Doing Business with Sri Lanka

Exporting goods to Sri Lanka involves several key steps. Here’s a detailed guide:

1. Research Market Requirements

   • Understand Sri Lanka’s import regulations and product standards.

2. Identify Your Product’s HS Code

   • Determine the Harmonized System (HS) code for tariff and regulation details.

3. Prepare Documentation

   • Gather necessary export documents: commercial invoice, packing list, certificate of origin, and bill of lading.

4. Check Tariff and Non-Tariff Barriers

   • Verify any tariffs and ensure compliance with non-tariff measures.

5. Select a Reliable Freight Forwarder

   • Choose a logistics provider experienced in shipping to Sri Lanka.

6. Comply with Labeling and Packaging Regulations

   • Ensure your products meet Sri Lankan labeling and packaging standards.

7. Arrange for Insurance

   • Secure insurance to cover potential shipping risks.

8. Submit Customs Declaration

   • Work with your freight forwarder to submit the necessary customs declaration.

9. Track and Confirm Delivery

   • Monitor the shipment to ensure it reaches the destination safely.

Key Contacts

• Sri Lanka Customs
  • Website: Sri Lanka Customs
• Sri Lanka Export Development Board
  • Website: EDB Sri Lanka

Importing goods into Sri Lanka involves several key steps. Here’s a detailed guide:

1. Register as an Importer

   • Ensure your business is registered with the Department of Commerce and obtain an Importer’s License.

2. Classify Your Goods

   • Determine the Harmonized System (HS) code for your products to understand tariffs and duties.

3. Check Import Requirements

   • Verify if your goods need specific licenses or permits under Sri Lankan regulations.

4. Prepare Documentation

   • Gather necessary documents: commercial invoice, bill of lading, packing list, and certificate of origin.

5. Select a Customs Broker

   • Engage a licensed customs broker to assist with the import process.

6. Submit Import Declaration

   • File the import declaration through the ASYCUDA system with Sri Lanka Customs.

7. Pay Duties and Taxes

   • Calculate and pay any applicable import duties and VAT.

8. Arrange for Cargo Clearance

   • Coordinate with your freight forwarder or customs broker for the clearance and delivery of goods.

Key Contacts

• Sri Lanka Customs
  • Website: Sri Lanka Customs
• Department of Commerce, Sri Lanka
  • Website: Department of Commerce

Incorporating a company in Sri Lanka involves several key steps. Here’s a detailed guide:

Step-by-Step Guide

1. Choose a Business Structure
   • Decide on the type of company (e.g., Private Limited Company).
2. Reserve a Company Name
   • Reserve your company name through the Department of the Registrar of Companies.
3. Prepare Articles of Association
   • Draft and notarize the Articles of Association.
4. Register the Company
   • Submit the registration application, including the Articles of Association, to the Registrar of Companies.
5. Obtain Tax Identification Number (TIN)
   • Register for a TIN from the Inland Revenue Department.
6. Register for VAT
   • If applicable, register for VAT with the Inland Revenue Department.
7. Open a Corporate Bank Account
   • Set up a bank account in the company’s name.
8. Register for Social Security
   • Enroll employees in the Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF).

Costs

• Registration Fees: Vary depending on the type and size of the company.
• Legal and Notary Fees: Additional costs for document preparation and notarization.

Key Contacts

• Department of the Registrar of Companies
  • Website: Registrar of Companies
• Inland Revenue Department
  • Website: Inland Revenue Department

Setting up a manufacturing plant in Sri Lanka involves several key steps. Here’s a detailed guide:

1. Conduct a Feasibility Study

   • Assess market demand, location suitability, and resource availability.

2. Choose a Business Structure

   • Decide on the type of business entity, such as a Private Limited Company.

3. Register the Company

   • Register your business with the Department of the Registrar of Companies.

4. Secure Financing

   • Arrange funding through banks or investors.

5. Select a Location

   • Choose an industrial area with access to necessary infrastructure and resources.

6. Obtain Necessary Permits and Licenses

   • Apply for environmental, health, and safety permits from local authorities.

7. Design and Construct the Facility

   • Hire architects and contractors to design and build the plant according to regulations.

8. Purchase and Install Equipment

   • Acquire machinery that meets safety and operational standards.

9. Hire and Train Employees

   • Recruit skilled workers and provide necessary training.

10. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors.

Key Contacts

• Board of Investment of Sri Lanka
  • Website: BOI Sri Lanka
• Ministry of Industry and Commerce
  • Website: Ministry of Industry and Commerce

Registering a trademark in Sri Lanka involves several key steps. Here’s a detailed guide:

1. Conduct a Trademark Search

   • Check the availability of your trademark through the National Intellectual Property Office (NIPO).

2. Prepare Your Application

   • Gather necessary details, including the trademark design and list of goods/services.

3. File the Application

   • Submit your application to NIPO, either online or in person.

4. Pay the Application Fee

   • Fees vary; generally around LKR 17,500 for a single class.

5. Application Examination

   • NIPO examines the application for compliance and potential conflicts.

6. Publication for Opposition

   • If approved, the trademark is published for opposition, allowing others to contest it.

7. Receive Registration Certificate

   • If no oppositions are filed, you receive the official trademark registration certificate.

Costs

• Application Fee: Approximately LKR 17,500 per class.

Key Contacts

• National Intellectual Property Office (NIPO)
  • Website: NIPO Sri Lanka

Resolving commercial disputes in Sri Lanka involves several key steps. Here’s a detailed guide:

1. Consult Legal Counsel

   • Engage a lawyer experienced in Sri Lankan commercial law for advice.

2. Attempt Negotiation

   • Try to resolve the dispute amicably through direct negotiation with the other party.

3. Mediation

   • Use mediation services to facilitate a resolution. This approach is often faster and less costly.

4. Arbitration

   • Consider arbitration for a binding decision. This can be an effective alternative to court proceedings.

5. Litigation

   • If necessary, file a lawsuit in the Commercial High Court. Prepare for a formal legal process.

6. Enforcement of Judgments

   • Ensure the court’s decision is enforced through the relevant authorities.

Costs

• Legal Fees: Vary depending on the complexity and duration of the dispute.
• Court Fees: Required for litigation and depend on the case specifics.
• Mediation/Arbitration Fees: Vary based on the service provider.

Key Contacts

• Sri Lanka Ministry of Justice
  • Website: Ministry of Justice

When considering doing business in Sri Lanka, it’s important to understand various factors that can impact your operations. Here’s an overview:

Social Factors

• Language
  • Sinhala and Tamil are official languages. English is widely used in business.
• Work Culture
  • Emphasizes hierarchy and respect for authority. Building personal relationships is important.

Cultural Factors

• Business Etiquette
  • Formal greetings and business cards are common. Meetings may start with small talk.
• Dress Code
  • Business attire is generally formal, especially in urban areas.

Political Factors

• Government Structure
  • Democratic Socialist Republic with a multi-party system.
• Regulatory Environment
  • Ongoing reforms to improve business climate and regulatory framework.

Foreign Exchange

• Currency
  • Sri Lankan Rupee (LKR) is the official currency.
• Exchange Rate
  • Subject to fluctuations; monitoring is essential for financial planning.

Rule of Law

• Legal System
  • Based on English common law, with protections for contracts and business operations.
• Intellectual Property
  • Governed by national laws; enforcement can be challenging.

Additional Resources

• Board of Investment of Sri Lanka
  • BOI Sri Lanka
• Sri Lanka Export Development Board
  • EDB Sri Lanka
• Ministry of Industry and Commerce
  • Ministry of Industry and Commerce