Trade & Investment
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TRADE
Current Trade Policy
Sri Lanka introduced Open economy policies 1977 and prevails even today.
Featuring

:: Liberalized market economy.
:: Outward looking policies and deregulations.
:: Economic growth through private sector participation.
:: Stimulus for private investments and export oriented activities.
:: As a result, remarkable increase in the level of foreign investment in the country.

Major Exports
Garments, tea, gems & jewellery, rubber & rubber products, coconut & coconut products, spices, machinery equipments, ceramic ware, sea food, ornamental fish, cut flowers & foliage, plants, fruits and vegetables, engineering products, electronic products, leather products ,wooden furniture & products, handloom & textiles, handicrafts & gift items, stationery products, herbal products etc.
 

Major Imports
With the implementation of reformed import policies in 1977, import structure visualize a gradual shift from consumer
goods to intermediate and investment goods.

Textiles and clothing, petroleum, machinery and equipment, building material, transport equipments, chemicals, wheat, sugar, fertilizer, diamonds, etc


Trading Partners
USA, India, UK, Hong Kong, Japan, Singapore, Germany, Belgium, China, South Korea, Taiwan, UAE, Malaysia

Trade Agreements
Sri Lankan Government policies are aimed at stretching and strengthening trade links with its regional neighbours and
major partners,

 
  Regional groupings
Sri Lanka is a member of SAARC, Bangkok Agreement, IOR-RAC,
BIMST - EC, etc.
  Free Trade Agreements
Indo - Lanka Free Trade Agreement - Sri Lanka and India signed a Free Trade Agreement in 2001 and presently more than 4200 products can be exported to India subjected to tax exemptions, provided these fulfill the rules of origin requirements. For more details : www.indolankaafta.org

FTA with Pakistan is in its final stages and also with selected countries such as Thailand, Bangladesh etc.
Sri Lanka sIgned a TIFA wIth USA and is in the process of signing with Singapore and other countries.
   
Trading with Malaysia
Sri Lanka and Malaysia have been enjoymg healthy bilateral relationships over the last few decades and is one of Sri Lanka's major trading partners.

Sri Lanka exports, gem stones & jewellery, rubber articles, garments, electrical items, fish, tea, coconut coir, porcelain
etc to Malaysia.

Sri Lanka imports petroleum, palm oil, textiles, machinery parts, plastics articles, iron & steel articles, paper, chemicals, timber etc, from Malaysia.

 

Trade Division of the Sri Lanka High Commission in Malaysia
Main objective is to develop trading and investment relationships between Sri Lankan and Malaysian businessmen.

 
Facilities offered by the Trade division of Sri Lanka High Commission
:: Attending to business inquiries
:: Assisting trade and investment promotion activities
:: Organizing trade delegations
:: Matchmaking & arranging appointments
:: Market research

Links - web sites:  
Trade Chambers - National Chamber of Commerce www.nationalchamberlk.org
The Ceylon Chamber of Commerce www.chamber.lk
Federation of Chamber of Commerce & Industry of Sri Lanka www.fccisl.org
   
Sri Lanka Export Development Board - www.tradenetsl.lk
Sri Lanka Customs - www.customs.gov.lk
Sri Lanka Tea Board - www.pureceylontea.com
Colombo Stock Exchange - www.cse.1k
Central Bank of Sri Lanka - www.centralbanklanka.org

 

INVESTMENT

Sri Lanka
:: is one of the most attractive investment destinations in the Asia Pacific region
:: Otters business friendly environment favourable to investment and economic growth
:: allow duty free import of raw materials and machinery for qualifYing industries
:: encourage international investment through liberalisation of many sectors
 
Why Over 1500 transnational companies have invested in Sri Lanka?

:: Strategic Location at the cross roads of East - West maritime routes and
international time zones
- Presently rated as South Asia's leading and service hub

:: Infrastructure
- Most developed telecommunication infrastructure facilities in South Asia.
- International airport ranked first in South Asia

:: The policy environment is indeed compelling
- Total foreign ownership is permitted across virtually all areas of the economy (few areas are restricted)
- No restriction on repatriation of earnings, fees and capital and on foreign
   exchange transactions relating to current account payment.
- Bilateral investment protection agreements with 26 countries and double
   taxation relief agreements with 37 countries. (also with Malaysia)
- The safety of foreign investment is guaranteed by the constitutions.
- Most liberal business and investment environment in South Asia
- Ranked 39th out of 150 states with regard to policy environment and investor competitiveness by the    World Bank

:: Skilled workforce
- English spoken and understood trainable, educated, intelligent, energetic
  workforce and professionals to be hired
- Competitive wage rates,
- Sri Lanka high life expectancy rate, high literacy rate, low infant and child
   mortality rate are among the Asian countries.

:: High Quality of Life

:: Transparent Investment laws
- Country's investment laws are transparent and automatic across a wide
   range of sectors. BOr has the authority to grant exemptions from various
   laws including Inland Revenue, Customs and Exchange Control.
- When a company signs an agreement with the BOr the specific incentives granted remain valid for the  life of the enterprise. The provision and the spirit of the Agreement cannot be changed by successive   governments.

:: Generous Tax incentives import duty exemptions, tax holidays
:: Board of Investment of Sri Lanka - BOI Facilitation
   The BOI is structured to function as a central point for investors. It operates as a autonomous statutory body
directly responsible to the President of Sri Lanka.
   Bureau of Infrastructure Investment - BII has been established as a separate division within the    BOI to coordinate and facilitate private sector investments relating to infrastructure.

For more details contact
Board of Investment of Sri Lanka
www.boi.lk


 

Extra protection for Malaysian companies
Bilateral investment protection agreement signed with Malaysia on 16.04.1982

Potential areas for investment
- Information Technology
- Electronics
- Automobile components
- Textiles, Garments & accessories
- Light engineering
- Rubber
- Agriculture and / or Agro processing projects
- Mining and processing
- Ceramic industries
- Gems & jewellery
- Large/small scale infrastructure - Power generation, transmission, distribution, Construction- Highway,  housing, bridges, harbours, ports, airports etc
- Manufacture of non traditional goods for exports
- Research and Development
- Regional Operating Headquarters
- Tourism, recreation & leisure
- Export oriented services

For more details: visit -www.boi.lk

 
Contact us
For further details on trade and investment

Mr. G.L.Gnanadeva
Third Secretary (Commercial)
Sri Lanka High Commission - Trade Division
Tel: 603-42571754
Fax: 603-42532497
Email:slhicom@streamyx.com

 
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