Während der Informationsveranstaltung am 13.03.2019 in Berlin zum Thema "Nachhaltige Mobilität, Verkehrs-/ÖPNV-Lösungen und Logistik in Sri Lanka" präsentierte Herr Andreas Hergenröther, Chief Delegate der Delegation der Deutschen Wirtschaft in Sri Lanka den Exportmarkt Sri Lanka. Die Informationsveranstaltung diente der Vorbereitung zur Geschäftsanbahnung nach Sri Lanka, welche vom 24.06. - 27.06.2019 im Rahmen des Markterschließungsprogramms des Bundesministeriums für Wirtschaft und Energie stattfinden wird. Insbesondere werden deutsche Unternehmen in Sri Lanka gesucht, die Produkte im Bereich nachhaltige Mobilität und Transportsysteme anbieten und somit Ihren Export nach Sri Lanka starten. Weitere Informationen zur Geschäftsanbahung finden Sie über: http://energiewaechter.de/yourls/meplka2019
2. SRI LANKA AT A GLANCE
Capital (Commercial) Colombo
Capital (Administrative) Sri Jayewardenepura Kotte
Area 65,525 sq km
Population 21.6 million(July 2018 est.)
Official Language Sinhala, Tamil
Currency Sri Lanka Rupee (LKR)
Time Zone UTC/GMT+5:30
www.srilanka.ahk.deSource: Central Bank of Sri Lanka, Factbook
4. ECONOMIC FIGURES 2018
Gross Domestic Product USD 92.5 billion (3.8% growth vs 2017)
GDP per capita USD 4,065
FDI Inflows USD 2.3 billion
Exports USD 17 billion
Inflation 6%
www.srilanka.ahk.deSource: Central Bank of Sri Lanka
5. ECONOMIC GROWTH
68.4
74.2
79.3 80.5 81.7
87.2
92.5
0
10
20
30
40
50
60
70
80
90
100
2012 2013 2014 2015 2016 2017 2018
US$Billion
Gross Domestic Product
2014 2015 2016 2017 2018
5.0 5.0 4.5 3.1 3.8
Real GDP Growth (%)
www.srilanka.ahk.deSource: Central Bank of Sri Lanka
6. EVOLUTION OF FOREIGN DIRECT INVESTMENT
933
894
680
897
1375
0
200
400
600
800
1000
1200
1400
1600
2013 2014 2015 2016 2017
US$Million
Foreign Direct Investment Inflows(excluding loans)
Foreign Direct Investment of BOI Enterprises
(US$ million)
www.srilanka.ahk.deSource: Central Bank of Sri Lanka & Board of Investment Sri Lanka
7. SRI LANKA’S DEBT SITUATION
www.srilanka.ahk.de
• Sri Lanka’s debt
- 78% of its GDP
- 60% of its GDP foreign debt
- $ 5.9 bn due 2019, $ 2.6 bn in the first quarter
- Loan repayments between 2019-22 around $ 21 bn
• Sri Lankas’s lenders
- China: 14%
- Japan: 12%
- ADB: 14%
- WB: 11%
8. EVOLUTION OF EXPORTS
9.2
9.9
11
10.2 10.2
11.4
0
2
4
6
8
10
12
2012 2013 2014 2015 2016 2017
US$Billion
Total Exports Country Value in
USD Mn
United States 2,920.21
United Kingdom 1,043.17
India 789.58
Germany 771.5
Italy 531.65
Top Export Destinations 2017
www.srilanka.ahk.deSource: Trade Map, Federal Statistics Office, Sri Lanka Export Development Board & CBSL
(p) Provisional numerical value
9. MAIN EXPORT PRODUCTS
Textiles and Garments (44.3%)
Tea (13.5%)
Rubber and Rubber products (7.7%)
Spices 3.6%
Petroleum Products 3.8%
www.srilanka.ahk.deSource: Central Bank of Sri Lanka & Sri Lanka Export Development Board
10. MARKET ACCESS IN REGIONS
Sri Lanka seeks to increase its access to the world’s most important markets in order to
consolidate itself as the ideal export platform
Agreement Countries and Partners
Free Trade Agreements – Bilateral India, Pakistan, Singapore, China(Negotiation)
Free Trade Agreements – Multilateral South Asian Association for Regional Cooperation – SAARC
Agreement on South Asian Free Trade Area - SAFTA
Asia Pacific Trade Agreement – APTA
Agreement on Global System of Trade Preferences - GSTP
Generalized System of Preferences Plus European Union countries
Generalized System of Preferences United States
www.srilanka.ahk.deSource: Central Bank of Sri Lanka & Sri Lanka Customs
12. BILATERAL TRADE BETWEEN SRI LANKA AND GERMANY
0
100
200
300
400
500
600
700
800
2013 2014 2015 2016 2017 2018
EURMillion
SL Exports to Germany SL Imports from Germany Trade Balance
EUR Million
Source: Central Bank of Sri Lanka & Sri Lanka Export Development Board www.srilanka.ahk.de
Year SL Exports to
Germany
SL Imports from
Germany
Trade Balance
2013 450 253 197
2014 481 217 264
2015 529 285 244
2016 577 315 262
2017 653 570 83
2018* 701 355 346
* Forecast deviations due to rounding
13. SRI LANKA’S APPLICATION FOR EU GSP+
www.srilanka.ahk.deSource: Sri Lanka Export Development Board & EU Sri Lanka
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2017 after
GSP+
Sri Lanka’s Export to the EU Region 2006-2017
in USD Mn.
14. OPPORTUNITIES
Maritime Sector
Sri Lanka’s location gains competitive advantage in the naval and maritime industries.
www.srilanka.ahk.deSource: Board of Investment Sri Lanka & Colombo Port Authority
2.5%
Contribution to National GDP(2017)
Expect 6% contribution by 2030
750 local shipping and freight forwarding
and clearing agents
More than 19% year-on-year growth
(Transshipments 2017-2018)
11 million TEUs per year
(After completion of the East Container Terminal )
Further developments of the CICT terminal (198 meters extension
towards West Terminal)
- Enhance the deep water capacity and call for bigger ships
- Infrastructure developments in the terminal
Significant opportunities in the port of Hambantota
- Expect to create one of the lucrative transshipment hubs with the
strategic location
15. CICT
Entrance
Channel
Entrance
ChannelPort of Colombo
CICT SAGT JCT/UCT
Draft in m 16m 14.25m 14.25m
Yard Area in ha 37 20 30
Quay Length in m 1,200 940 2,232
Capacity in TEU 3,000,000 1,800,000 3,100,000
Volume 2017 in TEU
2,388,528 1,809,823 2,010,413
Market Share 2017 38% 29% 32%
16. • Container handling 2018: 7 Mio. TEUs
• First half 2018 showed a growth of 15.6% TEUs
• Transshipment volumes increased by 19.3% world's fastest growing port
in 2018, followed by Singapore
• 22nd position in the global container port-league
• ranked the 11th best connected port in the world
• 10 Mio. TEU target by 2020
• Existing capacity of 8Mn plus TEU (Deep draft 3Mn)
• The only deep draft (18m) facility in South Asia
• Additional deep draft (18m) capacity pipeline (ECT, WCT1 &WCT2)
• Potential to increase capacity to over 17Mn TEU with current
superstructure
• Proof of concept efficiency of average 32-34 mph/crane
PORT OF COLOMBO IN FIGURES
Projected Terminals including CICT in Colombo Port (an illustration)
17. OPPORTUNITIES
www.srilanka.ahk.deSource: Board of Investment Sri Lanka & Colombo Port Authority
Ports in the region and deviation hours from
trade routes
Time at Sea from Colombo, Sri Lanka to the busiest ports of
Europe
Port of Colombo Perspective
18.
19. • Route used by approximately 60,000 ships each year
• Can offer comparatively shorter timelines to any destination in the region and easy and fast connections
to any of the major regions in the world
20. • Leased for 99 years by the China Merchant Port Holding
• Current Capacity:
• Container: 198000 TEUs
• Break Bulk: 950000 tons
• Bulk Cargo: 2.5million tons (including 1.6 million tons’ cement)
• RO-RO: 396000 units
• Capacity: to berth 12 vessels
• LPG-termial: total storage exceeding 60,000 cubic meters
• RORO, bulk, break-bulk, container, cruise, ship-to-ship transfers (STS), ship layups and
naval vessels
• Capability and structure to handle almost any type of cargo
PORT OF HAMBANTOTA INTERNATIONAL
PORT (HIP) IN FIGURES
21. • Services such as crew changes, provision supplies, ship spares, ship stores, minor repairs and similar ship supply
services compulsory for vessels.
can be delivered to a travelling vessel using a service boat (no similar facility from the Red Sea to the far east)
• Intention to build its own dedicated LNG terminal in approximately 3 years time.
• Building of a LNG power plant
• Soon to commence bunkering facilities - located between two major bunkering ports, Singapore and Fujairah is a
strategic advantage (no need to travel off course; lower prices)
• RORO operations and other port related services, targeting the African and South American vehicle markets are
being further diversified
BUSINESS PLAN FOR HIP
22. • looking at partnering industrialists to develop port related industries, esp.:
vehicle manufacturing
value additions
Packing
distribution centers
bonded storage for various type of cargo
integrated logistics
sea to air segment
Cement, fertilizer and flour manufacturing and distribution
• Mattala International Airport located just 30 minutes from HIP
BUSINESS PLAN FOR HIP
23.
24. • Smart port solutions
Modernization of information technology
Automation solutions
Sri Lanka’s ports and shipping ministry announced to set aside 929 million rupees to
modernize the Port of Colombo
• Construction of new terminals
• Seabed- and offshore-engineering
• Supply-Chain-Management
• Cold Chain
• Warehousing solutions
• Transshipment and port-bonded logistic-infrastructure
BUSINESS OPPORTUNITIES
25. • Services
Ship building and repairing services; supply of spares
Maintenance services
Bunkering service
Supply of food, water and other goods
Ship chandler
• Renewable energies
e-mobility, eg. Electric or hydrogen driven industrial trucks
Efficient usage of solar power
• Clearing
IT-Systems
BUSINESS OPPORTUNITIES Cont’d
28. Railways
• Colombo Suburban Railway Project
Currently at Design Stage
Focused towards passenger and freight demands for Sri Lanka Railways by 2025 and 2035
Funded by the Asian Development Bank (ADB)
Considered projects:
Construction of 105 Km of additional tracks
Rehabilitation of 210 Km of existing tracks
Development of Railway Stations and Multi-model Centres
Replacing signaling systems
Development of maintenance facilities
Acquisition of new Rolling Stock (locomotives, carriages, wagons)
A high-speed rail system is proposed to connect from the city of Negombo to city of Colombo via BIA airport b
an electrified high-speed rail link to Colombo Fort where it will link to the proposed Colombo Monorail.
SRI LANKAN RAILWAY IN FIGURES
29. • Power transition from Diesel to Electric
• Infrastructure development
freight services and infrastructure required especially for the movements of port related cargo
• Storing solutions
• Ensuring the safety of train operations
• Services regarding passenger needs
Accommodation facilities
Catering services
Supply at railway stations
FURTHER BUSINESS OPPORTUNITIES IN RESPECT
OF RAILWAY MODERNIZATION
30. Transport sector generates:
10% of BIP (2015)
6% of employment (2015)
Main mean of transportation: Bus (45%)
Average driving speed in Colombo: 20km/h; 5-8 km/h (rush
hour)
Although only 45 % of Sri Lankans use a privat vehicle,
it is responsible for 62% of the traffic.
16 % of imported goods is fuel
The transport sector is responsible for
more than 50% of the greenhouse gas emissions.
TRANSPORTATION
31. In 2015 the Government increased the funding of electric vehicles noticeably. Subsequently an ascent of registration
of electric vehicles has been observed.
2017 the Government announced publicly, that by
2025: all government owned vehicles and
2040: all private vehicles
shall be replaced by electronic and hybrid models. This will be promoted by public tax reliefs.
Sri Lanka is doing research on solar-powered auto rickshaws, which are commonly used in the country.
The Sri Lankan Government plans the implementation of electric and hydrogen driven busses.
2019 tender proceeding for 800 hydrogen busses
Long term goal is the conversion to hydrogen propulsion.
SUSTAINABLE APPROACHES:
32. Another point of focus is the extension of e mobility. Especially the development of a efficient electric
vehicle charging stations system is a top priority. Particularly the east of the country need to be upgraded.
Subsidies for inefficient fuels will be reduced. By 2050 Sri Lanka wants to achieve a full supply by renewable
energy.
ELECTRIC VEHICLE CHARGING CENTERS
33. • 32.5km north of the commercial capital Colombo
• Operator: Airport and Aviation Services (Sri Lanka) Ltd.
• Hub for: Cinnamon Air, Millennium Airlines, SriLankan Airlines, SriLankan Cargo;
37 airlines currently serve the airport
Stats 2018
• Passenger Movements: 10.796,411
• Air Freight Movements (MT): 268,317
• Aircraft Movements: 66.843
Single runway (04/22): 3.441m take-off, 3.350m landing distances
In operation: Terminal 1, international terminal, 12 gates, built in 1967
Terminal 3, domestic terminal, opened November 2012
Cargo Terminal opened October 2009
Planned: Terminal 2, new international terminal, 8 gates, expected to be completed in 2019
BANDARANAIKE INTERNATIONAL AIRPORT
34. INVESTMENT PROTECTION
www.srilanka.ahk.deSource: Board of Investment Sri Lanka & Parliament.lk
• Sri Lanka has signed Bilateral Investment Protection Agreements (IPA) ------- 28 countries
( Ex: Australia, Germany, Denmark, France, Sweden)
• Sri Lanka also has Bilateral Double Tax Avoidance Agreements (DTAA) -------- 42 countries ( Ex:
• A founder member of the Multilateral Investment Guarantee Agency (MIGA)
36. TYPES OF COMPANIES
www.srilanka.ahk.de
Private Companies
• A private company must consist of at least one and not more than fifty
members.
• It must have at least one director.
• A private company cannot invite public subscription for its shares.
Public Companies
• At least seven members are required(there is no upper limit).
• It must have at least two directors.
• Public companies may invite public subscriptions for their shares or
debentures and other securities, and can also be listed on the stock
exchange.
• They cannot commence business without a business commencement
certificate.
Offshore Companies
• A company registered within or outside Sri Lanka may register itself in Sri
Lanka as an offshore company to carry on any business outside the shores
of Sri Lanka.
• If a company registered outside Sri Lanka registers itself as an offshore
company, it is deemed to have been incorporated in Sri Lanka.
• An offshore company cannot conduct any business in Sri Lanka
Sri Lanka Companies Act No 7 of 2007
Source: Department of Registrar of Companies & Companies Act No 7 of 2017
37. TYPE OF COMPANIES
www.srilanka.ahk.deSource: Department of Registrar of Companies & Companies Act No 7 of 2017
Joint Venture Company
• A joint venture can be with other Sri Lankan companies or
foreign entities.
• A joint venture business may be incorporated or carried on as
an unincorporated business similar to that of a partnership.
• Joint ventures have become popular in recent years;
particularly in export oriented projects.
Subsidiaries
• To establish a business in Sri Lanka foreign companies can
incorporate as a local subsidiary company.
• A subsidiary in Sri Lanka must comply with all statutory
requirements imposed on domestic companies.
Branches
• A company incorporated outside Sri Lanka may establish a place
of business in Sri Lanka by registering a branch office with the
Registrar of Companies.
• Applications for registration must be made within one month of
establishing a place of business in Sri Lanka.
• Generally approval from the relevant line ministry would be
required before the registration can be completed.
• The liability of a branch extends to its foreign assets.
Liaison / Representative Offices
• A company incorporated outside Sri Lanka may maintain its
presence in Sri Lanka through a representative office, and is of
similar status to that of a branch office.
• Company is prohibited from engaging in any trading or
investment activity or accruing any turnover in Sri Lanka.
• No tax incident arises since it is not permitted to trade.
38. TAX SYSTEM IN SRI LANKA
www.srilanka.ahk.de
Personal Income Tax
• Tax Free Allowance
LKR 500,000 for all sources of income Additional
tax relief of LKR 700,000 for employees only
• Rates of Tax – 2018/2019
Taxable
Income (LKR)
Rate
%
Cumulative
Tax (LKR)
First 600,000 4 24,000
Next 600,000 8 72,000
Next 600,000 12 144,000
Next 600,000 16 240,000
Next 600,000 20 360,000
Balance 24
Withholding tax on
interest
Rate %
Assessable income -
Interest paid to a resident
person (other than senior
citizen
15
Interest to non-resident
person
14
Rent paid to Resident
person
10
All other cases including
non-resident person
14
Corporate Income Tax
On profit and Income Rate %
Small and Medium enterprise 14
Company predominantly
conducting a business of exporting
goods & services
14
Company predominantly conducting
an agricultural business
14
Company predominantly providing
educational services
14
Company predominantly engaged
in an undertaking for the promotion
of tourism
14
Company predominantly providing
information technology
14
Persons engaged in betting &
gaming, liquor or tobacco business
40
Companies other than taxable at
40% and 14%
28
On dividends distributed 14
Remittance of profits 14
• Withholding Tax
Source: Department of Inland Revenue Sri Lanka
Value Added Tax (VAT)
• Standard rate – 15%
• Exports & specified international services - zero rated Registration
Threshold for VAT is Rs 3Mn per Quarter or Rs 12Mn per annum
39. TAX SYSTEM IN SRI LANKA
www.srilanka.ahk.deSource: Department of Inland Revenue Sri Lanka
Nation Building Tax (NBT)
• 2% is payable by importers, manufacturers, service providers on their
turnover and wholesalers & retailer on 50% of their turnover.
• Registration Threshold
Liable turnover Rs 3 Mn per quarter or Rs 12 Mn per annum
Telecommunication Levy - 25%
Share Transaction Levy (STL)
• Payable by every buyer and seller on the turnover of every
share trading transaction conducted through a stock exchange
at 0.3% on the turnover
40. COMMERCIAL AGENCY IN SRI LANKA
www.srilanka.ahk.deSource: Department of Foreign Exchange, Law of Agency in Sri Lanka
• A relationship of principal and agent as known in English law can be determined by private contract.
• According to the previous Exchange Control Act, there was a provision for Agency which represents a foreign company,
that has to be approved by the Controller of Exchange in Sri Lanka. But, according to the Foreign Exchange Act No. 12 of
2017, there is no any provision for Agency.
Duties of an agent to his principal
• The Agent must follow the Principal’s instructions
• The agent must act in person and not delegate his duties
• Agent’s duty to exercise reasonable diligence, care and skill
• Agent’s duty to maintain accounts
• Agents duty to act in the Principal’s interest
Duties of the Principal towards the Agent
• The right to remuneration
• The right to an indemnity
• The right to exercise a lien
41. YOUR WINDOW TO BUSINESS WITH SRI LANKA
Delegation of German Industry and Commerce in Sri Lanka
• Market Access Support (Partner searching, Market information, Market studies)
• Trade Fair Support (Consultancy and Information)
• Legal Information
• Debt Collection and Mediation
• Vocational and Continuous Training
• Public Relationship Support
AHK Sri Lanka was officially inaugurated on 27th March 2018, with
the purpose of enhance the bilateral economic relationship
between Germany and Sri Lanka,
www.srilanka.ahk.de
Sri Lanka is a tropical island nation in the Indian Ocean and it is also called as the pearl of the Indian Ocean. Within a mere area of 65,525 sq kilometers 22.5 million people are living.
Democratic Socialist Republic of Sri Lanka has a presidential republic government type. As everyone knows, Colombo is the commercial capital in Sri Lanka and Sri Jayawardenepura kotte is the administrative capital.
Since Sri Lanka is a multi ethnic country, the official languages are Sinhala and Tamil. However, English are widely spoken throughout Sri Lanka, with the exception of remote villages where it might be Sinhala only or Tamil only.
Sri Lanka follows the decimal currency system in Rupees and both Currency notes and coins are available
The island's strategic location in the Indian Ocean, intersecting with the sea routes which was known as the Silk Road, between Europe and the Far East, gives it an strategic advantage as a global logistics hub.
Here is a graphical illustration of GDP of Sri Lanka in last six years.
It clearly shows, The Sri Lankan economy has grown at a moderate pace of 3.1% in 2017, compared to the growth of 4.5% in 2016. notably, contribution of agriculture sector was not strong enough to stimulate a positive GDP growth rate in last year. Specially, sever drought condition in cultivation areas affected the domestic production adversely. However, Industry and Services activities contributed positively to economic growth even in the backdrop of spillover effects from subdued agriculture performance.
As in figures
Agriculture contribution to GDP 7.7%, Industry sector 27.2% and
The first graph shows the FDI inflow without loans to the companies registered under BOI. In 2017, it recorded over USD 1 billion with high foreign investment of China and Singapore respectively USD 407 million and USD 241 million.
Germany investment USD 6 million in 2017
According to the BOI, FDI inflows including loans to companies registered under BOI, amounted to US dollars 1,710.3 million in 2017 as compared to US dollars 801 million in 2016, reflecting a significant year-on-year growth of 113.5%.
The main reason for this notable increase in FDI was the infrastructure projects amounting to US dollars 1,043.5 million, which is
recording a growth of 207.4%. Specially because the Hambantota port and other housing developments.
The second graph shows the sectors which are were highlighted in FDI inflows
Earnings from exports increased by 10.2% to USD 11.4 billion in 2017 by recording the historically highest value in terms of earning.
After regaining the EU GSP +, this is a remarkable achievement in the external sector development.
In addition, the increase in export was supported by expansion in export related industries, increased commodity prices in the international market and the flexible exchange rate policies maintained by Central Bank of Sri Lanka.
Among top exports products, Tea, Apparel, Rubber products, Spices and Petroleum products took the lead in 2017.
These are the top export destinations of Sri Lanka. USA took the lead as usual and Germany stands at 4th place by recording USD 771.44 million export value.
Top five export products,
Textiles and Garments exports in value USD 5,031.9 million and the share of total export 44.3%. Sri Lanka does marketing with this apparel brand.
Tea export value is USD 1,529.8 million and it is the second highest contribution to export revenue (13.5%)- Sri Lanka has a geographical indication called Pure Ceylon tea and this is the brand for
Rubber and rubber products recorded USD 864.3 million
Petroleum products and Spices took 4th and 5th places by recording USD 434.3 million and USD 406.2 million respectively.
As an export promotion initiative, Pure Ceylon cinnamon logo is being promoted since Sri Lanka provides the best cinnamon products to the world market.
Sri Lanka has potentials to extend market access to over 1.4 Bn population in Asia.
Except China and Singapore bilateral agreements, other two agreements are activated. Singapore agreement has already been signed by two parties but waiting for some regulatory changes like anti dumping laws. Agreement with China will take few months to finalize as some of the areas have to be revised.
Sri Lanka has few multilateral agreement with country association like SAFTA, SAARC
Next, Sri Lanka was qualified for the GSP+ concessions in 2016 and now exporters are being benefited by tariff relaxations
Finally, US GSP was removed in 2017 and it was regranted and activated from April 2018
Among top import products of Germany, Apparel and Rubber products took the lead by acquiring 38% and 11% share of total imports respectively.
Since 2013 Sri Lanka has been maintaining a positive trade balance with Germany.
As depicted in this Ariel view, Port of Colombo consists of two basins; on your right is the Original harbor with a Dredged depth and access channel of 15 m with the ability to handle Ships with a draught of less than 14.25m
Highlighted in Red is JCT the Government Operated Terminal, to the naked eye you can observe a kink in the quay which limits utilisation of the Quay.
Highlighted in Blue is SAGT with a berth of 940m. SAGT has a linear berth which enables optimization of the quay
Onto your left is the deep draught basin with CICT being the only Terminal operator with the ability to handle vessels with a draught of 18m.
Year on year Port of Colombo (POC) grew at a robust 11 percent in 2016, with
SAGT growing at 19 per cent achieving 1.6 Million TEUs, yet again surpassing its original design capacity of 1.2 Million TEUs,
CICT growing at 28 per cent, fulfilling 2 Million TEUs of its designed capacity of 2.4 Million TEUs
JCT holding its position as the market leader with a throughput of 2.1 Million In 2016
Each terminal has a Differentiated Value Proposition to offer to the International Maritime community;
JCT is retaining its Market leadership position; flexibile with minimum restrictions in terms of cut off times; which may lead to lower productivity in quay side performance
SAGT most productive terminal, known for its world class productivity and reliability
CICT deep draught Terminal; only one in SA
Movement of ITT as an integral part of a hub port. SAGT’s central location making it a strategic feeding terminal to the emerging new PoC.
Sri Lanka is concerned as one of the safest countries to invest in the world. There some mechanisms to protect international and local investors.
The 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 singed Bilateral investment protection and Double tax avoidance agreement with many countries.
For instance, Sri Lanka has signed bilateral Investment Protection Agreements with Australia, Germany, Denmark, France, Sweden and other 23 counties. Also 42 countries for bilateral Double Tax Avoidance Agreements
Sri Lanka is a founder member of the Multilateral Investment Guarantee Agency (MIGA), which is an investment guarantee agency of the World Bank.
The new Companies Act No. 7 of 2007 was enacted by the Parliament in 2016
There are three main categories under the provisions of the Companies Act.
Out of these main three, limited companies are important and popular in the corporate world.
According to Department of Inland Revenue, Sri Lanka's new Inland Revenue act No. 24 of 2017 aims at simplifying the taxes and ease the burden on the low-income people in the country. The new act came into effect from 1st of April 2018.
The law governing agency in Sri Lanka is the law applicable in England.
There is no main statute law applicable to agency in Sri Lanka. The law of agency is therefore found mainly in common law principles decided by the courts.
Duties of an agent to principal …..
Duties of the principal to agent ……
Agency relationships can be terminated for inefficiency, misappropriation, or inability to fulfill other conditions stipulated in the agency agreement.