Over the past few years, there’s been a noticeable increase in inquiries from foreign entrepreneurs and investors looking to register companies in Sri Lanka — especially in industries like restaurants, IT, logistics, exports, and tourism.
A common question that keeps coming up is:
“Can a foreigner own 100% of a company in Sri Lanka?”
The answer is: Yes — but it depends on the sector.
Let’s break it down and talk about where things stand today, and what we might expect in the near future.
✅ Which Sectors Allow 100% Foreign Ownership Today?
As of 2025, the Sri Lankan government allows full foreign ownership (100%) in several business sectors — especially those that do not involve sensitive national interests, land ownership, or local trading.
Here are some key sectors where foreigners can fully own a Private Limited (Pvt Ltd) company:
1. Information Technology (IT) and Software Services
This is one of the most foreign-friendly sectors. If you’re setting up a software company, outsourcing service, app development studio, or a remote support business, you can own 100% of the shares without any restriction.
No minimum investment is required if your clients are overseas and your revenue is export-based.
2. Restaurants, Cafes & Hospitality Services
Foreigners can own 100% of a restaurant, coffee shop, or catering service, provided they meet local health and licensing standards.
However, if you’re planning to lease land or operate in a highly touristic area, you may need BOI approval or urban council permits.
3. Export-Oriented Businesses
If you’re exporting garments, spices, tea, craft goods, or digital services, Sri Lanka not only allows foreign ownership but also offers incentives via the Board of Investment (BOI).
These types of businesses are seen as valuable for bringing in foreign currency and boosting the trade balance.
⚠️ Which Sectors Still Have Restrictions?
Foreigners cannot fully own or operate in some sectors unless certain conditions are met:
| Sector | Ownership Restrictions |
|---|---|
| Retail Trading (local market) | Must invest at least USD 1 million to own 100% |
| Land Ownership | Foreigners cannot buy land outright, but can lease for up to 99 years |
| Freight forwarding / Customs clearance | Must be partnered with a licensed local agent |
| Certain financial services & media | Restricted or highly regulated |
That said, many workarounds exist, such as forming BOI-approved ventures, leasing land through the company, or partnering with local professionals for compliance purposes.
📈 The Shift: More Sectors May Open Up to 100% Foreign Ownership
Sri Lanka is in a critical phase of economic recovery, and the government is exploring policy changes to attract more foreign direct investment (FDI). According to recent budget and investment policy talks:
- More sectors may soon be opened to full foreign ownership, especially in:
- Logistics
- Tourism
- Education
- Renewable energy
- Agritech and food processing
- Reforms are also being considered to simplify registration, reduce bureaucracy, and encourage startups with foreign founders.
This means that, in the near future, foreign investors may see fewer restrictions and more opportunities in a wide range of industries.
💼 What Do Foreigners Need to Register a Company in Sri Lanka?
Here’s a quick summary of what a foreigner typically needs:
- Certified copy of passport
- Proof of address (for bank/TIN)
- Director consent letter
- Name reservation via eROC
- Articles of Association
- For company shareholders: Incorporation documents of the foreign entity
- Minimum of one natural-person director
- Application to obtain TIN (tax number)
You can own shares as an individual or via a foreign company.
🌍 Final Thoughts: Why Sri Lanka?
Despite challenges in recent years, Sri Lanka remains strategically located, English-speaking, and open to international business. It offers:
- Access to South Asian and Southeast Asian markets
- An increasingly digital government infrastructure
- A skilled, affordable workforce
- Opportunities in untapped industries
If you’re an international entrepreneur looking for a base in Asia — whether for tech, hospitality, export, or investment — Sri Lanka is more open than you might think.
And with policy changes expected to continue, even more sectors may welcome 100% foreign ownership in the near future.
