Sri Lankan Board of Investment (BOI)
Our plantation partner gained BOI approval in June 2009, which is basically a constitutional guarantee that safeguards the company and those who invest from government nationalisation and any loss of revenue that occurs through government negligence. If any loss of revenue does occur through negligence on the part of government, then the company will be awarded with prompt and adequate compensation, as all disputes are settled by the International Convention for the Settlement of Investment Disputes (ICSID).
In brief the BOI approval provides the following protection for the company:
- 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 Investment Disputes (ICSID).
Furthermore, certain incentives granted to a BOI approved 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.
