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The Department of Import and Export Control continues to administer the import and export measures only on selected products on the basis of economic, national security, health and environment reasons. (...)

(...) The NUG (National Unity Government) has also identified key thrust areas for potential investment over US$2 billion which are; Oil refinery, renewable energy, integrated car manufacturing, manufacturing steel bridges for the region, fertilizer, manufacturing triple super phosphate, satellite technology, air craft repair and logistical support and integrated sugar industry.

(...) The national agricultural policy also includes measures to increase domestic production to ensure food security, enhance productivity and reduce unit costs of production, improve living standards and income of farming communities, application of environmentally friendly techniques in agriculture.

(...) The clothing sector has also gained a prestigious image through their due consideration to ethical manufacturing (concept of "Garments without Guilt"), sustainable environment policies (Green Factories) and corporate social responsibilities.

(...) Export prohibitions are maintained for reasons of public health, protection of endangered species and the environment, and concern items such as explosives and drugs. (...)

(...) In the energy sector, Sri Lanka has diversified its energy sources during the period by starting to use coal and promoting alternative sources such as wind and solar; achieved 100% countrywide electrification; and is expected to resume its first oil exploration activities in more than 25 years. (...)

The Indian Ocean Rim Association (IORA) was created in 1997 to enhance economic cooperation among the countries of the Indian Ocean Rim. It comprises 21 member States, including Sri Lanka. They aim to build and expand understanding through consensus and cooperation in a number of areas including maritime safety and security; trade and investment facilitation; fisheries management; disaster risk management; academia, science and technology; tourism and cultural exchanges; and gender empowerment. In terms of trade, IORA has recognized that effective trade linkages should be established for member States in several sectors, including: food, SMEs, financial services, mining, tourism, the ocean economy, and renewable energy. For 2016, IORA has recognized that enhancing trade and investment will be an area of priority.

In October 2015, IORA (Indian Ocean Rim Association) member States agreed to a Maritime Cooperation Declaration that contains six main elements supporting the maritime sector in the region. These are: promoting sustainable development of coastal and small island areas through sustainable tourism and leisure activities; encouraging increased investment in and development of sustainable and resilient maritime infrastructures; encouraging cooperation in shipping, logistics, and allied industries; enhancing cooperation in sustainable marine economic development and food security through responsible fisheries management and marine resource preservation; supporting and strengthening regional cooperation in challenges such as illegal unreported and unregulated fishing, piracy, irregular movement of people, marine pollution, drug trafficking, illegal trafficking in wild life, and disasters; and increasing engagement between research institutions on maritime education, research, development, and innovation. According to the authorities, there has been no tangible progress in these areas.

Table 2.2 Investment restrictions, exclusions, or limitations, 2016
- Subject to: Limitations
- Provisions: b. The permission shall apply in respect of the shares of a company carrying on or proposing to carry on any of the businesses up to the percentage of the issued capital of the company for which percentage either general or special approval has been granted by the Government of Sri Lanka or any legal or administrative authority set up for the approval of foreign investment in such businesses
- Sectors/businesses: (...) any industry manufacturing poison, narcotics, alcohols, dangerous drugs and toxic, hazardous, or carcinogenic material; (...)

Table 2.3 Overview of investment incentives, 2010-31 October 2014
- Category: Medium enterprises (new enterprises)
- Sub-category or general conditions: (...) 3. Services: (...) creative work including art work and mini hydro power projects (...)
- Qualifying criteria: Investment of Rs 50 Mn and above
- Tax incentive or period (years): Up to 6 years
(...)
- Category: Large enterprises (new enterprises)
- Sub-category or general conditions: (...) 3. Services: (...) ‐ Power generation using renewable resources; ‐ Provision of any sanitation facility or waste management systems; -Processing and solid waste management; (...)
- Qualifying criteria: Minimum investment of Rs Mn: 300-500
500-700
700-1,000
1,000-1,500
1,500-2,500
Above 2,500
- Tax incentive or period (years): 6
7
8
9
10
12