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 are not included yet; see official statistics such as the World Bank.
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 AdministrationInland 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.