Sri Lanka, situated at the southern tip of India, is a multi-ethnic, multi-religious country with a diverse, rich culture and a recorded history of over 2,000 years. Sri Lanka offers the most friendly and advantageous business climate in South Asia to the international investor for a variety of reasons.

A Democratic Socialist Republic, Sri Lanka has one of the highest literacy rates in South Asia (92%). The use of English in day-to-day life is widespread, and also the language of the commercial sector. A strategic location at the crossroads of both the eastern and western sea routes ensures that Sri Lanka serves as the point of entry to all of South Asia. This strategic location in the Indian Ocean, on the major air & sea routes between Europe & the Far East, gives Sri Lanka an advantage as a global logistics hub

Having adopted a liberalized open economic system as far back as 1977, Sri Lanka is today ranked among the most liberalized economies in South Asia. Investors can enjoy preferential tax rates, constitutional guarantees on investment agreements, exemptions from exchange control and 100% repatriation of profits.

Sri Lanka has an enviable record of political credibility in the international arena. All major political parties are committed to free enterprise and individual freedom. The government has never defaulted nor requested rescheduling of any of its international obligations. Significantly, this protection extends to foreign investors as well. Bilateral investment agreements, supported by constitutional guarantees, provide strong protection for foreign investment for Sri Lanka. In 2004, US imports from Sri Lanka totalled $1.9 Billion, an increase of 8.2% over 2003, while American exports to Sri Lanka were valued at $163.9 Million, an increase of 6% from the previous year. Sri Lanka’s total GDP is valued at $80 Billion and the GDP per capita is approximately $4,000.

The Indo-Lanka Free Trade Agreement clearly demonstrates the political goodwill and commitment between India and Sri Lanka. The agreement creates multiple investment opportunities for local and multinational firms based in Sri Lanka seeking to enter the Indian market. The underlying premise of the agreement is to create a free trade area through the complete or phased elimination of tariffs, which will occur over defined phases. Due to the success of the FTA with India, the Governments of Sri Lanka and Pakistan also have signed an FTA agreement resulting in the opening up of new markets and opportunities.

Entry/exit requirements for US Citizens are simple and straightforward. A passport and onward/return ticket and proof of sufficient funds are all that is required. A no-cost visitor visa, valid for 30 days, will be granted to tourists at the time of entry into Sri Lanka although business travelers are required to have a visa prior to arrival. Sri Lanka is serviced by a world-class international airport in Katunayake, 20 miles north of the capital, Colombo