The Board of Investment of Sri Lanka is structured to function as a central facilitation point for investors, providing advice and assistance at every stage of the investment process. It is the only organisation an investor needs to contact.
Pioneering South Asia's economic liberalisation, Sri Lanka for over two decades has followed free market policies and has evolved a business-friendly policy environment favourable to investment and economic growth. Over the years, successive governments of this country have continued to liberalise many areas of the economy to pave the way for international investment.
As a result Sri Lanka remains one of the most attractive investment destinations in the Asia-Pacific region.
The policy environment is indeed compelling - consider:
-- Total foreign ownership is permitted across virtually all areas of the economy.
-- There are no restrictions on repatriation of earnings, fees an capital, and on foreign exchange transactions relating to current account payments.
-- The safety of foreign investment is guaranteed by the constitution.
-- A sophisticated legal and regulatory framework exists, covering for example, intellectual property, settlement of disputes through arbitration, company laws etc.
-- Bilateral investment protection agreements with 26 countries and double tax relief agreements with 37 countries.
Sri Lanka also has much to offer because of its many natural attributes and competitive advantages:
LOCATION: Colombo is situated at the crossroads of major shipping routes to South Asia and the Far East. In recent years, our port has become a major trans-shipment hub. Sir Lanka hopes to leverage on its locational advantage by implementing a policy framework to position the country as a services hub to the subcontinent. Based on this concept, Sri Lanka is now poised to exploit its location as:
-- A regional hub for communications - We are connected by the SEA-ME-WE fibre-optic communication system, and 11 communication satellites are over the Indian Ocean just south of Sri Lanka.
-- A regional hub for cargo - Sri Lanka has for centuries been on the maritime silk road. The Port of Colombo is already South Asia's premier transshipment port but we are continuing to develop our ports - Colombo, Galle, Trincomalee and Hambantota to face the challenges of the 21st Century.
-- A regional hub for services - logistics, financial and IT based.
Moreover Sri Lanka is the logical location for manufacturing and service organisations that wish to establish a presence in what is fast becoming an economic powerhouse in the region.
The island is ideally located as the gateway to the vast Indian subcontinent-home to a quarter of the world's population.
In addition, trade barriers are falling throughout the region. The seven countries which comprise the South Asian Association for Regional Co-operation (SAARC) have resolved to progress towards a South-Asia Fee Trade Agreement (SAFTA) over the next 5 years.
Sri Lanka already has a free Trade Agreement with India and is negotiating one with Pakistan. Cordial diplomatic and economic ties are maintained with all countries in the region.
SKILLED WORKFORCE: Sri Lankan labour is reputed for its precision, quality and productivity. We have an educated and energetic workforce whose trainability is among the best in comparable investment a location. Skilled and semi skilled workers are available at highly competitive wage rates. English is both widely understood and spoken.
Emphasis is placed on developing Sri Lankan's human resources. According to data published by the World Bank, Sri Lanka has the highest life expectancy (71 years) highest literacy rate (92 percent) and lowest infant and child mortality rates among the designated low income countries. Sri Lanka also has the lowest rate of population growth in the developing world (1.3 percent). We also have the lowest urbanisation rate within this group.
This situation is the result of extensive investment in public education and welfare by successive post-independence governments - Education is free from kindergarten to university.
Health facilities are also free. Universities and technical colleges are geared towards the needs of industry.
Today, investors will find an intelligent, educated and energetic workforce that is comfortable with modern production techniques and has a level of trainability that is among the best in the region.
In fact we believe we have the best quality workforce available at this income and wage level.
QUALITY OF LIFE: According to the World Bank, Sri Lanka's indicators for quality of life in terms of gross domestic product (GDP) per capita, adjusted to reflect purchasing power parity is over US$ 3400 per year, and therefore, relatively high. The figure is higher than Philippines and more than double that of India.
Furthermore, according to the 1997 Index of Economic Freedom, Sri Lanka is ranked 29th out of 150 developed and developing countries.
The country's scenic beauty and bio-diversity are ranked among the best in the world. Sri Lanka also has eight world heritage sites as classified by UNESCO - an indication of the country's rich cultural heritage.
The quality of life is the highest in the South Asian region. A cosmopolitan living environment, abundant recreational facilities, a culture dating back 5000 years, unparalleled natural beauty and an equable climate throughout the year make Sri Lanka a pleasant place in which to live.
BUSINESS CLIMATE: Comparisons have shown that Sri Lanka offers one of the most liberal business environments in Asia. Total foreign ownership is welcome in most areas of the economy. While there are a few areas where foreign investment is restricted or limited, these are being minimised.
There are no restrictions on the repatriation of earnings and capital.
The Sri Lankan government is business-friendly and is actively pursuing a policy of economic liberalisation with emphasis on private sector investment.
The private sector plays a vital role in traditional areas of public investment such as telecommunications, energy and transport. So far, many enterprises are in the process undergoing privatisation.
TRANSPARENT INVESTMENT LAWS: The country's investment laws are transparent and automatic across a wide range of sectors. Under the terms of the Board of Investment Law, the BOI has wide ranging authority to grant exemptions from various laws including Inland Revenue, Customs and Exchange Control.
It is significant that when a qualifying investment project enters into an agreement with the BOI, the incentives granted to the project company are valid for the life of the enterprise. The applicable incentives enshrined in the Agreement cannot be changed by successive governments. This is the fundamental strength of a BOI Agreement, which few other countries can offer, or match.
GENEROUS TAX INCENTIVES: Certain projects, which the Government of Sri Lanka encourages, quality for incentives. The rationale for granting these incentives stems from the need:
-- To promote the diversification of Sri Lanka's industry and services, focusing on advanced technology, and value addition.
-- To promote investments in large-scale projects with special emphasis on infrastructure.
-- To exploit regional opportunities and Sri Lanka's comparative advantages.
Comments
Comments are closed.