Doing Business In Sri Lanka
Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka (Sinhalese: , Tamil: இலங்கை; known as Ceylon before 1972) is an island nation in South Asia, located about 31 kilometers (19.3 mi) off the southern coast of India. Popularly referred to as the Pearl of the Indian Ocean, it is home to around twenty million people.
Famous for the production and export of tea, coffee, rubber and coconuts, Sri Lanka boasts a progressive and modern industrial economy and the highest per capita income in South Asia. The natural beauty of Sri Lanka's tropical forests, beaches and landscape, as well as its rich cultural heritage, make it a world famous tourist destination
Activity Required License / Approval Licensing Authority / Agency Power Generation
Letter of Intent
Power Purchasing Agreement
Ministry of Power and Energy
Ceylon Electricity Board
Fixed/Mobile Telecommunications Services License under Telecommunication Act No.25 of 1991 Spectrum allocation Ministry of Post and Telecommunication
Telecommunication Regulatory Commission
Pay Phone Services Approval Telecommunication Regulatory Commission Operate and Maintain Private TV Broadcasting Station License
Under Sri Lanka Rupawahini Corporation Act.No. 6 of 1982
Frequency allocation and approval
Ministry of Information and Media
Telecommunication Regulatory Commission
Fish Processing and Deep Sea Fishing Approval Under the Fisheries and Aquatic Resources Act No. 02 of 1996 Ministry of Fisheries And Aquatic Resources Manufacturing Of Poultry Feed Approval Under Animal Feed Act No.15 of 1986 Ministry of Livestock Development Air Transportation License /Approval Ministry Of Civil Aviation
Civil Aviation Authority
Ministry Of Defense
Coastal Shipping License /Approval Ministry Of Shipping
Any Industry Manufacturing Arms Ammunitions, Explosives , Military Vehicles and Equipment, Aircraft And Other Military Hardware
Approval / License Ministry of Defense Any Industry Manufacturing Poisons, Narcotics, Alcohol *, Dangerous Drugs & Toxic, Hazardous Or Carcinogenic Materials And Pharmaceutical Products ** Approval / License Ministry Of Industries
Excise Department Ministry Of Health
Large Scale Mechanized Mining Of Gems, Sand Mining Approval / License Geological Survey And Mines Bureau, Coast Conservation Department Lotteries Approval / License Ministry Of Finance Oil Refinery Approval Ministry Of Petroleum And Petroleum Resources Import and Distribution of LP Gas / LNG Approval / License Ministry Of Petroleum And Petroleum Resources Mining And Export Of Minerals Approval / License Geological Survey and Mines Bureau [GSMB] Coconut Based ,Coir Related Industries Approval / License Coconut Development Authority Timber Based Industries Using Local Timber Approval Ministry Of Plantations Any Industry Producing Currency ,Coins Or Security Documents Approval / License
Ministry Of Finance
Ministry Of Defiance
Tax on foreigners acquiring properties
If a non citizen (foreigner) or a Company incorporated in Sri Lanka with more than 25% of foreign participation in the equity of such company purchase an immovable property in Sri Lanka a tax of such amount as is equivalent to the value of that property shall be paid to the central government of Sri Lanka subject to certain exceptions mention below.
Exceptions : Any land the ownership of which is transferred to an enterprise to which the Board of Investment of Sri Lanka has granted authorization in writing to set up on such land
a) a project for the construction of not less than 100 residential housing units, each constructed on land not exceeding 10 perches inclusive of appurtenant land, or a condominium property within the meaning of the Apartment Ownership Law comprising not less than 100 units for residential or non-residential accommodation, provided that the total value of said land is met by inward remittance of foreign currency.
b) a project for the construction and operation of a hospital or a hotel provided that the total value of said land is met by inward remittance of foreign currency and that the investment on the project be not less than USD 10 Million or its equivalent in Sri Lanka Rupees.
c) a project relating to infrastructure development or any other development determined by the minister as being essential for the economic progress of Sri Lanka, provided that the value of said land is met by inward remittance of foreign currency and the investment on the project be not less than USD 50 Million or its equivalent in Sri Lanka Rupees.
d) a project relating to service sector including BPO industry, IT related training institution, educational institution, determined by the minister as being essential for the economic progress of Sri Lanka , the value of said land is met by inward remittance of foreign currency a and the investment on the project be not less than USD 2 Million or its Rupee equivalent and that such projects employs not less than 50 local persons.
e) a project solely for the manufacture of non-traditional goods for export, for the establishment of its manufacturing plant , office, storage facilities, dormitories for workers provided that the value of said land is met by inward remittance of foreign currency and the investment on the project be not less than USD 1 Million or its equivalent in Sri Lanka Rupees.
f) any condominium unit of a condominium property situated on or above the 4th floor of such condominium property, the ownership of which is transferred to a person who is not a citizen of Sri Lanka, provided that the value of such unit is met by inward remittance of foreign currency. In computing the number of floors in a condominium property, a floor which accommodates any common elements within the meaning of the Apartment Ownership Law in excess of ½ of the floor area of such floor shall not be taken into account.
In addition to the above tax ,
STAMP DUTY APPLICABLE WHEN ACQUIRING IMMOVABLE PROPERTIES
In terms of the Stamp Duty (Special Provisions) Act;
(i) where the value of the property is Rs.100,000/- or less
For every Rs.100/- or part thereof of the value 3.00
(ii) where the value of the property exceeds Rs.100,000/-
For every Rs.100/- of the value not exceeding Rs.100, 000/- 3.00
For every Rs.100/- or part thereof of the value exceeding
Rs.100, 000/- 4.00
REQUIREMENT OF NOTARIAL ATTESTATION
In view of the provisions of Section 2 of the Prevention of Frauds Ordinance following classes of contracts are of no force or avail in law unless in writing and signed in Sri Lanka in the presence of a licensed notary public and two or more witnesses and duly attested.
(a) Any sale, purchase, transfer, assignment or mortgage of land or other immovable property;
(b) Any promise bargain contract or agreement for affecting any such object and for establishing any security interest or encumbrance affecting the land or other immovable property;
(c) Any contract or agreement for the future sale or purchase of land or other immovable property.