Board of Investment of Sri Lanka

Board of Investment of Sri Lanka
Name	Board of Investment of Sri Lanka
Type	Statutory agency
Founded	1978
Headquarters	Colombo

Board of Investment of Sri Lanka is the statutory agency established to promote and facilitate foreign direct investment, domestic investment and export-oriented industry in Sri Lanka. It was created under legislative reform to replace earlier investment promotion entities and to coordinate with agencies such as the Ministry of Finance (Sri Lanka), Central Bank of Sri Lanka, Sri Lanka Export Development Board, and provincial development authorities. The institution interacts with international organizations including the International Finance Corporation, Asian Development Bank, World Bank, Export–Import Bank of China, and bilateral partners such as Japan International Cooperation Agency, United States Agency for International Development, and Department for International Development.

History

The agency was founded in the late 1970s amid economic liberalization led by policymakers influenced by events such as the 1977 Sri Lankan parliamentary election and advisors from institutions like the International Monetary Fund and World Bank Group. Early engagement involved multinational corporations from markets such as Japan, United Kingdom, United States, Germany, France, Sweden, and Netherlands. During the 1980s and 1990s the agency coordinated projects tied to the Mahaweli Development programme, Norochcholai Power Station planning discussions, and infrastructure initiatives linked to ports like Port of Colombo and airports such as Bandaranaike International Airport. Post-conflict reconstruction after the end of the Sri Lankan Civil War saw renewed outreach to investors from India, China, Singapore, United Arab Emirates, Malaysia, South Korea, Thailand, and Qatar.

Mandate and Functions

The agency’s statutory mandate covers investment promotion, facilitation, and regulatory approval processes interfacing with entities including the Registrar of Companies, Urban Development Authority, Ceylon Electricity Board, National Water Supply and Drainage Board, and environmental authorities such as the Central Environmental Authority. It provides incentives under legislative frameworks related to acts passed by the Parliament of Sri Lanka and coordinates with ministries including the Ministry of Ports and Shipping, Ministry of Power and Energy, Ministry of Tourism, Ministry of Industries, Ministry of Lands, and Ministry of Transport. Functions include liaising with international investors represented by bodies like the Federation of Chambers of Commerce and Industry of Sri Lanka, Confederation of Indian Industry, American Chamber of Commerce in Sri Lanka, European Business Chamber and trade missions from delegations of the Government of Japan, United States Department of Commerce, and Ministry of Commerce (India).

Organizational Structure

The institution is governed by a Board of Commissioners appointed by the President of Sri Lanka in accordance with statutes debated in the Parliament of Sri Lanka. Executive leadership coordinates departments analogous to investment promotion agencies such as Invest India, UK Department for International Trade, Singapore Economic Development Board, and Malaysia External Trade Development Corporation. Divisions handle sectors like information technology, manufacturing, textiles and apparel, agribusiness, tourism, renewable energy, logistics, and real estate, working with state-owned enterprises including SriLankan Airlines, Ceylon Petroleum Corporation, Sri Lanka Ports Authority, and Airport and Aviation Services (Sri Lanka) Limited. The agency maintains regional offices that interact with provincial councils such as Northern Province, Sri Lanka, Eastern Province, Sri Lanka, Southern Province, Sri Lanka, and development agencies like Jaffna District Secretariat.

Investment Incentives and Regulations

Incentive schemes administered by the agency have included tax holidays, duty concessions, land leases, and special zoning coordinated with authorities such as the Board of Investment Law frameworks, customs authorities, and the Inland Revenue Department (Sri Lanka). Investment approvals consider environmental clearances under the Central Environmental Authority Act and land approvals interacting with entities like the Survey Department of Sri Lanka and Land Reclamation and Development Corporation. Regulatory interactions encompass bilateral investment treaties such as accords with China, India, United Kingdom, Germany, and Switzerland and adherence to standards from international bodies including the International Organization for Standardization and conventions administered by the International Labour Organization and United Nations Conference on Trade and Development.

Major Projects and Impact

The agency has been involved in facilitating large-scale projects such as port development at Hambantota Port, expansion at Port of Colombo, industrial zones near Katunayake and Biyagama, tourism initiatives in Galle, Trincomalee, and Negombo, and energy projects including collaborations for Lakvijaya Power Station and renewable projects with investors from Norway, Denmark, Germany, and China National Nuclear Corporation-linked proposals. Investment flows influenced exports in sectors tied to Apparel industry of Sri Lanka, tea exports linked to Mackwoods Limited histories, rubber processing, and agro-processing chains connecting to markets in the European Union, United States, Middle East and ASEAN. The agency’s facilitation work has impacted infrastructure financing involving financiers such as the Asian Infrastructure Investment Bank, China Development Bank, Japan Bank for International Cooperation, and private banks like Standard Chartered, HSBC, and Deutsche Bank.

Criticisms and Controversies

Critics have raised concerns about projects linked to foreign leases and sovereignty debates involving transactions with China Road and Bridge Corporation, controversies around Hambantota Port lease, allegations of non-transparent procurement similar to debates involving Sampur Power Station, and scrutiny from civil society groups such as Transparency International Sri Lanka and environmental NGOs including World Wide Fund for Nature and local activists in Galle and Jaffna. Parliamentary inquiries chaired by members of opposition parties and committees in the Parliament of Sri Lanka have examined compliance with statutes, fiscal incentives, and social impact in affected communities represented by trade unions like the Ceylon Workers' Congress and professional bodies such as the Bar Association of Sri Lanka.

Category:Investment promotion agencies Category:Organisations based in Colombo