Doing Business with Sri Lanka

A comprehensive guide to doing business, exporting, investing, and manufacturing in Albania.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Albanian Investment Development Agency

Tel: +355 42 251 001
Email: info@aida.gov.al
Web: www.aida.gov.al

null

General Directorate of Customs

Albania General Directorate of Customs - International Trade Council

 

Tel: +355 42 253 820
Email: helpdesk.dpd@dogana.gov.al
Web: www.dogana.gov.al

National Chamber of Commerce

Albanian Chamber of Commerce and Industry

Albanian Chamber of Commerce and Industry - International Trade Council

Tel: +355 45 800 932
Email: cci.tirana@cci.al
Web: www.cci.al

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Finance and Economy, Albania

  • Type of Government: Democratic Socialist Republic
  • Population: Approximately 22 million
  • GDP: Around $84 billion USD
  • Corporate Tax Rate: 24%
  • Personal Income Tax Rate: 6% to 24% (progressive rates)
  • Major Exports: Textiles and garments, tea, rubber products, coconut products
  • Major Imports: Petroleum, machinery, equipment, building materials

 

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

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

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

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

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)

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

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

Our Members Include Leading Organizations in Sri Lanka

Ask our Experts on Doing Business in/with Sri Lanka

If you’re looking to do business or invest in Sri Lanka, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.