Investment Opportunities available in Sri Lanka – High Commission of the Democratic Socialist Republic of Sri Lanka in the United Kingdom (2024)

FAQs

What is the best investment in Sri Lanka now? ›

Investors are provided with preferential tax rates, constitutional guarantees on investment agreements, exemptions from exchange control and 100% repatriation of profits & capital.

Sri Lanka is the one of the safest countries in the world to invest in due to a number of mechanisms in place to protect investors. Article 157 of the island's constitution guarantees the safety of investment protection treaties and agreements approved by parliament by a two thirds majority.

Over the last decade, China has invested about $3 billion in Sri Lanka, accounting for nearly a quarter of its FDI, while India made up about $1.3 billion. In the last two years, India took the lead, followed by the United Kingdom in 2022 and Netherlands in 2021.

Opening a securities account to trade on the Colombo Stock Exchange is a straight forward process. All foreign institutional and individual Investors are required to open a Securities Investment Account (SIA) via a local custodian bank.

Sri Lanka is a growing economy and is among the emerging markets of Asia, making it an attractive invest- ment destination. Sri Lanka's GDP per capita, currently 2-3x of South Asia's average, is expected to double over the next 10 years.

Foreign portfolio investment is encouraged. Foreign investors can purchase up to 100 percent of equity in Sri Lankan companies in permitted sectors. Investors may open an Inward Investment Account (IIA) with any commercial bank in Sri Lanka to bring in investments.

What is the FDI trend in Sri Lanka? ›

Data are in current U.S. dollars. Sri Lanka foreign direct investment for 2022 was $0.90B, a 51.66% increase from 2021. Sri Lanka foreign direct investment for 2021 was $0.59B, a 36.45% increase from 2020. Sri Lanka foreign direct investment for 2020 was $0.43B, a 41.61% decline from 2019.

Weak institutional environment, poorly managed exchange rate policy and poor infrastructure appear to be major issues in terms of boosting future FDI inflows to Sri Lanka.

Historically, the Sri Lanka Stock Market (CSE All Share) reached an all time high of 13593.04 in January of 2022. Sri Lanka Stock Market (CSE All Share) - data, forecasts, historical chart - was last updated on May 28 of 2024.

Treasury Bills. The Government of India issues Treasury Bills to raise funds for up to 365 days. It is considered an investment with the best returns. Since the government gives these, they are considered very safe.

ATMs often offer much better rates than exchange bureaus, as long as you choose to be charged in the local currency. Withdrawals in Sri Lankan Rupees are calculated using the mid-market rate.