Strategic Location

Sri Lanka is situated strategically at the crossroads of major shipping routes to South Asia, the Far East and the continents of Europe and America, making the country a convenient port of call for shipping lines and airfreight services.

Further, Sri Lanka’s proximity to the Indian sub-continent positions the country as a gateway to a market of 1.3 billion people. These factors have combined to generate keen interest in the country’s logistics sector, as well as from manufacturers looking for opportunities in the South Asian region

Investment Incentives

Fiscal Incentives

The Inland Revenue Act No. 24 of 2017 provides an Incentive Regime granting Zero and reduced Corporate Income Tax rates (for specific sectors) and Enhanced Capital Allowances; based on capital investments made by the investors, effective from 1st April 2018.

Zero percent CIT Rate

Standard CIT Rate – 24%

The following sectors enjoy 0% CIT rate from the year of assessment 2019/2020 • Agro Farming (w.e.f. 01 April 2019) • Information Technology and enabling Services • Export of Services o Rendered in or outside Sri Lanka o To any person to be utilized outside Sri Lanka and o The payment is received in foreign currency and remitted through a bank to Sri Lanka (May include; Commercial Hub Activities: front-end services, headquarter operations, logistic services for exports, Transshipment operations, Freight forwarding, Ship repair, ship breaking repair and refurbishment of marine cargo containers) • Gains and profits earned from any foreign source in foreign currency and remitted through a bank to Sri Lanka