Structural and political issues have held back foreign investment in Sri Lanka in the past, but with new free trade agreements in the pipeline, and a government committed to attracting global investors to drive economic growth, the outlook is improving.
This chapter examines Sri Lanka’s legal framework, focusing on reforms in several areas, changes in capital gains tax and employment law, updated legislation on zoning and land use issues and other key areas. It also features a viewpoint from John Wilson, Managing Proprietor, John Wilson Partners.…
Interview:John Wilson How has rule of law evolved in Sri Lanka? JOHN WILSON: I think it is fair to say that we in Sri Lanka, for all our laws, regulations and our constitution, have seen a serious decline of the rule of law. Successive governments have not understood that a country with strong institutions and a strong judiciary is an attractive investment destination. No serious and reputable…
Immigration-related challenges often create a deterring effect for foreign investors and for the activities of foreign-owned businesses in Sri Lanka, which certainly are necessary to integrating the country into global value chains. Obtaining a visa in Sri Lanka is a difficult process involving administrative procedures that vary depending on the sector. Foreign individuals are prohibited by law from…
Since 1994 Sri Lanka has allowed non-resident investment in most sectors of the economy, and its foreign direct investment (FDI) regime was seen for many years as one of the most open in Asia. In the recent past, however, the government has consistently not met its FDI targets, and 2015 saw a marked downturn. The reasons for this declining trend are debatable, but many consider that several important…
While the presidential and parliamentary elections in 2015 instigated a wait-and-see approach within Sri Lanka’s private sector, the outcome is expected to be positive in the longer term, bringing improved stability and a more encouraging environment for foreign investment. Under what has been described as a more liberal, open and business-oriented government, Sri Lanka is entering a period in w
This chapter explores the legal framework of Sri Lanka and features topics including foreign ownership rules, efforts to improve investor confidence, and employee rights and protections. It also contains an interview with John Wilson, Managing Proprietor, John Wilson Partners.…
