Sri Lanka’s BOI to incentivize expansions by existing investors
Daily FT: The Board of Investment (BOI) will be launching a new program for investor retention and expansion as well as a special “100 IT/ITES Companies” initiative.
BOI Chairman Dinesh Weerakkody said the investor retention program is targeted to encourage existing investors to retain their profits and reinvest/expand their business operations within the country. Under this initiative, existing BOI registered companies, with over 5 years in operation will be eligible to import an Electric Rechargeable Vehicle subject to the exemption of application of custom tariff up to an amount not exceeding $ 30,000, on the Cost, Insurance and Freight (CIF) value, upon fulfilling the qualifying criteria of investing an additional $ 3 million and generating a minimum of 50 employment opportunities through the expansion project. This is an addition to the duty-free imports of Raw materials, visa concessions and prevailing Enhanced Capital Allowances under the IR Act, including fast-track approvals.
Furthermore, BOI is hoping to commence a promotion campaign to attract 100 IT/ITES Companies with the assistance of the Private Sector.
This project is to encourage existing ICT companies to expand and to attract new enterprises engaged in Information Technology (IT), Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO), Business Process Management (BPM), Data Analytics and AI/ML, and E-commerce set up in the country.
Under this initiative, an ICT company that invests a minimum of $250,000 and generates 50 new local employment opportunities out of which 15 employees should be technically qualified will be granted a permit for the importation of one Electric Rechargeable Vehicle subject to the exemption of the application of custom tariff up to an amount not exceeding $ 30,000, on the Cost, Insurance and Freight (CIF) value. This will be in addition to the regular incentives offered by the BOI and under the IR Act. Deepening of the talent pool will be tied up to the campaign, Weerakkody added.
He said a new Public Private Partner initiative is expected to drive exports, create new job opportunities, technology transfer and knowledge transfer, and enhance the country’s digital infrastructure and position Sri Lanka as a competitive player in the global ICT industry.
Furthermore, Weerakkody noted it will improve organizational and managerial skills and stimulate domestic investment across several sectors.
OSL take:
Sri Lankan authorities are focused on further expanding business/investment opportunities in the country. While Sri Lanka is being promoted as a business destination in the South Asian region by the country’s missions overseas, local authorities have prepared many incentive schemes for foreign businesses/investors exploring opportunities in the country. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country also add to the country’s attraction as an emerging business destination in the region. Sri Lanka’s economic conditions have greatly improved since the many challenges faced by the country during the past few years with many businesses in the country’s private sector recording profits despite the challenging economic conditions. All these are indicative of the resilience of the country’s overall economy, the country’s growing business potential and the expanding business/investment opportunities. Foreign businesses/investors could therefore explore the expanding opportunities in Sri Lanka while also looking at the possibility of forming partnerships or joint ventures with local businesses with the aim of further expansion locally and internationally.
| Article Code : | VBS/AT/20231006/Z_3 |