📈 BOI Plans Hambantota Zone Expansion & New Incentive Scheme

The Board of Investment (BOI) is preparing a new incentive scheme and expanding the investment zone at Hambantota Port, prioritizing clean energy, EV production, and vehicle parts, BOI Board Member Vish Govindasamy announced at SLEIS 2026. • Key Operational & Policy Initiatives: • New Incentive Scheme: Drafting updated incentives to attract future foreign direct investment (FDI) while prioritizing reinvestments from existing flagship investors. • National Land Database: BOI now holds a digitized master database identifying land availability and ownership across state agencies to streamline site allocation. • Zone Expansion: Developing 3 new zones in the Northern Province under BOT models. Currently, 278 active companies across 17 BOI zones account for ~$3 Bn in exports. • Growth Constraints & Reforms: • Policy Inconsistency: Cited overnight regulatory shifts as a primary barrier to long-term FDI; advocates guaranteed policy stability over 3–10 year horizons. • Labour & Bureaucracy: Stressed urgent labor law reform to improve regional competitiveness and highlighted efforts to streamline one-stop inter-agency approvals across 30–40 state entities. • Market Context & Market Access: • Maintains 100% foreign ownership in most sectors and 100% profit repatriation with MIGA coverage and 46 double-taxation relief agreements. • Trade agreements with India, Pakistan, and Singapore provide export access to ~2 Bn regional consumers, with BOI strongly prioritizing export-oriented projects.