Doing Business in Sri Lanka
Germany is Sri Lanka's second largest investor from the European Union. Many of the German companies operating in Sri Lanka are global leaders in their field of specialization. The investment areas include apparels, hosiery knitwear, surf sails, textiles, electronic products, light/heavy engineering, rubber based products such as tires and automobile spare parts, coir products, wooden/soft toys, chemicals and dyes, gems and jewellery, tourism and recreational projects.
Leading German companies operating in Sri Lanka include:
- Kramski Lanka (Pvt) Ltd (Kramski GMBH Germany) - Steel/High precision moulds
- Aqua Dynamics (Pvt) Ltd - Windsurfing sails
- BASF Finlay (Pvt) Ltd - Chemicals
- Bodyline (Pvt) Ltd (Triumph International) - Foundations garments
- Eskimo Fashion Knitwear (Lanka) Ltd - Knitwear
- Globe Knitting (Pvt) Ltd - Knitwear
- Boehm & Leckner Multi Moulds (Pvt) Ltd - Tools/ injection moulds
- Dial Textile Industries Ltd (Adolf Ahlers AG) - Garments
- Lanka Hiqu Ltd - Magnetic heads
- Prestige Automobile (Pvt) Ltd (BMW) - Automobiles)
- Target Industry Sectors from Germany
- Metalworking & Light Engineering
- Mineral based industry/ ceramic products
- IT and IT enabled services
- Textile / apparels and accessories
- Rubber based/ automotive components
- Tourism/ Recreation projects
- Infrastructure projects
- Investment Protection and Guarantees
The bilateral agreements that exist between Sri Lanka and Germany provide for the following:
- Protection against nationalization
- Prompt and adequate compensation if required
- Free remittance of earnings, capital and business fees
- Settlement of disputes under the International Convention for the Settlement of Investment Disputes (ICSID).
- Sri Lanka is also a founder member of the Multinational Investment Guarantee Agency (MIGA). This provides further safeguards against expropriation and non- commercial risk. Investors may also refer disputes for arbitration under the rules of International Chamber of Commerce.
Sri Lanka has signed a double tax agreement with Germany in 1979 and it provides reduce tax rates on dividends interest and royalties.
The first bilateral investment agreement between the two countries was signed as far back as 1963.
Further information could be found from the Board of Investment of Sri Lanka, the One Stop Shop for the Foreign Investors who are interested to reach this investment paradies.