Sri Lanka represents an excellent opportunity for food manufacturing and processing companies looking to benefit from shifting close to the growing customer base in Asia.
Potential areas for investment
- Fruits and vegetables (Canned, frozen, juices, pre-cut and readymade salads, dried and dehydrated)
- Value added coconut products
- Value added spice products
- Canned/bottled products
- Processed food
- Confectionery and bakery products
Why you need to consider investing in this sector
- Diverse range of raw products is available for processing
- Sri Lanka has Free Trade Agreements with India, Pakistan and Singapore which provides duty free access for selected processed food products exported to these markets from Sri Lanka
- Sri Lanka is a beneficiary of the GSP Plus facility offered by the European Union. Most of the processed food products have duty free/reduced duty access to the EU countries when exported from Sri Lanka.
- Companies can operate as Board of Investment (BOI) projects and benefit from incentives
- Income Tax rate applicable for export related earnings is half the general Income Tax rate
- Good domestic infrastructure