign investment
– setting up of a new company with foreign shareholding
– for the purpose of transferring or issuing new shares in an existing non-BOI company to foreign investor
Projects are approved under section 17 of BOI Law, where foreign investment is permitted with exemptions from laws such as Inland Revenue, Exchange Control and Customs.
Such exemptions and concessions are subject to the fulfillment of project specific criteria such as investment threshold or any other specified requirement.The following transparent investment laws aim to foster foreign direct investments: