Sri Lanka : The Competitive Advantage

Sri Lanka possesses competitive advantages in South Asia in terms of :

1. Location

2. Investment Entry

3. Fiscal Incentives

4. Human resources and quality of life

5. Duty free access to India, Pakistan and EU

Situated at the center point of major shipping routes to South Asia and Far East , Colombo is already a transshipment center and a hub port.

Sri Lanka hopes to leverage on its locational advantage by implementing a policy framework to position the country as a ’services hub’ to the Indian Subcontinent . Based on this concept the main activities to be carried out over the next few years include:

• Positioning Colombo as a regional hub for communications/IT/BPOs

• Expansion of the port of Colombo as a center for transshipment

• Expansion of the Colombo International Airport

• Promotion of Colombo as a regional financial center

• Construction of a new Airport in the South

Investment Entry

The Board of Investment (BOI) is the primary entry point for foreign investment into Sri Lanka. The procedures are simple and transparent, providing ease of entry.

Fiscal Incentives

The Sri Lankan Government offers a wide range of incentives for investors. Incentives are offered for export oriented manufacture and services, infrastructure, agriculture and for rural economic development and investors may be eligible for incentives provided by the BOI.

When an agreement is signed with the BOI, the incentives granted and commitments made , cannot be changed by successive governments.