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Why Sri Lanka
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[ Sri Lanka's potential ]

Strong Fundamentals will unleash Sri Lanka's potential

1st

Rank in South Asia for Human Capital Skills

Trainable & Flexible Workforce

2nd

In the region for Starting a Business / Doing Business 2020

BOI and Port City offer a one-stop-shop, further improving ease of doing business

28

Countries with which SL has signed Bilateral Investment Protection Agreements (IPA)

3X

Growth in number of graduates by 2025
Sri Lanka to be a knowledge-driven economy, doubling down on vocational training

2.1bn

Access to neighboring economies, with fast growing populations, for exports

1st

In South Asia for Quality of Life Index - 2019

13

Export Processing Zones with 5 more underway

2

Unique deep sea international ports in Colombo and Hambantota - set to revolutionise transhipment in South Asia

LOWEST

Power cost in South Asia as per JETRO Survey 2019

1st

Rank for “Travel Destination” by Lonely Planet in 2019

[ Wondering why Sri Lanka? ]

Sri Lanka: Asia's next Growth Haven

LOCATION

The island of Sri lanka lies in the Indian Ocean to the southwest of the Bay of Bengal. It is separated from the indian subcontinent by the Gulf of Manner and the Palk Strait and is located about 31 kilometers off the southerncoast of India.

5o north of the equator, in the heart
of South Asia, 5 1/2 hrs ahead of GMT.

WHAT'S IT LIKE IN SRI LANKA

It's a tropical paradise! Unparalleled scenic beauty in the central hills with the rest of the surrounding areas largely flat.

  • GDP per capita ~$4000 (2-3x of South Asia average) is expected to become 2X in next 10 years, offering attractive investment opportunities in Sri Lanka
    • Aggressive public investments in growth enablers and key infrastructure
    • Rapid increase in consumption-led growth
    • Exports set to increase from $20bn in 2019 to $30bn by 2025
    • Low interest rate regime
  • Colombo Stock Exchange is the fastest growing stock market in the region with $15bn in market capitalization and a 70% increase in new investor registrations in 2020 with zero capital gains and zero dividend withholding tax for foreigners
  • Sri Lanka to be a knowledge-driven economy with 3X growth in the number of graduates by 2025; ICT exports expected to grow by 2.5x by 2025
  • Government of Sri Lanka offers industry-leading incentives, low tax regime and consistent tax policy for 5 years
  • Regulatory, legal and state reforms underway to bring Sri Lanka to top 50 in “Ease of Doing Business”
  • Established economic hub with >2200 BOI companies (~1200 foreign companies) contributing to 85% of industrial exports
  • New SEZ law declared for Colombo Port City (an international business and services hub), with attractive fiscal incentives to make it comparable to likes of Dubai, Hong Kong and Singapore

[ Sri Lanka, Asia's next Growth Haven ]

Founded on Consistant Investment Policies and Incentive Frameworks

Stable policies

5-years of consistent policy environment outlined by 2021 budget

Reduced Corporate Income Tax

5-10 year tax holiday for select sectors

Customized incentives

For projects considered as “strategic development/ marquee investments”

100% Foreign Ownership

100% repatriation for earnings, dividend, fees, capital & forex

Zero Import Taxes

on capital & construction related items, raw materials and production/process related consumables for exports

Foreign Employment

Permitted for specialized skill categories

Tax Exempted for Expats

Income Tax on select employment exempted for a period of 5 years

Fast track

Cabinet sub-committee appointed to fast track investor facilitation

Special laws

Revamping BOI Act & Introducing new SEZ & Port City Law

[ Sri Lankan Stock Market ]

Upword Potential at the Colombo Stock Exchange

01

STRONG CURRENT MARKET POSITION

  • $15bn market cap with 282 companies
  • ~21% market cap to GDP
  • 22% foreign equity holding by value
02

FASTEST GROWING CAPITAL MARKET

  • Attractive index returns: 11% growth in benchmark ASPI in 2020; ASPI growth of 5% and highest turnover velocity at 45% as of March 2021
  • Ease of entry with low P/E ratio: 11 Sri Lanka vs 16 China as of 2020
  • Higher dividend yield: 2.7% compared to emerging markets in South Asia
03

RECORD-BREAKING PROFITABILITY AMIDST A GLOBAL PANDEMIC

  • Highest-ever quarterly consolidated profits in Q4 2020
  • Widening investor base backed by wide-scale digitization: 70% increase in new investor registrations in 2020
  • Significant capital raising interest: Largest IPO since 2011 by a Renewables MNC – oversubscribed 8x; first-ever SME IPO on the newly setup SME Listing Platform “Empower”
  • Higher profitability & lower valuations compared to frontier markets (Price-to-book ratio 1.12 & 8% RoE as of March 2021)
04

RESILIENT AND INVESTOR FRIENDLY REGULATORY SUPPORT

  • Tax exemption on capital gains, stamp duty and dividends
  • Investor settlement risk mechanism through proposed DvP system
05

TARGET INVESTORS

  • Foreign institutional investors focused on global equities, established funds from emerging markets, High Net Worth Individuals, non-resident Sri Lankans