The Government Information Center

Qualifications required in brief for granting Approval for investment
Following qualifying criteria have to be satisfied by the investor for investing in Sri Lanka.

Under the Board of Investment Law No. 04 (BOI Law) of 1978 and its amendments, the BOI is the premier agency responsible for granting approval for Direct Foreign Investment, as well as Local Investment.

The Government of Sri Lanka has identified following nine (9) Priority Sectors to encourage setting up of Investment Projects in Sri Lanka.

1. Tourism & Leisure
2. Knowledge Services
3. Agriculture
4. Infrastructure
5. Utilities
6. Education
7. Apparel
8. Manufacturing (except Apparel)
9. Regional Programmes and Export of Services

All sectors indicated above are open for foreign investment except for following four (4) sectors which are reserved for Sri Lankans.

1. Money lending
2. Pawn broking
3. Coastal fishing
4. Retail trade (with less than one million USD worth of capital)

5. Provision of security services including security management, assessment and consulting to individuals or private organizations

Granting of approval for Investment Proposals is done in keeping with the regulations setup under Sections 17 or 16 of the BOI Law. The eligibility criteria to be satisfied under these regulations are briefed below.

1. For Granting of approval under Section 17 of the BOI Law.

Investors (both foreign and local) are eligible for relevant incentives, tax concessions, customs duty exemptions, etc., provided the fulfilling of eligibility criteria stipulated by the BOI regulations.

2. For Granting of approval under Section 16 of the BOI Law.

Foreign investors must obtain BOI approval for the foreign investment entry, to set up projects under this category, under either of the following circustances;

* The foreign investor or company does not fulfill the criteria to set up a project under Section 17 of the BOI Law.
* A non-BOI enterprise transfers shares to foreign investors.

Projects approved under Section 16 of the BOI Law would operate under the Normal Laws of the country, and, would not be eligible for the Special Concessions provided under Section 17.

Following qualifying criteria have to be satisfied by the potential investor/s for investing in Sri Lanka.

1. Forward an Application filled with details of the proposed investment project to the Board of Investment of Sri Lanka as per the Rules and Regulations stipulated by the BOI.

2. After approval is granted for the investment proposal, an agreement should be signed by the Potential investor/s with the Board of Investment of Sri Lanka as per the Rules and Regulations stipulated by the BOI.

3. Potential investor/s should be able to furnish the details of required monetary provisions for the proposed investment.

4. Expression of interest, keenness, knowledge and experience for investing in Sri Lanka is to be shown.

Contact the staff officers listed below, classified as per the Priority Sectors identified for investment in Sri Lanka, to obtain the details of minimum investment amount required for granting approval under Section 17 of the BOI Law.

Places where Applications could be Obtained

Aplications for investment, along with necessary advice and guidance, could be obtained from officers attached to following offices, based on the respective Sector Group as indicated below;

Relevant sector Group located on Level 24 or 26,
Board of Investment of Sri Lanka,
West Tower, World Trade Centre,
Echelon Square, Colombo 01.

� Sector Groups located on Level 26 :

� 1. Tourism & Leisure
� 2. Knowledge Services
� 3. Agriculture

� Sector Groups located on Level 24 :

� 4. Infrastructure
� 5. Utilities
� 6. Education
� 7. Apparel
� 8. Manufacturing (except Apparel)
� 9. Regional Programmes and Export of Services

Application Fees
Application forms for investment are issued free of charge.

Time allotted for provision of Advice

On public working days, from 8.30AM to 4.30PM.

Officials are bound to meet investors out side working hours (ie. after 4.30PM on working days and during daytime on week-ends and public holidays) as well, on special occasions.

Time allotted for submitting of Applications

On public working days, from 8.30AM to 4.30PM, at offices given above.

Service Charges

For Provision of advice: No fee is charged for provision of advice.

For Application Processing:

�Fees for processing of investment application under Section 16 & 17 of the BOI Law is as follows.

(These payments can be made in Sri Lanka Rupees as well)

�1. Fees charged Under Section 17 of the BOI Law : US $ 200 + (excluding government taxes).

�2. Fees charged Under Section 16 of the BOI Law : US $ 200 + (excluding government taxes).

Time Taken to Provide Services (General and priority services)

For Provision of advice:
• Ten (10) to thirty (30) minutes for general information on investment promotion.

• More time will be taken to provide more information.

For Granting of Approvals:
• Priority is given to all applications.

• The time taken to provide some approvals/services, such as, EIA, location, land, buildings, defence clearance, etc., will be determined by the response time of the relevant Government Ministries, Departments and Organizations in connection with the project.

Required Documents

Provision of advice:
No specific documents are required for obtaining advisory services, apart from identification documents.

The visitors to the Board of Investment for advisory services, exchange their Business Cards with BOI officers.

When submitting Applications:
1. Perfected application form.
2. Project report (based on the nature of the project).
3. Statements from the Bankers to prove the financial status of the investors.
4. The particulars of the land or site intended for the project (or factory).

Staff Officers in-Charge of Services

Exceptional and Special Circumstances

If the necessity arises, promotional Staff Officers in-Charge of Services assist the investors to locate lands & factory buildings and accompany them on site inspections.

Specimen Application Form (Just click the blue form number)

Following two specimen application forms which are in use at present have been attached herewith.

Application Form 01 : Application form for obtaining Approval under Section 17 of the BOI Law. (No.42/FO/IN/01)

Application Form 02 : Application form for obtaining Approval under Section 16 of the BOI Law. (No.42/FO/IN/02)