Sri Lanka Tourism Development Authority

BOI Incentives

BOI Incentives

The Board of Investment (BOI) has its origins in the Greater Colombo Economic Commission, Which was established in 1978. Fourteen years later, in 1992, the Commission was reconstituted as the Board of Investment of Sri Lanka.

The BOI is structured to function as a central facilitation point for investors. It operates as an autonomous statutory body. It has a Board of Directors drawn from the private and public sectors and several departments that are geared to facilitating the investment process.

Significantly, when you sign an agreement with the BOI, the specific intensives granted to an eligible company – which may include tax holidays or preferential tax rates, exemption from customs duty and foreign exchange controls.

The provisions and the spirit of the agreement can not be changed by successive governments. This is the fundamental strength of a BOI agreement, which few other countries can offer, or match.

To date, around 1500 companies, which have signed agreements with the BOI, are in commercial operation.

Main Statutory Provisions

The principal law applicable to foreign investment is BOI Law No. 4 of 1978 and amendments introduced in 1980, 1983 and 1992 and Regulations made under the Act.

The BOI Act provides for two types of investment approvals;

Approval under Section 16 of the BOI Act permits foreign investment entry to operate only under the 'normal laws' in the country; that is, for such enterprises, the provisions of the Inland Revenue, Customs and Exchange Control Laws shall apply.

Under Section 17 of the Act, the BOI is empowered to grant special concessions to companies satisfying specific eligibility criteria, which are designed to meet strategic economic objectives of the government. The mechanism through which such concessions are granted is the Agreement, which modifies exempts and waives identified laws in keeping with the BOI Regulations. These laws include Inland Revenue, Customs, Exchange Control and Import Control.

BOI Tourism Incentives

Tourism is categorized under small scale infrastructure projects. [More]