Business
A 2007 Companies Act on New Zealand lines, with BOI incentives alongside
The Companies Act No. 7 of 2007 modernised Sri Lankan company law along New Zealand lines, replacing authorised capital with a solvency-test regime. Investment structuring turns heavily on whether a company is registered with the Board of Investment, which can grant tax and exchange-control concessions and is the practical gateway for foreign projects.
Governing law
- Companies Act, No. 7 of 2007 — Solvency-test based company law.
- Board of Investment Law, No. 4 of 1978 — Investment incentives and approvals.
In practice
Companies register with the Registrar General of Companies; a private company needs one director and one shareholder. Distributions require the directors to certify satisfaction of the solvency test. Foreign investment above sectoral thresholds needs BOI approval; some sectors are restricted or closed. Overseas companies establishing a place of business must register as such. BOI-registered and non-BOI companies face materially different tax and repatriation positions — establish status before structuring. Annual returns and audited accounts are filed with the Registrar; late filing penalties accrue per day.