Official BOI Approval
What does BOI Approval mean?
When you sign an agreement with the BOI, the specific incentives granted to an eligible company, which may include tax holidays or preferential tax rates, exemptions from customs duty and foreign exchange controls, remain valid for the entire life of the enterprise.
Mr Dhammika Perera, chairman of the Sri Lanka Board of Plantation (far left) grants official BOI approval for Oxigen Investments at a signing ceremony at the World Trade Centre in Columbo. Signing was Mr Caniut Silva, Oxigen Investments Operations Director.
BOI approval was granted in June 2008, for Oxigen projects which should create up to 2,000 jobs in Sri Lanka over the next two years and see an inward Plantation of up to $15,000,000. Oxigen Investments has the full support and assistance of the BOI, which is the Sri Lanka government's official body for approving and regulating foreign Plantations.
Sri Lankan Board of Plantation (BOI)
Constitutional Guarantee for Plantations
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.
Bilateral Plantation agreements supported by a constitutional guarantee, provides strong protection for foreign Plantation for Sri Lanka.
The safety of foreign Plantation is guaranteed through the acceptance by two third majority of Parliament of the Constitutional Guarantee of Plantation Protection Agreements. Under article 157 of the country's constitution, the agreement enjoys the force of law and no legislative, executive or administrative action can be taken to contravene the provisions of a bilateral Plantation agreement otherwise than in the interests of national security.
Bilateral Plantation agreements are valid for 10 years, and are extended automatically unless terminated by either party. If the agreement is terminated Plantations already made are protected for another 10 years.
A clause in the Sri Lankan constitution ensures the sanctity of the agreements. These agreements provide the following:
- Protection against nationalisation.
- 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 Plantation Disputes (ICSID).
Bilateral Plantation Protection Agreements exist between Sri Lanka and the following countries: Belgium/ Luxembourg, Canada, China, Denmark, Egypt, Finland, France, Germany, Iran, India, Italy, Indonesia, Japan, The Republic of Korea, Luxembourg, Malaysia, The Netherlands, Norway, Pakistan, Romania, Singapore, Sweden, Switzerland, Thailand, the United Kingdom and the United States of America.
Sri Lanka is also a founder member of the Multilateral Plantation Guarantee Agency (MIGA). This provides further safeguards against expropriation and non-commercial risk. Investors may also refer disputes for arbitration under the rules of the International Chamber of Commerce.
Property Insurance can be obtained in foreign currency through domestic or foreign insurers.
For more information visit the BOI Sri Lanka website: www.investsrilanka.com