12th -14th November 2013 C O L O M B O

GUIDE TO INVEST IN SRI LANKA

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The Commonwealth Business Forum (CBF) will take place in Colombo, Sri Lanka between the 12th and 14th November 2013 in conjunction with the Commonwealth Heads of Government Meeting (CHOGM). The Forum is the premier business event in the Commonwealth, bringing together Heads of Government, Ministers, and top business leaders from around the world and will be attended by over a thousand delegates.

The CBF is co-organised by the Commonwealth Business Council (CBC) and the Government of Sri Lanka, and forms a part of the overall CHOGM programme. It will provide a valuable opportunity for high-level dialogue on trade and investment between business and government leaders from the Commonwealth and beyond. The Forum will be opened by the President of Sri Lanka and will be addressed by Commonwealth Heads of Government.

The CBF is a major global business event, coming at a critical time as the developed world continues its efforts to secure recovery from recession, tackle the challenges of maintaining open markets and when emerging markets are enjoying a greater prominence on the world stage than ever before. The Forum will be a key event in developing stronger partnerships between governments and business to ensure that the Commonwealth plays its part in promoting sustainable growth to the benefit of the whole of global society.

12th – 14th November 2013Colombo, Sri Lanka.

Commonwealth Business Forum 2013

SRI LANKA - THE WONDER OF ASIA

On behalf of the Government and the people of Sri Lanka, I extend my warm greetings and best wishes to the Common-wealth Business Forum (CBF). The CBF is an integral part of the Commonwealth Heads of Government Meeting (CHOGM) that is being jointly organized by the Government of Sri Lanka and the Commonwealth Business Council. Sri Lanka, as a founder member of the modern Common-wealth, considers it a great honour to host CHOGM and its parallel events.

The theme of CBF 2013 is “Partnership for Wealth Creation and Social Development: The Commonwealth, Indian Ocean and SAARC”. This theme is indeed timely and relevant to us for several reasons. First, South Asia is home to some of the fastest growing economies in the world today, although equi-table wealth creation is still a challenge for the policy makers. Second, social development, which is fostered by inclusive growth strategies, has been lagging in several countries in the Commonwealth including some in the Indian Ocean regions, and private entrepreneurship, global linkages and

Welcome Message by His Excellency

Mahinda RajapaksaPresident of Sri Lanka

strong institutional support are therefore needed to sustain this growth momentum and make it inclusive.

In that background, the time is now ripe for the Common-wealth, Indian Ocean and SAARC countries to use the opportunities of their long standing relationships as they move into this new era of development.

The Commonwealth has a combination of developed and developing countries with diverse cultures and traditions. This diversity creates a fertile ground for the exchange of technological know-how, skills and investments that would foster sustainable economic partnerships between busi-nesses and Governments in the Commonwealth. While technology and investment are necessary, nations must also develop healthy interactions to build strong institutions that could convert the decisions and agreements reached at these international fora, into realistic practices and processes that would deliver the desired outcomes.

Sri Lanka is delighted to host CBF 2013 as we too have embarked on a journey of rapid and inclusive growth. The country is now well positioned to become an important eco-nomic centre in the region, with the launch of an ambitious five hub strategy for economic development. Under this strategy, aviation, commercial, energy, knowledge and naval hubs will connect South Asia to the rest of the world.

I am confident that the Governments, businesses and all other participants at this forum will benefit by the opportu-nity to network and build lasting relationships. Needless to say, the benefits of partnerships amongst us, can lead to significant growth, improving the prospects of all partici-pants to serve their communities and countries.

Let me therefore, with great pleasure, welcome you to the Commonwealth Business Forum 2013 in Colombo, and wish you success in all your endeavours.

Mahinda RajapaksaPresident of the Democratic Socialist

Republic of Sri Lanka

Ayubowan

Energy Hub

Maritime Hub Commercial Hub

Tourism Hub

Aviation Hub

Knowledge Hub

Population 20.3 Million Labour force 8.5 Million GDP at current Market Price USD 59.4 BillionGDP per capita USD 2,923GDP growth rate 6.4%Inflation rate 7.6%Total exports USD 9,774 MillionTotal imports USD 19,183 MillionFDI USD 1,338 Million

Life expectancy 75.1 years (average) - Male 72.4 years - Female 79.6 yearsLiteracy rate 92.2% (average) - Male 93.5% - Female 91.1%Human Development Index 0.715 (92 out of 186 countries)

Sourc : Central Bank of Sri Lanka, Annual Report 2012

Key Economic & Social Indicators (2012)

Sri Lanka’s Hubs under “Mahinda Chinthana”

SRI LANKAECONOMIC

HUB

Sri Lanka’s Hubs under“Mahinda Chinthana”

Aviation Hub

Second international airport at Mattala Modernisation of the Bandaranaike International Airport (BIA) and building of a second runway at BIADevelopment and upgrading of domestic airportsPosition Colombo as a regional logistics and services hub and as a hub for budget airlines

Maritime Hub

Colombo Port – Container mega-hubHambantota Port – Free Port Service: Industrial and Multi-purposeGalle Port – Cruise Shipping centreTrincomalee Port – Port-related Indus-triesOluvil Port – Commercial and Fisheries PortKankasanthurai and Point Pedro – Regional Ports

Energy Hub

Develop renewable energy sources New oil refinery at Hambantota Oil exploration and production – 3 sea basins (offshore) have been identified: Mannar, Cauvery, Southern WatersDevelop oil trade-related ancillary services including gas

Knowledge Hub

Target IT literacy and internet accessCreation of knowledge-based jobsCommence degree programmes directly targeting foreign studentsAccredited degree-granting universities to set up institutions in Sri Lanka

Commercial Hub

Establish Sri Lanka as the foremost centre in the provision of commercial services including international bank-ing and investmentsWith the growth of ports and tourism, Sri Lanka’s commercial sector will develop naturally

Tourism Hub

Sri Lanka has targeted over 2.5 million tourist arrivals by 2016.Targeted additional room capacity of 36,000 by 2016.

CBF at CHOGM

The Hon. Julia Gillard MPPrime Minister, Australia & Chair in Office of the Commonwealth“The nations and peoples of the Commonwealth are enormously diverse, yet these values we share, our distinctive way of doing things and our distinctive set of concerns for the world’s people, unite us in a way that is truly wonderful. Our friends in the Business Council call it the “Commonwealth factor”, the web of connections, friendships and values that drive opportunity among the 54 nations of our fellowship.”

The Right Hon. Dato’ Seri Najib Tun RazakPrime Minister, Malaysia““I am of the view that the Commonwealth Business Forum is an ideal platform for the business community to network, exchange valuable experience and knowledge, as well as explore business opportunities and collaboration in areas of interest.”

Hon. Dr. Lawrence GonziPrime Minister, Malta“In the short time since its inception in 1997, the Commonwealth Business Forum has successfully demonstrated the Commonwealth’s continuing capacity to meet the changing needs of its members - small and large economies alike - by developing practical ways of facilitating trade and investment.”

HE Paul KagamePresident, Rwanda“I appreciate the unwavering support received from CBC during Rwanda's application to join the Commonwealth.Now that Rwanda is a formal member, we look forward to an even stronger partnership to promote business and investment not only in our country, but in Africa as a whole.”

HE Goodluck JonathanPresident, Nigeria“I thank the CBC for creating this environment, providing this platform and for supporting Africa’s development by organizing this dialogue. This collaboration must be the beginning of a structured and mutually beneficial engagement between the Commonwealth business community and Africa.”

Hon. Kamla Persad BissessarPrime Minister, Trinidad And Tobago“I extend the warmest congratulations to the Commonwealth Business Council for its foresight in bringing together such a distinguished group of businessmen, entrepreneurs, investors and financiers for the purpose of fostering economic partnerships for the benefit of the family of Commonwealth nations.”

HE Yoweri MuseveniPresident, Uganda“Amongst the Commonwealth countries, there is significant untapped potential. With the active involvement of the private sector in partnership with governments, this potential can be harnessed in a wide range of sectors. The CBF provides an ideal platform to help achieve these goals in order to promote economic growth and sustainable development.”

The Commonwealth Business Forum 2013 will be held in Colombo, Sri Lanka on the 12 -14 November on the eve of, and in conjunction with, the Commonwealth Heads of Government Meeting. The Forum will focus on the theme “Partnering for Wealth Creation and Social Development: The Commonwealth, Indian Ocean, Pacific and SAARC”.

The Forum will highlight new global economic partnerships for trade and investment in key sectors across the Commonwealth and beyond. The Commonwealth Business Forum as a unique gathering of business leaders from developed and emerging markets will focus on building the new economic and financial architecture in the global economy and ensure that it is inclusive and beneficial to all. This year’s Forum will focus on the potential for partnership centred around one of the fastest growing regions of the world; the Indian Ocean Rim.

The Commonwealth Business Forum is a must attended event for businesses looking to access the enormous potential of the Emerging Markets and or to expand their operations there. The Forum will be attended by government and business from across, Asia, Africa, Europe and further afield and is invaluable for discovering new potential partners or opportunities for investment or business.

The Commonwealth Business Forum provides a unique opportunity for business and government to:• Learn from more than 100 speakers and panellists including Heads of Government, Ministers of Finance, Trade and Develop-ment, Chairmen and Chief Executives of business and other industry Leaders• Meet and discuss trade, investment and partnership opportunities• Learn about new business and investment prospects• Develop new business leads and identify new trade and investment partners• Conduct and conclude business in one to one meetings with other international partners• Network with policy makers, key government officials and business leaders• Influence the global debate on important trade and investment issues• Contribute to key policy recommendations to Commonwealth Heads of Government

We look forward to welcoming you at the Forum in Colombo, Sri Lanka in November.

Peter Callaghan

Forum OverviewPeter Callaghan, Director General Commonwealth Business Council

Heads ofGovernment

InternationalBusinessLeaders

andConfirmedSpeakers

HE Armando Guebuza President Mozambique

Hon Dr Denzil L. Douglas Prime MinisterSt. Kitts and Nevis

Hon Kamla Persad-Bissessar Prime Minister Trinidad and Tobago

HE Yoweri Museveni President Uganda

HE Pierre Nkurunziza President Burundi

Aigboje Aig-Imoukhuede, CEO,Access Bank, Nigeria

James Packer,Chairman,Crown Limited

Dr. Lakshman Jayaweera,Chairman,Board of Investmentof Sri Lanka

Louis Farrugia,Chairman, Simonds Farsons Cisk, Malta

Dr Chris Nonis,Chairman, Mackwoods, Sri Lanka

A. K. M. Salim Osman, Managing Director, Wisdom Attires,Bangladesh

Chris Parsons,Chairman, India practice, Herbert Smith Freehills, United Kingdom

Dr. Turki Al Rasheed, Chairman,Golden Grass, Saudi Arabia

Susantha Ratnayake, Chairman & CEO, John Keells Holdings, Sri Lanka

James Gatera, Managing Director, Bank of Kigali,Rwanda

Penny Low,President & Founder,Social Innovation Park Ltd,Singapore

Mian Mohammad Mansha, Chairman,Nishat Group, Pakistan

Hugh Morgan, CEO,First Charnock, Australia

Rahul Bajaj,Chairman,Bajaj Auto,India

C.K. Birla,Chairman,CK Birla Group,India

Patrick Bitature,Chairman,SimbaTel, Uganda

Sonjoy Chatterjee,Chairman, Goldman Sachs,India

HE Hifikepunye Pohamba President Namibia

Registration Day: Monday, 11 November12.00-19.00 Registration

17.00-18.00 Speaker Reception and Forum Briefing (By invitation only)

Day One: Tuesday, 12th November 201309.00-10.30 Opening Ceremony Partnering for Wealth Creation and Social Development The Commonwealth brings together some to the world’s wealthiest and poorest countries, this session will focus on form ing partnerships to ensure that the benefits of growth reach all societies and guarantee widespread social development. Keynote Address: HE Mr. Mahinda Rajapaksa, President, Sri Lanka

10.30-11.00 Refreshments and Networking Break

11.00-12.30 The Commonwealth, Indian Ocean, Pacific and SAARC: Building New Partnerships With a significant population base, skills and natural resources, these regions draw together some of the world’s fast- growing and most dynamic countries. This session will help set the agenda for the Forum and focus on building new partnerships for business and governments.

12.30-13.55 Hosted Networking Lunches 1) Hosted Lunch 2) Hosted Lunch 3) Hosted Lunch 4) Hosted Lunch

14.00-15.30 Developing the Rural Economy for Sustainable Shared Growth Developing the rural economy is a key aim for many Commonwealth countries’ development agendas. This session will examine the challenges and opportunities for partnerships to ensure sustained growth in rural areas including in the Agriculture, Infrastructure and Education sectors.

14.00-15.30 Partnership Roundtables 1) Infrastructure Development

2) BPO & Business Outsourcing

15.30-16.00 Refreshments and Networking Break

16.00-17.25 Developing Small & Medium Business for Greater Wealth Creation SMEs are the life-blood of all economies, be they large or small, developed or emerging, they are the largest employers and the most entrepreneurial of sectors. This session will look at ways to ensure sustained growth, access to finance and methods of internationalisation.

16.00-17.25 Partnership Roundtables 1) Green Growth & Climate Change 2) Energy Infrastructure

17.30-18.55 Sri Lanka: Trading Hub for the Indian Ocean and SAARC Sri Lanka’s geographic position puts it at the heart of one of the global economy’s fastest growing and high volume regions. This session will look at the opportunities for Sri Lanka to further develop its regional presence as a trading and business hub.

17.30-18.55 Partnership Roundtables 1) Business and Society 2) Strengthening the SME Sector

19.00 Reception and Gala Dinner: Celebrating Sri Lanka and the Commonwealth Address: HE Kamalesh Sharma, Commonwealth Secretary General Keynote Address: HE Mr. Mahinda Rajapaksa, President, Sri Lanka

Programme

Day Two: Wednesday, 13th November 201307.30- 08.45 Hosted Breakfast Sessions 1) Hosted Breakfast 2) Hosted Breakfast 3) Hosted Breakfast 4) Hosted Breakfast

09.00- 10.30 Sri Lanka: 21st Century Business Destination For the last 5 years, Sri Lanka has averaged 7% growth and is expected to continue to grow even faster over the next decade. This session will examine the opportunities in Sri Lanka and provide business views on how to supercharge the country’s development.

09.00- 10.30 Partnership Roundtables 1) Urban Development & Cities of the Future 2) Engaging Communities though Education

10.30- 11.00 Refreshments and Networking Break

11.00- 12.30 Infrastructure Challenges: New Global Partnerships Infrastructure deficits are the most common impediment to growth across the Commonwealth. This session will look at ways of tackling this challenge by examining the potential for partnerships between governments and businesses, development banks and donor organisations.

11.00- 12.30 Partnership Roundtables 1) Innovation & Financial Services 2) Agriculture & Agri-businesses

12.30-14.00 Hosted Networking Lunches 1) Hosted Lunch 2) Hosted Lunch 3) Hosted Lunch 4) Hosted Lunch

14.00- 15.30 Banking and Financial Services: Enhancing Access and Economic Resilience Credible, reliable and trustworthy banking and financial services provide the engine for growth in all sectors of the economy. This session will examine ways of strengthening this critical sector and ensuring that it is accessible to all sectors of society.

14.00- 15.30 Partnership Roundtables 1) Textiles & Apparel

2) Ensuring Regional Skill Requirements are met through Education

15.30- 16.00 Refreshments and Networking Break

16.00- 17.25 Tourism: A Critical Driver of Growth Tourism is a mainstay of many of the Commonwealth countries’ economies. Increasing the number of visitors and increasing employment brings much need foreign currency. This session will examine ways of increasing tourism without threatening the local economy or ecosystem.

16.00- 17.25 Partnership Roundtables 1) Digital Growth & ICT

2) Innovation and Young Entrepreneurs

17.30- 18.55 Strategic Partnerships for Manufacturing, Design and Value Addition The manufacturing sector is one of the biggest employers in the Commonwealth and responsible for a large share of many countries’ export earnings. This session will examine ways of expanding this sector and ensuring the highest possible value is extracted from exported goods.

17.30- 18.55 Partnership Roundtables 1) Sport for Development & Growth

2) Commonwealth Businesswomen's Network

19.00 Reception and Gala Dinner Keynote Address: Visiting Head of Government Guests of Honour: Commonwealth Foreign Ministers

Day Three: Thursday, 14th November 201307.30- 08.45 Hosted Breakfast Sessions 1) Hosted Breakfast 2) Hosted Breakfast 3) Hosted Breakfast 4) Hosted Breakfast

09.00- 09.55 Energy and Natural Resource Development: Commonwealth Partnerships Many Commonwealth countries are richly endowed with Energy and Mineral resources and are in a position to feed the ever-growing global demand for natural resources. This session will examine ways and share experiences of successful resource development

09.00- 09.55 Invest In: Country Roundtable Chair: Visiting Head of Government

10.00- 10.55 Africa & Asia: Re-shaping Partnerships for Sustainable Growth Africa and Asia will be the drivers of global growth for the 21st Century; this session will focus on ways of ensuring that growth is sustained and to the benefit of all.

10.00- 10.55 Invest In: Country Roundtable Chair: Visiting Head of Government

11.00- 11.30 Refreshments and Networking Break

11.30- 12.25 Tackling Unemployment: Education, Knowledge and Skills Unemployment is a challenge for all countries and an educated and highly skilled workforce is key to ensuring that growth and development don't stall in the mid to long term. This session will examine the potential for partnerships across the Commonwealth and share the best practices and experiences on tackling unemployment.

11.30- 12.25 Invest In: Country Roundtable Chair: Visiting Head of Government

12.30- 13.25 Strengthening National Economies through Global Business and Trade Global business provides employment and gives consumers increased choices at lower prices. This session will examine how economic growth can be enhanced though further linkages between large and small business and partnerships between governments and businesses.

12.30- 13.25 Invest In: Country Roundtable Chair: Visiting Head of Government

13.30- 15.00 Concluding Session & Official Lunch: Building new Partnerships: The Way Forward Keynote Address: Visiting head of Government

15.00- 16.30 Sri Lankan President’s Roundtable with Heads of Government and Business Leaders Chair: HE Mr. Mahinda Rajapaksa, President, Sri Lanka (By Invitation Only)

The Forum will feature a project portfolio of investment proposals that are looking for funding, equity or business partners. The Business Matching Centre will enable participants to meet with potential investors, investment bankers, and potential knowledge partners to present their projects.

Project summaries will be available in advance. Interested investors, partners and project holders will be available for one-to-one meetings.

Projects will be organised by country and sector and include business plans with identified requirements in terms of investment required, technical and knowledge-based requirements. For potential investors, this is an opportunity to establish strong partnerships and explore investment opportunities in key sectors such as ICT, financial services, tourism, infrastructure, agriculture, manufacturing and the environment.

The Centre will bring together entrepreneurs looking to access finance and new markets, investors and companies looking for new markets or projects, and companies looking for external markets and knowledge partnerships to improve their competitiveness.

Doing Business at CBF 2013

Project Portfolio of Investment Proposals• National and International call for Projects• Focused Sessions on Sectors andSpecial Projects• Portfolio broken down by Country, Sectorand Project Size• Project Lounge for Presentations andone-to-one meetings

B2B Forum activities will include: A Business Management Lounge for meetings between project holders and potential investors/partners, manned by staff of the Board of Investment of Sri Lanka (BOI) A project book and digital version with summaries of projects and short profiles of potential partners/investors An Exhibition Centre to enable companies/countries to showcase products and services The opportunity to present country or sector strategies in breakout sessions of the forum Site visits to key projects

The Centre will bring together businesses and a wide range of potential investors, government bodies and global technology and knowledge-based industries.

Access Opportunities in Sri Lanka• Learn about potential projects in one of the fastest Growing Markets in World• Access Opportunites in Key Sectors: Agriculture, Manufacturing, Tourism, Education, IT/BPO, Renewable Energy and Infrastructure

Biggest Business Event Ever held in Sri Lanka• Opened by the HE the President of Sri Lanka• Addressed by 10-20 Heads Of GovernmentHE Dr Chris Nonis, Sri Lankan High Commissioner to the UK & Dr Mohan Kaul, Chairman, CBC Launching the Sri Lanka Investment Guide 2012• Both Commonwealth and Non-Commonwealth • 1,000 Delegates and 100 InternationalBusiness Speakers

Most Diverse Business Networking Opportunity• 1,000 Delegates• From 60 Countries representing 6 Continents• Pre-arranged one-to-one business meetings• Project Portfolio of investment proposals

The Board of Investment of Sri Lanka

The Board of Investment (BOI) has its origins in the Greater Colombo Economic Commission,which was established in 1978. Fourteen years later, in 1992, the Commission was reconstituted as the Board of Investment of Sri Lanka.

The BOI is structured to function as a central facilitation point for investors. It operates as an autonomous statutory body. It has a Board of Directors drawn from the private and public sectors and several departments that are geared to facilitating the investment process.

Significantly, when you sign an agreement with the BOI, there are specific incentives granted to an eligible company – which may include tax holidays or preferential tax rates, exemption from customs duty and foreign exchange controls.

The provisions and the spirit of the Agreement cannot be changed by successive governments. This is the fundamental strength of a BOI agreement which only a few other countries can offer or match.

To date, over 1600 companies which have signed agreements with the BOI are in commercial operation.

Steps have been taken recently to further revitalise the BOI to make it a dynamic investor promotion centre in the country.

I n t r o d u c t i o n

The BOI provides advice and assistance at each stage of the investment process. We can help you in the following ways:

• Providing information and guidance before submission of your project application and co-ordinating approvals from other agencies, if required.

• Evaluating applications and providing concessions, where applicable, to your project.

• Providing assistance during the start-up of your project: site selection and clearance, advice on factory buildings and other technical matters, arranging support services such as water, power, waste treatment and telecommunications.

• Advising and guiding you on environmental norms and facilitating and attending to environmental approvals.

• Making recommendations to Immigration Authorities for issuing resident visas.

• Facilitating and attending to import/export clearance, customs clearance, permit charges for the import of capital goods and raw materials as well as the export of the final products.

• Assistance and facilitation when necessary in the maintenance of good industrial relations and in the formation and operation of Employee Councils.

BOI FacilitationThe Commonwealth Business Forum will be Sri Lanka's most significant business event in recent years and will be a unique opportunity to publicise the many advantages Sri Lanka offers to international investors.

Delegates and visitors to the Commonwealth Business Forum (CBF) will appreciate that Sri Lanka does offer considerable investment opportunities in a wide range of targeted sectors.

Some of these investment opportunities are linked to the objectives identified by the Government to transform Sri Lanka into a strategic hub in the region. Sri Lanka enjoys a geographic position which favours her development into a maritime, aviation, energy, commercial and knowledge hub.

In addition, our distinguished visitors attending the CBF will also appreciate that Sri Lanka has a highly liberalised economy dating back to 1977, which followed a business-friendly policy environment that favouring investment and economic growth.

Why Choose Sri Lanka?

Sri Lanka is a beautiful island located in the southern tip of India subconti-

nent. It has an area of 65,610 km2, including 2,905 km2 of inland waters.

The country has divided its territory into 9 provinces and 25 administrative districts. The administrative capital of

Sri Lanka is Sri Jayawardanepura-Kotte whereas the commercial capital

is Colombo. Sri Lanka’s official languages are Sinhala and Tamil;

nevertheless English is the business language and commonly used in the Government and private institutions.

Major exports of Sri Lanka are apparel, tea, spices, rubber products,

gems, jewellery and food and bever-ages. Imports comprise of mainly

intermediate goods such as petro-leum, textiles, chemicals, paper and

paper products, diamonds, wheat and meslin, plastics and fertiliser.

In 2012, Sri Lanka achieved FDI inflows of US$ 1.33 Billion.

As a potential investor, you will undoubtedly have many questions about the business and regulatory environment and the many advantages Sri Lanka has to offer.

Investment opportunities exist in many areas, particularly in those which are linked with the objectives identified by the government to transform Sri Lanka into a strategic hub in the region. The geographic position of the island between the East and West, favours its development into a maritime, aviation, commercial, energy and knowledge hub.

Pioneering South Asia’s economic liberalisation, Sri Lanka since 1977 has followed free-market policies and has evolved a business-friendly policy environment favourable to investment and economic growth. Over the years, successive governments of this country have continued to liberalise many areas of the economy to pave the way for international investment. As a result, Sri Lanka remains one of the most attractive investment destinations in the Asia-Pacific region.

Sri Lanka's policy environment is business-friendly and compellingDelegates and participants who will be attending the Commonwealth Business Forum will appreciate the following:

• Total foreign ownership is permitted across virtually all areas of the economy.• There are no restrictions on repatriation of earnings, fees and capital, and on foreign exchange transactions relating to current account payments.• The safety of foreign investment is guaranteed by the Constitution• A sophisticated legal and regulatory framework exists, covering, for example, intellectual property, settlement of disputes through arbitration, company laws etc.• Bilateral investment protection agreements with 27 countries and double tax relief agreements with 38 countries.• Sri Lanka also has much to offer because of its many natural attributes and competitive advantages.

Overview

One of the reasons why Sri Lanka is an excellent destination for investment can be attributed to the unique location of Colombo which is situated at the crossroads of most of the major shipping routes to South Asia and the Far East. Sri Lanka is also comparatively close, in geographical terms to Africa, the Middle East and Australia.

In recent years, Colombo Port has become a major trans-shipment hub. Sri Lanka hopes to leverage on its geographical advantage by implementing a policy framework to position the country as a services hub to the subcontinent.

Based on this concept, Sri Lanka is now poised to exploit its location as

• A regional hub for communications – We are connected by the SEA-ME-WEfibre-optic communication system and 11 Communication satellites are over the Indian Ocean just south of Sri Lanka.

• A regional hub for cargo – For centuries, Sri Lanka has been on the Maritime Silk Road. The Port of Colombo is already South Asia’s premier trans-shipment port but we are continuing to develop our ports in Colombo, Galle, Trincomalee and Hambantota to face the challenges of the 21st Century.

• A regional hub for services – logistics, financial and IT.

Moreover, Sri Lanka is the logical location for manufacturing and service organisations that wish to establish a presence in a growing economy in the region. The island is ideally-located as the gateway to the vast Indian subcontinent – home to a quarter of the world’s population.

In addition, trade barriers are falling throughout the region. The eight countries which comprise the South Asian Association for Regional Cooperation (SAARC) have resolved to progress towards a South-Asia Free Trade Agreement (SAFTA) over the next 5 years. Sri Lanka already has Free Trade Agreements with both India and Pakistan. Cordial diplomatic and economic ties are maintained with all countries in the region.

Sri Lanka enjoys a unique and central Location A skilled workforce

makes investments in Sri Lanka highly profitableA factor that potential investors who will be attending the CBF need to consider is that Sri Lanka's most valuable resource are her people.

Sri Lankan labour is reputed for its precision, quality and productivity. We have an educated and energetic workforce, whose trainability is among the best in comparable investment locations. Skilled and semi-skilled workers are available at highly competitive wage rates. English is both widely understood and spoken.

Emphasis is placed on developing Sri Lankan human resources. According to data published by the World Bank, Sri Lanka has the highest life expectancy (75 years), highest literacy rate (92 per cent) and lowest infant and child mortality rates among developing nations. We also have the lowest urbanisation rate within this group. This situation is the result of extensive investment in public education and welfare by successive post-independence governments where education is free from kindergarten to university. Health facilities are also free. Universities and technical colleges are geared towards the needs of industry.

Today, investors will find an intelligent, educated and energetic workforce that is comfortable with modern production techniques and has a level of trainability that is among the best in the region.

Our proposed sectors for future investment based on our strength:

Tourism High-tech Manufacturing for Export

Infrastructure/Telecom/Primary and Alternative

Energy Sectors

Agriculture and Agro-basedIndustries for value addition

International universities,Training Centers and

Research Establishments tocater to overseas markets

IT/BPOs Pharmaceutical Industries

A supportive business environment

According to the World Bank, Sri Lanka’s indicators for quality of

life in terms of gross domestic product (GDP) per capita,

adjusted to reflect purchasing power parity, is over US$ 6,040

(The Economist 2012 estimate) per year and therefore, relatively high.

The figure is higher than the Philippines and more than the

double that of India.

The country’s scenic beauty and bio-diversity are ranked among the

best in the world. Sri Lanka also has eight world heritage sites as

classified by UNESCO – an indication of the country’s rich

cultural heritage.

The quality of life is the highest in the South Asian region.

A cosmopolitan living environment, abundant recreational facilities, a

culture dating back 5000 years, unparalleled natural beauty and an

equable climate throughout the year make Sri Lanka a pleasant

place to live in.

Sri Lankaoffers

investorsunequalled

quality of lifeVisiting delegates attending the CBF will appreciate that Sri Lanka has one of the most liberal business environments in Asia and was in fact, the first South Asian nation to adopt a free market economic policy.Sri Lanka will offer any new investors the ideal environment to start a business and the chance of return on investment.To begin with, Sri Lanka enjoys political stability and has a government which is responsive to the needs of investors. Successive Sri Lankan Governments have strengthened the investment environment by adopting liberal policies on investment. Sri Lanka offers investors attractive facts and other incentives including a liberal exchange control regime and protection for intellectual property.

Rapidly developing infrastructureSri Lanka has concentrated on developing her infrastructure and these make the island nation ideally-suited for investors.

Delegates attending the CBC will be able to travel easily throughout the country by road, rail and even air.

The road network is good and considerable efforts are being made to develop expressways. The Southern Expressway connects the business capital, Colombo to the city of Galle in south. This expressway will be extended further south to Matara and Hambantota.

The major seaport is Colombo, which is a deep water harbour. In addition, Sri Lanka is also expanding the harbour at Hambantota and developing Trincomalee, one of the world's largest natural harbours. Other ports in the Island which are earmarked for development are Galle, Oluvil and Kankasanthurai.

The major international airports are in Katunayake, near the capital of Colombo, welcoming 1 million arrivals every year and the new state-of-the-art airport at Mattala, near the rapidly growing southern city of Hambantota.

Transparent Investment LawsThe country’s investment laws are transparent and automatic across a wide range of sectors. Under the terms of the Board of Investment Law, the BOI has a wide ranging authority to grant exemptions from various laws including Customs and Exchange Control.

It is significant that when a qualifying investment project enters into an agreement with the BOI, the incentives granted to the project company are valid for the life of the enterprise. The applicable incentives enshrined in the agreement cannot be changed by successive governments. This is the fundamental strength of a BOI Agreement, which only a few other countries can offer or match.

Generous Tax Incentives and BOI FacilitationCertain projects which the Government of Sri Lanka encourages, qualify for incentives. The rationale for granting these incentives stem from the need:

• To promote the diversification of Sri Lanka’s industry and services, focusing on advanced technology, and value addition.• To promote investments in large-scale projects with special emphasis on infrastructure.• To exploit regional opportunities and Sri Lanka’s comparative advantages.• To promote the development of Strategic Development Projects

Telecommunications are also modern and Sri Lanka is well-connected to the rest of the world.

Investors can also set up enterprises if they wish to use the island's well-developed 12 Export Processing Zones. More EPZs are earmarked for development, particularly at Sooriyawewa and Mirijjawila near Hambantota.

Thrust Sectors for InvestmentIn line with the Government's policy, efforts will be intensified to target and attract investments to thrust sectors in which Sri Lanka has a strong foundation for growth areas as well as areas where it is nationally important to develop.

Priority Sectors identified to fast-track implementation of private investments include:

• Manufacturing/production of non-traditional goods for export, including deemed exports: a) Apparel, textile, handlooms and local gift industries b) Cosmetic industry based on local herbs and medicinal plants• Export-oriented services• Export of knowledge-based services• Tourism and integrated leisure activities• Infrastructure projects: bonded warehouses, cold and dry storage and other logistics-based investments• Creative work including artwork• Fitness Centres or providing facilities for sports• Urban infrastructure and commercial housing• Higher Education/Skills Development• IT and IT-enabled services• Value-added strategic projects• Agriculture/Agro Processing /Dairy Development /Fish-Based Industries• Establishment of Industrial Estates, Special Economic Zones and Knowledge Cities

Telecommunications are also modern and Sri Lanka is well connected to the rest of the world.Investors can also set up enterprises if they wish to use the Island's well developed Processing Zones throughout the Island's well developed 12 Export processing Zones. More EPZs are earmarked for devel-opment, particularly at Sooriyawewa and Mirijawila near Hambantota.

Category Qualifying Criteria (Minimum Inv estment in fixed assets)

US$ Mn .

Tax Holiday

(Years)

Small Scale

- Agriculture

- Services (only for selected sectors)

0.25 4

Medium Scale

- Manufacturing

- Agriculture

- Services (only for selected sectors)

0.50 and <1.0

1.0 and < 2.0

2.0

4

5

6

Large Scale

- Manufacturing

- Agriculture

- Services

>3.0 and = 5.0

> 5.0 and = 7.0

> 7.0 and = 10.0

> 10.0 and = 15.0

> 15.0 and = 25.0

> 25.0

6

7

8

9

10

12

Strategic Import Replacement Enterprises

- Fabric

- Pharmaceutical

- Milk P owder

- Cement

5.0

10.0

30.0

50.0

5 years tax holiday

follow ed by a

concessionary tax rate

of 12%

Incentives for Investments

• Exemption on Value Added Tax (VAT), Customs Duty, Port & Airport Levy (PAL) and Cess on Imports of all capital goods and project-related items during the project implementation period

• Exemption from Exchange Control: - For companies that export goods (Minimum 90% of total output) - For companies that receive earnings in Foreign Currency for export services (Minimum 70%)

• No Withholding Tax on repatriation of dividends during Tax Holiday Periods.

• Tax Holidays of up to 25 years and waivers from other local taxes and levies for Mega Projects

For more information or to register, please contact:

Programme EnquiriesE: sean.leno@cbcglobal.orgT: +44 (0) 20 7024 8209

Delegate EnquiriesE: michael.anderson@cbcglobal.orgT: +44 (0) 20 7024 8211

Sponsorship EnquiriesE: kiran.luchmun@cbcglobal.orgT: +44 (0) 20 7024 8271

Media EnquiriesE: sean.leno@cbcglobal.orgT: +44 (0) 20 7024 8209

Commonwealth Business Council18 Pall Mall, London, SW1Y 5LU, United Kingdom

THE BOARD OF INVESTMENT OF SRI LANKA

www.investsrilanka.com

For General Information:Mr. Mahendra AmarasuriyaCo-Chairman, Sub-CommitteeCommonwealth Business Forum (CBF)Block 04, BMICH, Bauddhaloka Mawatha, Colombo 07E: cbf2013@mea.gov.lkT: +94 11 2680905, 5757200

For further enquiries to invest in Sri Lanka, please contact:

Dr Lakshman Jayaweera Chairman The Board of Investment of Sri Lanka26th Floor, World Trade Center, West Tower,Echelon Square, Colombo 01, Sri Lanka.

E: chairman.projects@boi.lk info.projects@boi.lkT: +94 11 2427001, 2434403-5, 2435027F: +94 11 244 7995, 232 9795

Hon. Neomal Perera Deputy Minister of External Affairs of the Democratic Socialist Republic of Sri Lanka Chairman of the Subcommittee on the Commonwealth Business Forum Ministry of External Affairs 1, Republic Building Colombo 1 Sri Lanka

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