Board of Investment
Opportunities in Sri Lanka
The Board of Investment (BOI) of Sri Lanka serves as the primary gateway for foreign and domestic investors, offering streamlined approvals, world-class industrial zones, and competitive incentives across high-growth sectors.
Sri Lanka’s Investment Landscape
Established in 1978 under BOI Law No. 4, Sri Lanka’s Board of Investment has become the institutional cornerstone of the nation’s investment ecosystem, facilitating billions in FDI across manufacturing, services, and infrastructure.
What is the BOI?
The Board of Investment of Sri Lanka is the principal investment promotion agency headquartered at Level 24, West Tower, World Trade Centre, Colombo 01. It functions as a central facilitation point for foreign and domestic investors, offering a near one-stop-shop for approvals, industrial zone access, and investor facilitation services.
In 2025, the BOI launched its Accelerator Program — a two-year action plan to strengthen institutional capacity, streamline approval processes, and position Sri Lanka as a globally competitive investment destination.
2025 Performance Milestone
The BOI achieved a landmark milestone in 2025 by surpassing the US$1 billion FDI target for the first time, with actual inflows reaching US$1,057 million — representing a 72% increase compared to 2024. This performance signals renewed global investor confidence in Sri Lanka’s recovery trajectory.
Of the total, 189 companies infused FDI, including 26 new investment projects. The BOI also approved 146 investment projects worth US$1,906 million for the full year.
📌 Strategic Note: Singapore led FDI sources at 30%, followed by India (20%), France (12%), Netherlands (11%), and Luxembourg (5%). Manufacturing attracted the largest share at 46%, followed by port development (26%), tourism (11%), telecom (6%), and property (5%). This geographic and sectoral diversification reflects broad international confidence in Sri Lanka’s investment climate.
Key Investment Sectors
The BOI actively promotes investment across nine priority sectors, each offering targeted incentive packages and dedicated facilitation pathways.
Infrastructure & Construction
The construction sector has recorded average annual growth of 7%. Priority areas include highways, sea ports, airports, industrial zones, mixed development projects, and renewable energy infrastructure.
Min. US$12.5M (large-scale)Healthcare & Medical Services
Growing healthcare demand drives opportunities in hospital construction and management, medical equipment manufacturing, pharmaceutical production zones, healthcare technology, and medical tourism infrastructure.
Min. US$500KUtilities & Energy
With 100% electricity accessibility and 98% grid connectivity, Sri Lanka offers power generation projects, water supply, waste management systems, renewable energy, and smart grid infrastructure. Commercial 5G is live nationwide.
Min. US$5MReal Estate & Urban Development
17 mixed-use development sites across Sri Lanka with pre-approved infrastructure connectivity. Major opportunities in Port City Colombo, Colombo Skyline projects, regional cities (Kandy, Galle, Jaffna), and urban regeneration.
Min. US$250K · 100% foreign ownershipManufacturing & Industrial Zones
16 Export Processing Zones with 285 companies generating US$3 billion in annual export revenue. Clusters specialising in textiles, pharmaceuticals, heavy industry, technology parks, and specialised industrial products.
Min. US$500K (export-oriented)Port & Logistics Development
Colombo is ranked the 17th best-connected port globally and the world’s fastest-growing port in 2024. Opportunities span Colombo Port expansion, Hambantota Port, free port operations, and marine services.
Strategic gateway positionInformation Technology
The ICT sector attracted significant FDI in 2024–25. With commercial 5G nationwide and a highly educated workforce, Sri Lanka is emerging as a regional technology services hub for data centres, software development, and BPO.
Rapidly growing sectorTourism & Leisure
Ranked 9th best destination by BBC Travel and awarded Best Island by Big 7 Travel 2025, Sri Lanka recorded over 1.1 million arrivals in H1 2025, with US$1.7 billion in earnings. Strong opportunities in hotels, resorts, and eco-tourism.
US$1.7B revenue H1 2025Pharmaceuticals
A dedicated pharmaceutical manufacturing zone at Hambantota with 400 acres and significant tax exemptions aims to meet 40% of Sri Lanka’s pharmaceutical needs, with potential for up to US$1 billion in annual exports.
Special tax regimeAdditional BOI-Promoted Sectors
Investment Categories & Minimum Thresholds
The BOI provides differentiated incentive packages based on investment category, sector, minimum capital commitment, and expected economic impact.
| Investment Category | Minimum Investment | Key Incentives | Status |
|---|---|---|---|
| Manufacturing (Export-Oriented) | US$500,000 | Tax holidays, duty exemptions, visa facilitation, EPZ access | Open |
| Large-Scale Infrastructure | US$12.5 million | Extended tax concessions, strategic project status, land facilitation | Open |
| Hospital Construction & Healthcare | US$500,000 | Special tax regime, medical equipment duty exemptions | Open |
| Utilities (Power, Water, Waste) | US$5 million | Long-term concessions, rate guarantees, off-take agreements | Open |
| Strategic Development Projects (SDPs) | US$15 million+ | Up to 25-year tax holiday, full customs exemptions, VAT exemption | Cabinet Approval |
| Real Estate Development | US$250,000 | Full foreign ownership allowed, long-term residence visa | Open |
| Retail Trade (Foreign Investor) | US$5 million | Operating license, standard BOI benefits | Min. Capital Required |
| Colombo Port City (BSI Status) | As specified by CPCEC | Full exemption from all taxes & duties for up to 25 years, 100% foreign ownership | Special Regime |
💡 Investment Snapshot: As of end-2025, the BOI has approved US$1,906 million in total investment for 146 projects, of which US$896 million is expected to flow as foreign capital — providing strong momentum towards achieving the US$1.5 billion FDI target for 2026. The pipeline includes the landmark Sinopec Oil Refinery (US$3.7 billion), which would be the largest FDI project in Sri Lankan history.
2025 FDI Breakdown by Sector
Manufacturing dominates with nearly half of all FDI inflows, reflecting Sri Lanka’s growing position as a competitive export manufacturing hub.
FDI Composition (US$1,057M)
Top FDI Source Countries in 2025:
🇸🇬 Singapore (30%) · 🇮🇳 India (20%) · 🇫🇷 France (12%) · 🇳🇱 Netherlands (11%) · 🇱🇺 Luxembourg (5%)
Export Processing Zones & Industrial Parks
Sri Lanka operates 18 Export Processing Zones (EPZs) under BOI administration, with 285 companies generating over US$3 billion in annual export revenue.
🏭 Katunayake EPZ
Western Province · Oldest and largest EPZ
- Adjacent to Bandaranaike International Airport
- 200+ companies operational
- Textiles, apparel, electronics
🏭 Biyagama EPZ
Western Province · High-tech manufacturing
- Proximity to Colombo port
- Electrical and electronic focus
- Auto components cluster
🏭 Koggala EPZ
Southern Province · Near Galle
- Access to Koggala Airport
- Gems and jewellery cluster
- Light manufacturing
🏭 Seethawaka EPZ
Western Province · Industrial hub
- Heavy industrial focus
- Rubber-based products
- Chemical manufacturing
🏭 Mirigama EPZ
Western Province
- Food processing zone
- Agro-industrial products
- Packaging industry
🏭 Malwatte Valley EPZ
Central Province · Kandy region
- Pharmaceutical manufacturing
- Central location connectivity
- Emerging tech services
📦 EPZ Benefits for Investors: All Export Processing Zones offer duty-free importation of project-related materials and production inputs, simplified customs procedures through BOI’s Import/Export Portal, Land Bank access for site selection, and dedicated BOI Industrial Relations Officers for labour support. Foreign investors receive the same treatment as local entities within EPZs.
The BOI Investment Process
The BOI offers a streamlined investment facilitation pathway, from initial inquiry to project commencement, supported by dedicated facilitation officers.
Initial Inquiry
Contact the BOI Investor Facilitation Centre or visit the online portal to explore opportunities and sector-specific information.
Submit Application
File an online investment application at application.boi.lk with a detailed business proposal, shareholding structure, and funding plan.
Project Screening
The Project Screening Committee reviews applications. Strategic Development Projects require Cabinet of Ministers approval with Minister of Finance recommendation.
Investment Agreement
Upon approval, a formal Investment Agreement is signed with the BOI outlining agreed incentives, conditions, timelines, and reporting obligations.
Commencement
Begin operations with ongoing BOI support, including visa facilitation, customs procedures, land access, and industrial relations assistance.
✅ Fast-Track for Qualifying Investors: The BOI’s BOI Accelerator Program provides expedited processing for high-impact projects. A dedicated Investor Facilitation Centre ensures reduced administrative hurdles and close coordination with line Ministries and regulatory agencies.
🌐 New in 2025–26: The BOI launched a Structured Investment Opportunities initiative identifying 20 structured projects for the first phase of structured investment promotion, including cannabis-based manufacturing, spices processing, data centres, and virtual Special Economic Zones (SEZs).
Investor Protections & Legal Framework
Sri Lanka offers a comprehensive suite of legal protections for foreign investors, underpinned by bilateral treaties, international conventions, and constitutional safeguards.
Bilateral Investment Treaties
Sri Lanka has signed investment protection agreements with 26–28 countries, including the United States (in force since May 1993). The Constitution gives ratified agreements the force of domestic law, providing strong contractual protections for foreign investors.
Double Taxation Avoidance
Sri Lanka maintains DTAAs with 38–45 countries, eliminating the risk of double taxation on investment returns. Key agreements exist with India, UK, USA, Singapore, and major EU member states.
ICSID & Arbitration
Sri Lanka is a member of ICSID and has ratified the 1958 New York Convention, ensuring international arbitration awards are recognized and enforceable. The Arbitration Act No. 11 of 1995 governs domestic enforcement.
Protection Against Expropriation
Since adopting economic liberalization in 1978, Sri Lanka has not expropriated any foreign investments. The Land Acquisition Act of 1950 mandates market-value compensation for any government acquisition.
Profit Repatriation
Sri Lanka permits 100% foreign ownership in most sectors, with constitutional guarantees for unrestricted repatriation of earnings, fees, and capital. All receipts by foreign investors in Government Securities are fully repatriable.
Free Trade Agreements
Sri Lanka maintains FTAs with India, Pakistan, Singapore (comprehensive), and Thailand (in force since January 2025). These provide preferential market access for goods manufactured in Sri Lanka’s EPZs.
Ready to Invest in Sri Lanka?
The BOI’s Investor Facilitation Centre is your single point of contact for all investment enquiries, approvals, and ongoing support. With a US$1.5 billion FDI target for 2026 and a pipeline of landmark projects, now is the time to position your investment in Sri Lanka.
Level 24, West Tower, WTC, Colombo 01
☎ +94-77-1211213
✉ info@boi.lk
🌐 investsrilanka.com
Sources & Citations
- Board of Investment of Sri Lanka (2026). BOI reports $1b FDI in 2025, up 72% YoY. Daily FT, January 23, 2026. ft.lk
- Board of Investment of Sri Lanka (2025). BOI Investment Guide, September 2025. investsrilanka.com
- Board of Investment of Sri Lanka (2025). Investment Incentives 2025. investsrilanka.com
- U.S. Department of State (2025). 2025 Sri Lanka Investment Climate Statement. state.gov
- Varners Law (2025). Doing Business in Sri Lanka 2025 – Law and Practice. Chambers Global Practice Guides. chambers.com
- Board of Investment of Sri Lanka (2026). BOI 2025 Numbers. dgi.gov.lk