Sri Lanka, an island with a population of 19 million, is currently going through a rapid phase of development. The present economic strategy of the Government is to promote the private sector to play a leading role in economic activities. Therefore, special emphasis has been placed on creating a business climate conducive to local and foreign investment.

Sri Lanka’s economy was opened to foreign investments in 1978. Since the opening of the economy, Sri Lanka is committed to improve economic and investment environment of the country with a view to creating a promising destination to foreign direct investments.

Sri Lanka is moving positively with realistic economic approach, guided by H.E. the President’s 2005 election manifesto Mahinda Chintanaya ("Mahinda’s Thoughts") by steering investments to disadvantaged areas; developing small and medium enterprises; promoting agriculture; and strengthening the civil service.

Generally, the treatment given to foreign investors is non-discriminatory. The Board of Investment (BOI) which is an autonomous statutory agency is the primary government authority responsible for investments, particularly with a focus on foreign investment. The BOI acts as a facilitator for investment and is intended to provide "one-stop" service for foreign investors, with duties including approving projects, granting incentives, and arranging services such as water, power, waste treatment and telecommunications. The BOI is an effective vehicle in assisting investors who desire to set up operations within its industrial processing zones as well as investments outside these zones. It also assists investors in obtaining resident visas for expatriate personnel and facilitates for import and export clearances. The BOI encourages investors to locate their operations in BOI-established industrial processing zones and Investment projects located in industrial zones have access to relatively better infrastructure facilities such as reliable power, telecommunication and water supplies.

The BOI will also advise potential investors about laws and regulations that may affect their operations in Sri Lanka including the laws pertaining to tax, labour and labour standards, exchange controls, customs, environmental norms, and building and construction standards etc.

Compared to other South Asian countries, Sri Lanka has created a level field for foreign investments and offers an open financial system, good infrastructure, and a capable worker force. Foreign investors have realized worthwhile returns on their investments in Sri Lanka.

The government encourage foreign investment in different areas including in the banking, finance, construction of residential buildings, roads, telecommunication, energy production, professional services, and the establishment of liaison offices or local branches of foreign companies. Sri Lanka also encourages foreign investments in information technology, electronics assembly, light engineering, automobile parts and accessories manufacturing, industrial and information technology parks, rubber based industries, information and communication services,tourism and leisure related activities, Mining and Processing, agriculture and agro processing, Gem & Jewellary industry, Health Care & Pharmaceutical,  port-related services, and infrastructure projects.

In principle, the Constitution of Sri Lanka guarantees the protection of foreign investments. The government has also entered into several investment protection agreements with foreign governments and is a founding member of the Multilateral Investment Guarantee Agency (MIGA) of the World Bank. The government has ratified the Convention on Settlement of Investment Disputes, which provides the mechanism and facilities for international arbitration through the World Bank’s International Center for the Settlement of Investment Disputes (ICSID).

Employment of foreign personnel is permitted when there is a shortage of qualified local labour. Foreign employees attached to BOI-approved companies usually receive preferential tax treatment for an initial period and do not experience difficulties in obtaining work or residence permits.

The Colombo Stock Exchange (CSE), considered as an emerging Stock Market, is one of the most technologically sophisticated in the region. The CSE has fully automated trading, clearing and settlement systems.

There are vast opportunities in deferent sectors in Sri Lanka for Vietnamese investors and  comprehensive information on investment opportunities, investment incentives as well as other investment-related issues could be obtained by potential investors contacting the Board of Investment directly. The BOI could be reached at http://www.boi.lk, or via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . The BOI has introduced an investor matchmaking service via the BOI website. Information regarding this service can be found at www.boi.lk/partnership .