Invest in Sri Lanka

Italy- Sri Lanka Investment relation in brief

Sri Lanka has been a preferred investment destination for Italian businesses. For the period of 2005- 2017, a total over USD 82 million Italian investment, in total of 18 projects including 14 exporters, have been attracted by Sri Lanka into the main sectors of textile and apparel, footwear, jewellery, hotel and restaurants, wine bottling etc.

Sri Lanka continues to position itself as a competitive investment destination in South Asia, supported by its strategic location, skilled workforce, market access, developing infrastructure and investor facilitation through the Board of Investment of Sri Lanka. In 2025, the BOI recorded USD 1,057 million in foreign direct investment inflows, reflecting renewed investor confidence and continued interest in Sri Lanka’s manufacturing, port development, tourism, apparel, rubber-based products, ICT, agriculture, real estate and value-added export sectors

Potential Sectors for Investments in Sri Lanka

Italian investors are further encouraged to invest in the construction industry in Sri Lanka, in line with the projects of Megapolis and Western Province Development, construction of new harbours, logistic facilities and free-trade industrial zones, Colombo Port City projects and the proposed Financial Center, schools and universities and highway and railway roads, value-added rubber sector including solid tyres and rubber gloves, mega-hotels, business hotels and BB hotels, iron and steel etc. There are a lot of investment potentials for Italian boat builders and the investors either on direct investment basis or the joint venture basis. This industry is also very viable in Sri Lanka hence it has the local raw materials supply like fibreglass, natural rubber etc, and the required high skilled labour etc from Sri Lanka.

Sri Lanka continues to position itself as a competitive investment destination in South Asia, supported by its strategic location, skilled workforce, market access, developing infrastructure and investor facilitation through the Board of Investment of Sri Lanka. Recent BOI material highlights opportunities across manufacturing, apparel and textiles, rubber-based products, logistics, renewable energy, tourism, real estate, agriculture, seafood processing, ICT and value-added export industries. As of June 2025, BOI reported 79 investment proposals with an estimated total value of USD 4.669 billion, reflecting renewed investor interest across greenfield and expansion projects. 

The Board of Investment of Sri Lanka (BOI) along with its most attractive investment incentives in the South Asia region regularly publishes project proposals that are available for such investment opportunities. Not only the investments in FDI, but Italian investors are also informed to invest in high yield institutional investments in Sri Lanka such as purchases of stocks, investing in debentures, treasury bills and bonds etc.

With regard to investment, it is also important to mention that Sri Lanka has entered into bilateral Investment Promotion & Protection Agreement and the Avoidance of Double Taxation Agreement signed with Italy in 1987 and 1984, respectively.