Why Sri Lanka Entrepot Trade ?
Ideal Geographical Location
- Sri Lanka’s locational advantage of being in the path of East-West maritime route
- Centrally located with direct flights to Asia, Middle East and Europe
- Sri Lanka has a favorable tropical climate all year round which enables undisrupted movement of cargo vessels.
Conducive climate for business
- FDI friendly policies
- Placed well in the ease of doing business ranking relative the countries in the South Asian region.
- Easy access to information under the recently introduced Right to Information Act
Enhanced government focus to develop the industry
- Introduction of Commercial Hub Regulations in 2013, having recognized the importance of the Entrepot Trade.
Local Regulations applicable for Entrepot Trade can be differentiated in to two categories based on following distinction.
|Entrepot Trade under the Commercial Hub Regulations in Gazette Notification No. 1818/30 of July 11, 2013||Entrepot Trade under the Customs Ordinance|
|Minimum Investment in Fixed Assets||US$ 5 million within 1 year from the BOI Agreement. 65% of the total investments should be made from foreign sources.||Not specified|
|Annual re-export/ turnover||Not less than US$ 20 million in 5 years from the date of commencement of operations||No minimum requirement|
|Designated Locations||Designated Free Ports, Designated Bonded Areas and Specified Bonded Areas||Bonded areas in ports and airports under Customs supervision|
- Ongoing Port Expansion
Conducive general infrastructure for operations
- Advanced telecommunication and information technology services
- Well- developed road network with express ways.
- Reliable utility services at competitive rates. Only South Asian country with 24/7 electricity supply
Sri Lanka Customs readiness to handle volume growth with Electronic Data Interchange (ASYCUDA World)
- Relatively speedy customs clearance
- Advanced real time management information systems
Investment Guide to venture in Sri Lankan Entrepot Trade More Info