BOI to incentivise expansion by existing investors

Monday, 2 October 2023 01:58 - - {{hitsCtrl.values.hits}}

Program to encourage existing investors to retain profits and reinvest/expand business operations
To kick off “100 IT/ITES Companies” initiative
New Public Private Partnership initiative to enhance exports, jobs and technology transfer

BOI Chairman Dinesh Weerakkody

The Board of Investment (BOI) will be launching a new program for investor retention and expansion as well as a special “100 IT/ITES Companies” initiative.

BOI Chairman Dinesh Weerakkody said the investor retention program is targeted to encourage existing investors to retain their profits and reinvest/expand their business operations within the country. Under this initiative, existing BOI registered companies, with over 5 years in operation will be eligible to import an Electric Rechargeable Vehicle subject to the exemption of application of custom tariff up to an amount not exceeding $ 30,000, on the Cost, Insurance and Freight (CIF) value, upon fulfilling the qualifying criteria of investing an additional $ 3 million and generating a minimum of 50 employment opportunities through the expansion project. This is an addition to the duty-free imports of Raw materials, visa concessions and prevailing Enhanced Capital Allowances under the IR Act, including fast-track approvals.

Furthermore, BOI is hoping to commence a promotion campaign to attract 100 IT/ITES Companies with the assistance of the Private Sector.

This project is to encourage existing ICT companies to expand and to attract new enterprises engaged in Information Technology (IT), Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO), Business Process Management (BPM), Data Analytics and AI/ML, and E-commerce set up in the country.

Under this initiative, an ICT company that invests a minimum of $250,000 and generates 50 new local employment opportunities out of which 15 employees should be technically qualified will be granted a permit for the importation of one Electric Rechargeable Vehicle subject to the exemption of the application of custom tariff up to an amount not exceeding $ 30,000, on the Cost, Insurance and Freight (CIF) value. This will be in addition to the regular incentives offered by the BOI and under the IR Act. Deepening of the talent pool will be tied up to the campaign, Weerakkody added.

He said a new Public Private Partner initiative is expected to drive exports, create new job opportunities, technology transfer and knowledge transfer, and enhance the country's digital infrastructure and position Sri Lanka as a competitive player in the global ICT industry.

Furthermore, Weerakkody noted it will improve organisational and managerial skills and stimulate domestic investment across several sectors.