- Award-Winning · 1080+ Clients · 45+ Countries
Start a Business in Sri Lanka — Ltd, 30% CIT, Colombo Port City 0%, India's Closest Neighbour
Sri Lankan company formation involves incorporating a Private Limited Company through the Registrar of Companies (ROC) via the EROC online system, with optional Board of Investment (BOI) registration for incentive access. Sri Lanka is India’s closest neighbour (30km across the Palk Strait, 1-hour flight Chennai-Colombo). The standard CIT rate is 30% (raised post-crisis), but BOI tax holidays reduce rates significantly. The Colombo Port City a special economic jurisdiction offers 0% CIT for 40 years, making it one of the world’s most generous long-term incentives. The India-Sri Lanka FTA (ISFTA) provides preferential tariffs India’s only bilateral FTA in South Asia. SBI operates in Sri Lanka. The India-Sri Lanka DTAA provides just 7.5% on dividends among the most competitive in India’s treaty network. Post-2022 economic stabilisation under the IMF programme is restoring investor confidence. Comply Globally has helped 1,080+ entrepreneurs across 45+ countries.
- By Dr. Anil Gupta, Global Expansion Advisor
- Updated April 2026
- 15 min read
500+
Companies launched
45+
Countries served
4.9
Client rating
+12 today
Founders onboarded
Incorporated in 7 days
Average turnaround time
30%
CIT (BOI Lower)
0%
Port City 40yr!
FTA
India-SL Free Trade
SBI
Bank in Sri Lanka
30km
From India
OUR SERVICES IN SRI LANKA
What We Help You With in Sri Lanka
Leverage our expertise for company formation, EXIM, IOR/EOR, visas,
banking, and ongoing compliance all from a single point of contact.
Most Popular
Company Formation
Register a Sri Lankan Private Limited Company through the Registrar General’s Department (RGD) with complete remote assistance from India. We handle name reservation, incorporation documents, director/shareholder structuring, registered office support, tax registrations, and post-incorporation compliance. Sri Lanka permits 100% foreign ownership in most sectors subject to sector-specific approvals. Average Comply Globally turnaround: 5–10 business days. Starting from ₹55,000.
Tax & Compliance Advisory
Navigate Sri Lanka’s corporate income tax system, VAT compliance, transfer pricing regulations, annual returns, bookkeeping, payroll, and Inland Revenue filings. We help optimise your structure under the India–Sri Lanka DTAA to minimise double taxation and improve cross-border efficiency. Sri Lanka offers sector-specific incentives for exports, IT, tourism, manufacturing, and strategic investments through the Board of Investment (BOI).
Most Popular
FEMA & RBI Compliance
We handle BOTH sides simultaneously: Sri Lanka incorporation AND Indian FEMA compliance. This includes ODI filings with your AD bank, Annual Performance Reports (APR), RBI FLA returns, foreign investment reporting, and Foreign Tax Credit (FTC) documentation under Indian tax laws. This dual-country execution capability remains one of our strongest differentiators for Indian founders expanding internationally.
Visas & Immigration
Business visas, investor visas, residence approvals, work permits, and dependent visa assistance for Indian entrepreneurs and professionals entering Sri Lanka. We assist with Department of Immigration & Emigration procedures, documentation, renewals, and local compliance requirements for foreign directors and employees.
EXIM & Logistics
Import/export registrations, customs advisory, freight coordination, IOR/AOR/EOR support, sourcing assistance, and Sri Lanka–India trade facilitation. Sri Lanka’s strategic Indian Ocean location and Colombo Port connectivity make it an important gateway for South Asia, Middle East, and ASEAN trade routes.
Cross-Border Banking
Corporate account opening assistance with leading Sri Lankan and international banks including Commercial Bank, HNB, Sampath Bank, HSBC, and Standard Chartered. We help prepare KYC documents, business plans, projected financials, and compliance paperwork for smoother onboarding. Depending on the bank, video KYC or a single in-person visit may be required.
- 1080+ Clients Served
- 45+ Countries
- 4.7★ Trustpilot
- Avg 4hr Response
- 100% Compliance Record
Why Partner With Comply Globally?
Our 4 Brand Promises — Backed by Results
These are not marketing claims. They are measurable operational standards tracked
and verified across 1,080+ client engagements worldwide.
Speed of Action
We respond within 4 hours. Average Sri Lanka company incorporation: 5–10 business days depending on approvals and sector requirements.
Fast-track incorporation support available
Accuracy & Competence
Zero compliance failures across 1,080+ engagements. Every filing is reviewed by a dedicated country specialist before submission.
100% filing accuracy · 4.7★ rating
Ease of Doing Business
One contact for everything Sri Lanka incorporation AND Indian FEMA compliance handled simultaneously, without multiple vendors or fragmented coordination.
Single Point of Management · 45+ countries
Cost Competitiveness
Transparent, all-inclusive pricing with zero hidden charges. Consistently 30–40% more cost-effective than many traditional consulting firms for comparable scope and support.
High-value international expansion support
“Initially I thought the process of expanding internationally would be extremely complicated, but Comply Globally handled everything efficiently from incorporation to banking and compliance. Their responsiveness and execution quality exceeded expectations.”
Sri Lanka
TAX FRAMEWORk
What Is the Corporate Tax Rate in Sri Lanka?
Sri Lanka’s standard corporate income tax rate is generally 30%
According to the Inland Revenue Department (IRD) of Sri Lanka, resident and non-resident companies are taxed on Sri Lanka-sourced income, with standard corporate tax rates generally around 30%, while certain industries and export-oriented businesses may qualify for concessionary rates or investment incentives.
Sri Lanka also imposes VAT on taxable supplies and services, with additional sector-specific taxes applicable in selected industries. Through the India Sri Lanka DTAA, Indian businesses can reduce double taxation exposure and optimise withholding taxes on cross-border payments such as dividends, royalties, and technical service fees.
Sri Lanka continues to attract foreign investors through strategic access to South Asian shipping routes, lower operational costs, growing tourism infrastructure, and export manufacturing opportunities.
Sri lanka vs India vs Singapore vs Malaysia— Tax Comparison
| Factor | 🇱🇰Sri Lanka | 🇮🇳India | 🇸🇬Singapore | 🇲🇾Malaysia |
|---|---|---|---|---|
|
CIT Rate
|
30% (standard) | 25.17% | 17% | 24% |
|
Capital Gains Tax
|
0% (abolished 2002) | 10–20% | 0% | 0% |
|
Dividend WHT
|
15% (non-resident) | 10% | 0% | 0% |
|
VAT / GST
|
18% | 18% (avg GST) | 9% | 8% |
|
DTAA Network
|
~45 treaties | ~95 treaties | ~90 treaties | ~75 treaties |
|
Ease of Doing Business
|
#99 (World Bank) | #63 | #1 | #12 |
|
Tourism / Export Services Tax
|
0% (export services exempt) | 18% GST (tourism) | 9% GST (tourism) | 8% SST (tourism) |
|
Investment Incentives
|
BOI: 0–15% CIT up to 12 yrs | Startup India (limited) | Startup: 0–4.25% for 3 yrs | Pioneer: 70–100% exemption |
Free Resource
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with every key date — delivered via WhatsApp and email within 24 hours.
What Our Clients Say
Our Latest Insights
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Frequently Asked Questions
Starting a Business in Sri Lanka
Yes. Foreign investors can own 100% of a Sri Lankan Private Limited Company in most sectors, subject to sector-specific restrictions and approvals where applicable. Many export, tourism, IT, and manufacturing sectors actively encourage foreign investment.
Sri Lanka company registration generally takes around 5–10 business days depending on documentation readiness, business activity approvals, and post-incorporation registrations.
Sri Lanka’s standard Corporate Income Tax (CIT) rate is generally 30%. However, concessionary rates and incentives may apply for.
- Export-oriented businesses
- IT and technology services
- Tourism projects
- BOI-approved investments
- Strategic infrastructure projects
Special investment zones and BOI structures may significantly reduce effective taxation.
Colombo Port City is a special economic and financial zone offering one of the world’s most attractive long-term tax incentive frameworks, including.
- Up to 0% Corporate Income Tax for 40 years
- Foreign exchange flexibility
- International financial services incentives
- Strategic investor benefits
The project is designed to position Sri Lanka as a major South Asian financial and logistics hub.
Yes. The India Sri Lanka DTAA helps reduce double taxation and improve tax efficiency for Indian businesses investing in Sri Lanka. The treaty provides favourable withholding tax treatment on dividends and certain cross-border payments.
Sri Lanka offers.
- Geographic proximity to India
- Strong shipping connectivity
- Access to Indian Ocean trade routes
- India–Sri Lanka Free Trade Agreement (ISFTA)
- Competitive operating costs
- Growing tourism and logistics sectors
Its location makes it valuable for regional trade, warehousing, shipping, sourcing, and export operations.
Key growth sectors include.
- Tourism & hospitality
- Logistics & shipping
- IT & BPM services
- Export manufacturing
- Renewable energy
- Food processing
- Infrastructure
- Education & healthcare services
Post-crisis reforms and IMF-backed stabilisation measures are improving investor confidence.
Indian businesses expand into Sri Lanka because of.
- Close cultural and trade ties
- Fast access from South India
- Favourable DTAA benefits
- Strategic Indian Ocean location
- Growing tourism and services economy
- Lower operational costs compared to larger Asian hubs
Sri Lanka is increasingly used as a regional gateway for South Asian and maritime trade operations.
Ready To Start Your Sri Lanka Expansion?
1,080+ entrepreneurs and businesses have expanded globally with Comply Globally.
Book
a free 30-minute consultation with our Sri Lanka market-entry specialists.