This country currently has a directory entry or basic profile only; a full handbook is planned.
01Overview
- Region
- South Asia
- Capital
- Sri Jayawardenepura Kotte
- Currency
- LKR
- Languages
- Sinhala, Tamil
- ISO code
- LK / LKA
Jurisdictions
- Sri Lanka — National level; special zones and regulated sectors have separate rules
Macro indicators such as GDP and population will be added from the World Bank in the data release (P1).
02Market Entry
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Rules vary by sector
- Applies to
- Incentives are set by the BOI by type and size, subject to Treasury approval
- Jurisdiction
- Sri Lanka
- Source
- MOFCOM
03Business Formation
Common legal entity
The company form most commonly used by foreign investors for a local operating entity.
Private limited company
- Applies to
- Ordinary companies
- Jurisdiction
- Sri Lanka
- Source
- MOFCOM
Registration authority
Primary authority for company or commercial registration.
Department of the Registrar of Companies
- Applies to
- Ordinary companies
- Jurisdiction
- Sri Lanka
- Source
- MOFCOM
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
Rules vary by sector
- Applies to
- Incentives are set by the BOI by type and size, subject to Treasury approval
- Jurisdiction
- Sri Lanka
- Source
- MOFCOM
04Taxation
Headline corporate income tax
Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.
30%
- Applies to
- Applies from April 2023; gaming, liquor and tobacco pay 45%
- Jurisdiction
- Sri Lanka
- Source
- State Taxation Administration
Indirect tax (VAT / GST / SST)
Standard rate and type of VAT, GST or sales & service tax.
VAT general rate 18%
- Applies to
- Ordinary companies
- Jurisdiction
- Sri Lanka
- Source
- State Taxation Administration
Dividend withholding tax (non-residents)
General withholding on dividends paid to foreign shareholders, before treaty relief.
15% on dividends to non-residents
- Applies to
- Ordinary companies
- Jurisdiction
- Sri Lanka
- Source
- State Taxation Administration
Tax authority
Authority responsible for corporate tax registration and filing.
Inland Revenue Department
- Applies to
- Ordinary companies
- Jurisdiction
- Sri Lanka
- Source
- State Taxation Administration Inland Revenue Department
Tax treaty with China
Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.
In force
- Applies to
- Rates and conditions per the treaty text and STA publications
- Jurisdiction
- Sri Lanka
- Source
- State Taxation Administration (China) State Taxation Administration
05Banking & Payments
Exchange controls
Whether general exchange controls or cross-border fund rules apply.
Exchange controls apply
- Applies to
- Converting rupees to foreign currency is restricted; local companies may open BFCA accounts
- Jurisdiction
- Sri Lanka
- Source
- MOFCOM
Banking & financial regulator
Primary regulator for banking and foreign exchange.
Central Bank of Sri Lanka
- Applies to
- Ordinary companies
- Jurisdiction
- Sri Lanka
- Source
- MOFCOM
06Employment
Foreign employee work permit
Main permit types needed for foreign employees to work legally.
Work visas subject to strict approval
- Applies to
- Ordinary companies
- Jurisdiction
- Sri Lanka
- Source
- MOFCOM
Labour & work permit authority
Authority for labour rules and foreign employee work permits.
Foreign employment office; Department of Immigration and Emigration
- Applies to
- Ordinary companies
- Jurisdiction
- Sri Lanka
- Source
- MOFCOM
Social security contributions
Main employer social security schemes for local and foreign employees.
Employees' Provident Fund (EPF) and Employees' Trust Fund (ETF)
- Applies to
- Employers contribute a percentage of earnings
- Jurisdiction
- Sri Lanka
- Source
- Employees' Trust Fund Board
07Trade & Customs
Customs authority
Authority for import/export clearance and tariffs.
Sri Lanka Customs
- Applies to
- Ordinary companies
- Jurisdiction
- Sri Lanka
- Source
- MOFCOM
Main free trade agreements
Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).
SAFTA, APTA and others
- Applies to
- Ordinary companies
- Jurisdiction
- Sri Lanka
- Source
- MOFCOM
08Investment & Manufacturing
Investment authority / agency
Body responsible for approving, registering or promoting foreign investment.
Board of Investment of Sri Lanka (BOI)
- Applies to
- Ordinary companies
- Jurisdiction
- Sri Lanka
- Source
- MOFCOM
Free zone / SEZ regime
Whether free zones or special economic zones operate under rules different from the mainland.
Export processing zones
- Applies to
- Ordinary companies
- Jurisdiction
- Sri Lanka
- Source
- MOFCOM
09Digital & IP
IP office
Authority for trademark and patent filing and registration.
National Intellectual Property Office of Sri Lanka
- Applies to
- Trademark rights are territorial; register locally or designate via the Madrid System (check WIPO membership)
- Jurisdiction
- Sri Lanka
- Source
- WIPO
Personal data protection law
Main law and regulator governing collection, use and cross-border transfer of personal data.
Personal Data Protection Act No. 9 of 2022
- Applies to
- Supervised by the Data Protection Authority; provisions take effect in phases
- Jurisdiction
- Sri Lanka
- Source
- Data Protection Authority of Sri Lanka
10Compliance & Risk
New York Convention party
Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.
Yes
- Applies to
- Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
- Jurisdiction
- Sri Lanka
- Source
- UNCITRAL
Live risk monitoring
Geopolitical, conflict and trade-route risk events for Asia-Pacific, monitored by our sister site Global Risk Monitor.
View Asia-Pacific risk monitor
Global Risk Monitor · Geopolitical and trade-route risk monitoring
11Step-by-Step
- 1Decide model and jurisdiction
- 2Confirm licences
- 3Prepare documents
- 4Incorporate
- 5Register for tax
- 6Open bank account
- 7Obtain operating licences
- 8Start operations
Generic steps without times or fees; rely on the facts and official sources on this page.
12Official Resources
Chinese official resources
Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices
- MOFCOM country investment guideMOFCOM · PDF (Chinese)
- Country tax guide (STA)State Taxation Administration · PDF
- Commercial office中华人民共和国驻斯里兰卡民主社会主义共和国大使馆经济商务处
- MOFCOM going-global platformMOFCOM
- Compliance & security alertsMOFCOM platform
Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.