Board of Investment
Opportunities in Sri Lanka
The Board of Investment (BOI) of Sri Lanka serves as the primary gateway for foreign and domestic investors, offering streamlined approvals, world-class industrial zones, and competitive incentives across high-growth sectors.
Sri Lanka’s Investment Landscape
Established in 1978 under BOI Law No. 4, Sri Lanka’s Board of Investment has become the institutional cornerstone of the nation’s investment ecosystem, facilitating billions in FDI across manufacturing, services, and infrastructure.
What is the BOI?
The Board of Investment is Sri Lanka’s principal investment promotion agency, headquartered at Level 24, West Tower, World Trade Centre, Colombo 01. It functions as a near one-stop-shop for foreign and domestic investors — covering approvals, industrial zone access, and ongoing facilitation services.
In 2025, the BOI launched its Accelerator Program — a two-year action plan to strengthen institutional capacity, streamline approval processes, and position Sri Lanka as a globally competitive investment destination.
2025 Performance Milestone
The BOI achieved a landmark milestone in 2025 by surpassing the US$1 billion FDI target for the first time, with actual inflows reaching US$1,057 million — a 72% increase compared to 2024.
Singapore led FDI sources at 30%, followed by India (20%), France (12%), Netherlands (11%), and Luxembourg (5%). Manufacturing attracted the largest share at 46%, followed by port development (26%) and tourism (11%).
Key Investment Sectors
The BOI actively promotes investment across nine priority sectors, each offering targeted incentive packages and dedicated facilitation pathways.
Infrastructure & Construction
7% average annual growth. Priority areas: highways, sea ports, airports, industrial zones, mixed development, and renewable energy infrastructure.
Min. US$12.5M (large-scale)Healthcare & Medical Services
Hospital construction and management, medical equipment manufacturing, pharmaceutical production zones, healthcare technology, and medical tourism.
Min. US$500KUtilities & Energy
100% electricity accessibility and 98% grid connectivity. Power generation, water supply, waste management, renewable energy, and smart grid infrastructure. Commercial 5G live nationwide.
Min. US$5MReal Estate & Urban Development
17 mixed-use development sites with pre-approved infrastructure connectivity. Port City Colombo, Colombo Skyline, and regional city development in Kandy, Galle, and Jaffna.
Min. US$250K · 100% foreign ownershipManufacturing & Industrial Zones
16 Export Processing Zones with 285 companies generating US$3 billion in annual export revenue. Clusters in textiles, pharmaceuticals, heavy industry, and technology parks.
Min. US$500K (export-oriented)Port & Logistics Development
Colombo ranked 17th best-connected port globally and world’s fastest-growing port in 2024. Opportunities in Colombo Port expansion, Hambantota Port, and free port operations.
Strategic gateway positionInformation Technology
Commercial 5G nationwide and a highly educated workforce. Sri Lanka is emerging as a regional technology services hub for data centres, software development, and BPO.
Rapidly growing sectorTourism & Leisure
Record 2.36 million arrivals and US$3.2 billion in earnings in 2025. Strong opportunities in hotels, resorts, eco-tourism, and leisure development.
US$3.2B revenue 2025Pharmaceuticals
Dedicated pharmaceutical manufacturing zone at Hambantota — 400 acres, significant tax exemptions, targeting 40% domestic pharmaceutical supply and up to US$1 billion in annual exports.
Special tax regimeInvestment Categories & Minimum Thresholds
| Investment Category | Minimum Investment | Key Incentives | Status |
|---|---|---|---|
| Manufacturing (Export-Oriented) | US$500,000 | Tax holidays, duty exemptions, visa facilitation, EPZ access | Open |
| Large-Scale Infrastructure | US$12.5 million | Extended tax concessions, strategic project status, land facilitation | Open |
| Hospital Construction & Healthcare | US$500,000 | Special tax regime, medical equipment duty exemptions | Open |
| Utilities (Power, Water, Waste) | US$5 million | Long-term concessions, rate guarantees, off-take agreements | Open |
| Strategic Development Projects (SDPs) | US$15 million+ | Up to 25-year tax holiday, full customs exemptions, VAT exemption | Cabinet Approval |
| Real Estate Development | US$250,000 | Full foreign ownership allowed, long-term residence visa | Open |
| Retail Trade (Foreign Investor) | US$5 million | Operating license, standard BOI benefits | Min. Capital Required |
| Colombo Port City (BSI Status) | As specified by CPCEC | Full exemption from all taxes & duties for up to 25 years, 100% foreign ownership | Special Regime |
Export Processing Zones & Industrial Parks
Sri Lanka operates 18 Export Processing Zones (EPZs) under BOI administration, with 285 companies generating over US$3 billion in annual export revenue.
🏭 Katunayake EPZ
Western Province — Sri Lanka’s oldest and largest EPZ, adjacent to Bandaranaike International Airport. 200+ companies; textiles, apparel, and electronics.
🏭 Biyagama EPZ
Western Province — High-tech manufacturing with proximity to Colombo port. Electrical and electronic focus; auto components cluster.
🏭 Koggala EPZ
Southern Province — Near Galle and Koggala Airport. Gems and jewellery cluster; light manufacturing industries.
🏭 Seethawaka EPZ
Western Province — Heavy industrial focus. Rubber-based products and chemical manufacturing hub.
🏭 Mirigama EPZ
Western Province — Food processing zone with agro-industrial products and packaging industry focus.
🏭 Malwatte Valley EPZ
Central Province (Kandy region) — Pharmaceutical manufacturing, central location connectivity, and emerging tech services.
The BOI Investment Process
Initial Inquiry
Contact the BOI Investor Facilitation Centre or visit the online portal to explore opportunities and sector-specific information tailored to your investment profile.
Submit Application
File an online investment application at application.boi.lk with a detailed business proposal, shareholding structure, and funding plan.
Project Screening
The Project Screening Committee reviews applications. Strategic Development Projects require Cabinet of Ministers approval with Minister of Finance recommendation.
Investment Agreement
Upon approval, a formal Investment Agreement is signed with the BOI outlining agreed incentives, conditions, timelines, and reporting obligations.
Commencement
Begin operations with ongoing BOI support, including visa facilitation, customs procedures, land access, and industrial relations assistance.
Investor Protections & Legal Framework
Bilateral Investment Treaties
Sri Lanka has signed investment protection agreements with 26–28 countries, including the United States (in force since May 1993). The Constitution gives ratified agreements the force of domestic law.
Double Taxation Avoidance
Sri Lanka maintains DTAAs with 38–45 countries, eliminating the risk of double taxation on investment returns. Key agreements with India, UK, USA, Singapore, and major EU member states.
ICSID & International Arbitration
Sri Lanka is a member of ICSID and has ratified the 1958 New York Convention, ensuring international arbitration awards are recognized and enforceable domestically.
Protection Against Expropriation
Since adopting economic liberalization in 1978, Sri Lanka has not expropriated any foreign investments. The Land Acquisition Act mandates market-value compensation for any government acquisition.
Profit Repatriation
Sri Lanka permits 100% foreign ownership in most sectors, with constitutional guarantees for unrestricted repatriation of earnings, fees, and capital. All receipts in Government Securities are fully repatriable.
Free Trade Agreements
Sri Lanka maintains FTAs with India, Pakistan, Singapore (comprehensive), and Thailand (in force January 2025), providing preferential market access for goods manufactured in Sri Lanka’s EPZs.
Ready to Invest in Sri Lanka?
The BOI’s Investor Facilitation Centre is your single point of contact for all investment enquiries, approvals, and ongoing support. With a US$1.5 billion FDI target for 2026 and a pipeline of landmark projects, now is the time to position your investment in Sri Lanka.
Level 24, West Tower, WTC, Colombo 01 · ☎ +94-77-1211213 · info@boi.lk
Sources & Citations
- Board of Investment of Sri Lanka (2026). BOI reports $1b FDI in 2025, up 72% YoY. Daily FT, Jan 23, 2026.
- Board of Investment of Sri Lanka (2025). BOI Investment Guide, September 2025.
- Board of Investment of Sri Lanka (2025). Investment Incentives 2025.
- U.S. Department of State (2025). 2025 Sri Lanka Investment Climate Statement.
- Varners Law (2025). Doing Business in Sri Lanka 2025. Chambers Global Practice Guides.
- Board of Investment of Sri Lanka (2026). BOI 2025 Numbers. dgi.gov.lk