With a domestic market of only 20 million consumers with a modest per capita income, Sri Lanka needs to look beyond its borders and increase its global competitiveness to sustain high and long-term growth. The strong economic performance of Sri Lanka has lifted the per capita income substantially. The government has planned to transform Sri Lanka into a strategically important five economic hub; a knowledge hub, a commercial hub, a naval and maritime hub, an aviation hub and an energy hub by taking into consideration Sri Lanka's strategic location. The areas described below will give you a good insight of our island:
- Rapid development in infrastructure Sri Lanka is growing in areas of trade, apparel, railway, logistics, etc. Major investments from China have given Sri Lankan government a good opportunity in developing the infrastructure, such as a rapid transformation of Katunayaka airport is one example. This in turn is supported through IFC (The World Bank's International Finance Corporation) for private sector firms. More revenue generated by firms, then more income for government in the form of tax and thus more investment in infrastructure facilities.
- Supportive government policies, Government policies have been established to encourage foreigners to invest directly in Sri Lanka, and there are no restrictions on repatriation of earnings, fees, capital, and on forex transactions relating to current account payments. These policies ensure safety investment for foreigners, avoidance of double taxation, strict regulations for prerequisite business law enactments and bilateral investment protection agreements with 28 countries.
- Educated and adoptable workforce Sri Lanka is one of the countries where the market consists of the majority of educated youth with the right knowledge and experience to work in the Sri Lankan economy and sort out client issues. The Sri Lankan government ensures that their population is getting the right education to keep them on the right track at career growth, and huge investments are being made in Sri Lanka for good schools and universities and other private institutions for professional courses to be conducted. Thus, the workforce are very friendly, flexible, motivated and highly talented professionals.
- Improved social infrastructure and quality life Sri Lanka has bought up many luxury apartments at suitable prices for the foreigners who want to live a comfortable life here, it is not only limited to this, but also our country’s government is investing in roads, parks, airport, and restaurants to make sure not only our residents but also the non-residents are benefiting to the maximum with their favourite foods, education, accommodation and other training prospects.
- Location and connectivity with international air and maritime routes Sri Lanka is very famous for enabling cross border trade over a very long period of time. Sri Lanka’s location enables the country to provide quick and efficient global and regional connectivity to move cargo to and from Asia to the rest of the world and cargo from large vessels is transhipped via Sri Lanka where smaller vessels carry the cargo to other ports in the region and Colombo port saves time compared to transporting via Singapore.
- Vibrant and modern business environment Since, Sri Lanka has become the largest country to promote foreign investments, they are very familiar with the changing rules and regulations every year, and they will ensure that the foreign firms are benefiting by making a real growth in their business. Our country has many expertise that are familiar in advising foreigners with any issues they come up with and will give their maximum to support the foreign firms. Hence, in this way we are very active in the operations of the business activities.
- Investment protection and double taxation -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; Sri Lanka has signed bilateral Investment Protection Agreements (IPA) with 28 countries. The country has a very independent system of courts which can redress any concerns of investors, and Sri Lanka also has bilateral Double Tax Avoidance Agreements with 38 countries.