Investment sectors in Sri Lanka

5 min read
Foreign and local investment sectors in Sri Lanka

Foreign and local investment sectors in Sri Lanka

Thinking of investing your money in South Asia? Look to no other destination that Sri Lanka. Indeed, this tiny island nation off the coast of India is a great investment haven. After the end of its long and protracted civil war around a decade ago, the nation has become a vibrant destination for anyone looking to invest his money and accrue maximum profits.

Our goal in these discussions shall be to examine these opportunities. We are going to focus on both the foreign and local investment sectors in Sri Lanka. We are going to look into how to enter the market, the kinds of opportunities you should anticipate and the benefits of investing your money in the nation.


Foreign Investments: Being endowed with numerous resources, Sri Lanka is great for any foreign investor. The nation indeed has a large coastline, green vegetation, receives abundant rainfall, does not confront adverse variations in weather patterns, and has fertile soils.

Moreover, the government of the nation also provides plenty of support to the would-be investor. These come in the forms of tax holidays for certain sectors of the economy, assistance in starting the business venture, relaxed profit repatriation laws, and unconstrained business registration procedures, among others.

To enter the Sri Lankan market, all that one needs to do is to approach the Ministry of Industry and Commerce. This approach need not necessarily be direct and physical. It could merely take the form of a visit to the ministry’s website. All the forms, as well as the procedures to be followed to enter the specific niche, are contained there.

Foreign Direct Investments:

Below are some of the potentials that the nation has to offer to any foreign investor:

  • Tea industry
  • Apparel and textile industry
  • Rubber Industry
  • Coconut industry
  • Tobacco industry
  • Banking
  • Shipping industry
  • Telecommunication industry
  • Tourism

Local investments

The local investment sector is also not left out either. It is equally as vibrant and promising as the foreign sector. With a vibrant population of 22 million strong, the nation has a ready market and large labor force compared to its size. This confers endless opportunities to anyone willing to invest his money locally.

Entering the local market is even easier. One only has to be a bona fide Sri Lankan resident. He also has to have the necessary startup capital, the actual amount of which varies from sector to sector and location to location. He then has to obtain the business permit from the location municipality or jurisdictions where he intends to set up the base. This should take no more than one week.

The following are some of the local investments opportunities in Sri Lanka:

  • Photography
  • Eatery
  • Stationery shop
  • Clothes dealership
  • Translation services
  • Social media services
  • Party planning
  • Car wash


Regardless of your precise investments preferences, you will find Sri Lanka great and unique for the following reasons:

Low Wage Nation:

Sri Lanka is a low-wage country. Its per capita income is a paltry $12,400. This means that workers generally earn less than their counterparts in the developed world. Moreover, the Sri Lankan workforce is not entitled to the huge incentives that their counterparts receive in the west. These include paid maternal leave, mandatory health insurance, and paid vacation, among others. It, therefore, follows that by choosing Sri Lanka as the preferred investment destination, you get to save a great deal of your money on labor.

Large Labor Force:

As stated, Sri Lanka has a population of around 22 million people. When compared to its size, this is way too large. This large population further drives down the cost of labor. The logic behind this is simple. As many people scramble for the few job opportunities available, they are willing to take up less pay for the same job. The large labor force is also great for those labor-intensive tasks such as textiles and mass production assembly lines. It is for this reason that investing in these businesses in Sri Lanka makes sense.

Ready Market:

Its proximity to both India and China makes it great also due to easy access to the ready market. China and India jointly host one-third of the population of humanity. This benefit mainly stems from the fact that your by-products will not have to travel too far and too long before reaching the targeted customers. You will, therefore, save a great deal of your money by cutting down on transportation and distribution costs. The Sri Lankans themselves also provide some ready market for your commodity. This is due to their rising purchasing power and preference for locally manufactured goods.

Relaxed Investments Restrictions:

Unlike most investments destinations in South Asia and around the world, Sri Lanka has relaxed restrictions on the startup and nurturing of the businesses. Indeed, the nation has taken to ease the bureaucracy involved in filling the necessary paperwork and gaining licensure for the entry into the business. Moreover, the corruption levels in the nation are also low. This means the cost of doing business is equally lower since you will not have to part with too much money to bribe the various officials. This is not to mention that the nation hardly has any restrictions on the repatriation of profits.

Adequate Support:

Lastly, the nation confers adequate support to both the local and foreign investors. These come in the forms of bureaucracy while starting a business, tax incentives, advisory and consultancy services, assistance in repatriating profits, and appropriate security. These support services are further complemented by excellent infrastructure and reduced costs of energy. By choosing to pour your money into the nation, you will enjoy the benefit of unhindered operations and higher profit margins.


Well, you have indeed received the bare minimum information you need as regards the investment sectors in Sri Lanka. It is not enough to receive this head knowledge. It pays to take the next extra step to invest in the nation. This is the only way you will be able to enjoy the benefits that are stated above. All the best as you consider taking the first major step!