BOI showcases Sri Lanka’s investment potential to Chinese firms

BOI Director General Renuka M. Weerakone

– Pic by Upul Abayasekara

• BOI Director General Renuka Weerakone invites Chinese investors to capitalise on Sri Lanka’s growing opportunities at ‘Sri Lanka – China Trade and Investment Forum 2025’ 
• Emphasises 1,200 foreign firms operate under BOI across diverse sectors, incentives and investor-friendly environment, including 100% foreign ownership, profit repatriation, Constitutional investment protection
• Identifies textiles/apparel, pharmaceuticals/medical devices, automotive components/rubber-based products, minerals, tourism, education, ICT, agri/food processing, renewable energy and  infrastructure as priority sectors for investment
• Highlights ready-to-invest projects in sectors such as hospitality, education, logistics, IT, pharmaceuticals and entertainment

By Charumini de Silva

Board of Investment (BOI) Director General Renuka Weerakone made a compelling case to Chinese businesses to capitalise on Sri Lanka’s growing investment and trade opportunities at the recently concluded ‘Sri Lanka – China Trade and Investment Forum 2025.’

The high-profile forum was attended by China’s Commerce Minister Wang Wentao, Chinese Ambassador to Sri Lanka Qi Zhenhong, and 115 delegates representing 77 Chinese companies, underscoring the strategic significance of deepening bilateral economic relations.

Weerakone reaffirmed Sri Lanka’s openness to foreign investment and its readiness to work closely with Chinese businesses across high-impact sectors. 

She assured that the BOI acts as a longstanding partner for foreign investors, offering smooth facilitation throughout the investment process. With over 1,200 foreign companies already operating under the BOI framework across sectors such as manufacturing, apparel, IT, tourism, food processing, logistics, and infrastructure, she said Sri Lanka is well-positioned to welcome new entrants.

“The investment flow to Sri Lanka through Chinese companies so far is about $ 3.5 billion and it has contributed to the creation of around 5,000 job opportunities for local citizens,” she pointed out.

To further attract investment, Weerakone detailed a suite of incentives including a reduced 15% corporate income tax for export services, enhanced capital allowances of 100-200% over extended periods, and duty exemptions on raw materials and project-related imports.

“Companies operating under the Commercial Hub Regulation also benefit from exemptions on Customs duties, VAT, CESS, and excise levies, with a special Green Channel mechanism in place for high-performing, export-oriented firms,” she added.

She also elaborated on entry thresholds for non-BOI companies to qualify for BOI benefits, including provisions for both the transfer of local shareholding to foreign investors and the infusion of additional capital. 

“For example, export-oriented manufacturers must meet a $ 1 million threshold via share transfer or $ 250,000 through new capital infusion, with mixed development projects requiring $ 5 million,” she said.

Underpinning her appeal was a clear articulation of Sri Lanka’s investor-friendly environment; she noted the country allows 100% foreign ownership, full repatriation of profits, and investment protection guaranteed by the Constitution. 

In addition, it was noted that Sri Lanka is a signatory to the World Bank’s Multilateral Investment Guarantee Agency (MIGA), has bilateral investment protection agreements with 26 countries, and offers double taxation relief agreements with 45 others.

The BOI Director General also underscored the island nation’s geographic advantage, skilled workforce, and high quality of life. 

She pointed to preferential market access through the EU Generalised Scheme of Preferences Plus (GSP+) scheme, enabling zero-duty exports of over 6,400 products to 27 EU countries, as well as free trade agreements with India, Pakistan, Singapore, and Thailand, and participation in regional pacts like South Asian Free Trade Agreement (SAFTA) and Asia-Pacific Trade Agreement (APTA).

Weerakone outlined a range of priority sectors the BOI has identified to drive future foreign direct investments (FDIs) in. Textile and apparel topped the list, with targeted areas including sportswear, lingerie, loungewear, workwear, swimwear, children’s wear, wearable tech, knitted garments, fabrics, and accessories. 

Pharmaceutical and medical devices were another key focus area, where the BOI is encouraging investment in vaccines, generics, biosimilars, oncology drugs, and APIs.

She also noted automotive components and rubber-based products as a priority sector, with potential areas including; wiper blades, clutches and parts, gearboxes, suspension and safety systems, lighting and signal equipment, steering wheels, drive axles with differential and aircraft safety nets, gloves, high-tech gloves, solid and pneumatic tyres, moulded rubber products, and foam rubber products. 

Weerakone also asserted the mineral industry as a potential sector, noting that it remains under-explored, offering opportunities for discoveries and developments. Graphite-graphene technology, titanium pigments, graphite and titanium related industries, the automobile industry, and high-tech industries were outlined as potential product areas for investments.

Tourism was another, with targeted areas including wellness and wellbeing tourism, agro-tourism, adventure and eco-tourism, leisure complexes, and Meetings, Incentives, Conferences, and Exhibitions (MICE) tourism. She highlighted Sri Lanka’s untapped potential to evolve as a regional tourism hub, particularly given its scenic landscapes and growing infrastructure.

Education was another key focus, where the BOI encouraged investment in higher education partnerships, online degree programs in collaboration with global institutions, and vocational training centres certified by the National Vocational Qualification (NVQ) framework. She said these centres aim to skill Sri Lanka’s youth for employment in sectors such as hospitality, IT, automotive, and construction.

Weerakone also positioned Sri Lanka as a competitive destination for ICT and IT-enabled services. She highlighted sub-sectors ripe for investment, including legal, financial, and business process outsourcing (BPO), as well as cutting-edge fields like quantum computing, artificial intelligence (AI), software development, cloud services, and cyber security. With a skilled, English-speaking workforce, she argued, Sri Lanka is well-suited to absorb and scale digital innovation.

The agriculture and food processing sector was identified as another high-potential area, with investment opportunities spanning value-added fruits, vegetables, coconut and spice products, dairy, poultry, and fisheries. Renewable energy also featured prominently, with the BOI welcoming proposals in solar, wind, battery storage, pump storage hydropower, and floating solar projects.

Infrastructure development, a longstanding pillar of Sri Lanka’s investment landscape, remains a key priority. Weerakone encouraged Chinese investors to explore projects in residential and commercial real estate, tourism-related construction, industrial zones, healthcare facilities, and utility infrastructure. 

She also pointed to several ready-to-invest projects in sectors such as hospitality, education, logistics, IT, pharmaceuticals, and entertainment, designed for immediate foreign participation.