Board of Investment Sri Lanka

by Asif Nazeer on 08-11-2011 in Doing Business

 

The role of the board of investment – Sri Lanka
 
The Board of Investment of Sri Lanka has originated at Colombo, Sri Lanka in the year of 1978 to develop the foreign investment and to secure the investments in the all parts of Sri Lanka. After a long of the formation of the BOI, the commission was reconstituted to operate more accurately and effectively. It has a significant effect on the development of the country’s economic development. It exists for a long time to serve the economic condition of Sri Lanka. Board of Investment of Sri Lanka (BOI) is now monitoring the entire island.
 
The main object of forming BOI was to facilitate the investors. Like an utmost stator body, it operates. The Board of Directors is drawn from the different public and private sector to facilitate and support the investment process. A high powered Cabinet Sub Committee inter-ministerial leadership providing a form for investor assistance has been set up to strengthens the BOI, clear all bottlenecks and also works for the fast clearance of the investment approvals. For this, investors can really organize and start their projects on Sri Lanka at problem free condition, with a fast and effective effort. 
 
To ensure the country’s reputation and competency profile, investment climate monitoring is also reconstructed for its improvement. BOI makes it easy for the investors to know the all aspects of the country by highlighting the investment policies of the nation and the facilities that Sri Lanka provide for the investors. The several questions that are raised by the investors are answered by the Board of Investment of Sri Lanka. Today, the Board of Investment of Sri Lanka companies have a number of 400000 employees. They account for nearly 70% of Sri Lankan exports and 80% of the country’s industrial exports.
 
The Board of Investment of Sri Lanka (BOI) is a constitutional body that is originated by the govt. Of Sri Lanka to help the investors, specially foreign investors by providing information and advices throughout the process of the investment. In other words it can be regarded as the ‘one stop shop’ for the investors. By making faster clearance of approval it provides a great support to the investors, so that they can start their projects immediately in the country. Through law and legislation, the Sri Lankan constitution ensures the protection for the investors. Through an agreement BOI ensure a degree of stability in all stages of the life of the enterprise.
 
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. Approval under Section 16 of the BOI Act permits foreign investment entry to operate only under the 'normal laws' of the country; that is, for such enterprises, the provisions of the Inland Revenue, Customs and Exchange Control Laws shall apply.
 
The BOI provides suggestion and support at every phase of the investment process and we can help you in the following ways:
 
1. Arranging support services such as water, power, waste treatment and telecommunications.
2. Making recommendations to Immigration Authorities for issuing resident visas.
3. Facilitating import/export clearance and customs procedure for import of capital goods, raw materials and the export of the final product.
 
Now, let’s focus on a quick overview on the different facilities that BOI provides for the foreign investors. The facilities that BOI is originated to provide are:
 
1. It provides basic guidance and information to the potential and interested investors before they submit their project application and fetching approvals from the other govt. agencies, if applicable.
2. The BOI evaluate the applications from the investors and provide concessions where applicable to the project.
3. It makes recommendations to immigration authorities for issuing resident visas.
4. The BOI of Sri Lanka also provides export/import clearance and customs procedure for import of capital goods, raw materials and export of the final product.
5. Last but not the least BOI also advise on the environmental norms of the nation and also provide environment approvals.
Apart from this there are some concessions for the foreign investors.
 
Let’s have a quick look on those too. 
 
1. In Sri Lanka total foreign ownership is permitted.
2. There are no restrictions in the constitution of the Sri Lanka for the earning of the capital.
3. Sophisticated legal and regulatory framework is formed to ensure the protection for the investors.
4. Bilateral investment protection agreements with twenty six countries and avoidance of double taxation agreements with thirty seven countries.
5. There are ample of tax exemptions in many cases and many situations in Sri Lanka.
6. Sri Lanka also provides free duty on the imports of the capital goods and raw materials.
7. Bilateral and multilateral trade agreements enabling the easy access to foreign markets with minimum or zero tariff barriers.
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