Frequently asked questions

Foreign Exchange

Are there foreign exchange controls in Sri Lanka?

Yes, foreign exchange transactions are regulated by the Department of Foreign Exchange of the Central Bank of Sri Lanka under the Foreign Exchange Act No. 12 of 2017, the regulations and directions issued thereunder.

  • Sri Lanka Rupees/assets can be converted into foreign currency and freely transferred/remitted outside Sri Lanka if the remittance is for a current transaction or a permitted capital transaction 
 
  • Persons holding foreign currency accounts in banks in or outside Sri Lanka can freely transact with foreign currency held in such accounts. 
 
  • Restrictions pertaining to the remittance of foreign exchange may be imposed by the relevant Minister where the Monetary Board advises the Minister of a potential threat to the financial stability of Sri Lanka.

The following are considered current transactions: 
  1. payments due in connection with foreign trade, other current business, including services, and normal short-term banking and credit facilities; 
  2. payments due as interest on loans and as net income from other investments; 
  3. payments of moderate amount for amortization of loans or for depreciation of direct investments; and 
  4. moderate remittances for family living expenses
  A capital transaction is an international transaction (not being a current transaction) which necessitates a transfer of foreign exchange into or from Sri Lanka. Capital transactions specifically permitted by regulations issued under the Foreign Exchange Act are generally referred to as “permitted investments” or “permitted capital transactions”. Special permission may be sought from the Monetary Board of the Central Bank in respect of a capital transaction which is not recognized as a permitted investment

Yes, proceeds of permitted investments (i.e. permitted capital transactions) are repatriable out of Sri Lanka. Where a particular investment is required under applicable law to be routed through an Inward Investment Account opened by the investor, the proceeds of such investment must also be credited into and remitted through the same Inward Investment Account.

Yes, the Foreign Exchange Act No. 12 of 2017 of Sri Lanka applies to investments or persons engaged in business in the Colombo Port City.

Intellectual Property

  1. If there is any opposition, the NIPO will send the applicant a copy of same.
  2. Thereafter the applicant is required to forward observations against the grounds of opposition.
  3. The NIPO will conduct an inquiry if necessary into the opposition with the participation of the applicant and the opponent. After the inquiry, the mark may get registered or refused.
  4. If it is refused the applicant can challenge the decision in the Court.

European Union grated GI status to Ceylon cinnamon on February 2, 2022, ensuring that only cinnamon grown in the country can be marketed as “Ceylon Cinnamon.” This is expected to protect Sri Lanka’s cinnamon industry from imitation and misrepresentation in global markets. Sri Lanka officially established a GI Registry on 27 February 2025.

To be considered eligible, you'll need to either be:
  1. A national of one of the Madrid System member countries,
  2. A resident of one of the Madrid System member countries, or
  3. Have an industrial or commercial establishment in one of the Madrid System member countries.

The government gave the nod for Sri Lanka to accede to the Madrid Protocol on February 23, 2020. NIPO is finalizing the draft enabling legislation for ratification of the international agreement. The NIPO with the assistance of the WIPO is now upgrading the system to enable Madrid Filings. A special Madrid unit will be formed at the NIPO to handle Madrid Applications in the near future.

Sri Lanka is not yet a member of the Madrid Protocol, which enables international registration. Therefore at present, international protection must be sought through separate applications in each desired country.

Yes, Trade marks pending registration /registered Trade marks can be assigned. A Power of Attorney and a Deed of Assignment has to be filed at the National Intellectual Property Office together with the Form requesting such assignment.

A Letter of Consent is a written agreement by a trade mark owner formally grants permission for another party to use their registered trade mark for specific goods or services, even if the second party's mark is similar or identical. In Sri Lanka, the NIPO may accept a LOC where an applicant is responding to a refusal, if it determines that the coexistence of the marks will not mislead or confuse the public. However, acceptance is not guaranteed, as the NIPO will still assess whether the marks can coexist without causing consumer confusion. It must be noted that the NIPO of Sri Lanka does not accept Time-Specific LOC’s, although Region-Specific LOC’s and LOC’s for Specific Goods will be accepted. Further, a submitted LOC cannot be withdrawn while a filed mark is pending or after it is registered.

A change of name or address or an assignment of a trade mark may be made by filing the relevant application form together with documentary evidence and the prescribed fee at the NIPO.

No alterations can be made once the application is filed. However, minor typographical errors can now be corrected by submitting a request form and making the required payment. This request must be made immediately after filing and before the assigned officer examines the mark.

Trade marks can be filed in both colour and black and white. Filing in black and white provides broader protection, allowing the applicant to use the mark in any colour without needing a new application each time the colour changes. However, if a specific colour is claimed in the application, the mark must be used in that exact colour to maintain protection.

Such a Power of Attorney must be signed by the Applicant themselves or the authorized signatory of the Applicant. Where the authorized signatory of the Applicant signs the Power of Attorney, the name and designation of such authorized signatory must be stated in the document. Where the applicant has a seal, such seal must be affixed onto the Power of Attorney document. Notarization/legalization of the Power of Attorney is not required.

To file a trade mark application, the applicant must provide:
  1. details of the mark,
  2. the class of goods or services, and
  3. a clear representation of the trade mark.
If an agent is filing on behalf of the applicant, they must provide in addition to the above, a Power of Attorney for the purpose of trade mark filing is required to authorize representation.

  1. If there is any opposition, the NIPO will send the applicant a copy of same.
  2. Thereafter the applicant is required to forward observations against the grounds of opposition.
  3. The NIPO will conduct an inquiry if necessary into the opposition with the participation of the applicant and the opponent. After the inquiry, the mark may get registered or refused.
  4. If it is refused the applicant can challenge the decision in the Court.

Any person can oppose a trade mark application after it's been published in the Trade Marks Journal within a period of three months. Specifically, the proprietor of an earlier trade mark or earlier right may oppose on relative grounds, while anyone can oppose on absolute grounds.

A trade mark application may be rejected if the mark:
  1. is too generic, descriptive or lacks distinctiveness,
  2. is identical or confusingly similar to an existing registered trade mark, or
  3. violates public order, morality or legal restrictions may be denied registration in Sri Lanka.

A trade mark registered in Sri Lanka is valid for a period of 10 years from the date of application and is renewable on the payment of the fee for further periods of 10 years. Such mark can be renewed within a period of one year from the expiration of each period of ten years, by making an application renew such mark.

Trade marks registered in Sri Lanka are valid and enforceable only in the territory of Sri Lanka. However, priority can be claimed under the Paris Convention for the protection of Industrial Property in its member countries (within 6 months from the date of application in any of member countries).

Trade mark registration in Sri Lanka usually takes 4-6 years.

The steps involved in the registration of a trade mark in Sri Lanka are as follows:
  1. Conduct of a search of the records of the National Intellectual Property Office (NIPO) of registered trade marks;
  2. Filing the trade mark application;
  3. Examination of the trade mark application by the NIPO;
  4. If the trade mark is accepted, payment of the publication fee; In the event the registration of the trade mark is refused, the NIPO will hold an ex-parte inquiry.
  5. Once the trade mark is published in the government gazette, a period of three months is given for any opposition to be filed by a third party.
  6. If there is no opposition, the registration fee may be paid. In the event of any opposition, the NlPO will hold an opposition inquiry.
  7. Registration of the trade mark.

The National Intellectual Property Office (NIPO) of Sri Lanka is responsible for examining and registering trade marks.

No

Any person or body of persons corporate and unincorporated (ie. individual (s), companies, partnerships, associations etc.)

Trade mark registration in Sri Lanka is governed by the Intellectual Property Act No. 36 of 2003.

Real Property

No.  In terms of the Land (Restrictions on Alienation) Act No. 38 of 2014, non-nationals, foreign companies and companies incorporated in Sri Lanka with a direct or indirect foreign shareholding of 50% or more, are not permitted to acquire land in Sri Lanka after 01st January 2013, subject, however to the exemptions provided in the said Act.

A document relating to immovable property in Sri Lanka must be executed in accordance with the provisions of the Prevention of Frauds Ordinance No. 07 of 1840 of Sri Lanka (as amended) and the Notaries Ordinance No. 01 of 1907 of Sri Lanka (as amended) – i.e.  such document must be executed in writing, in the presence of a notary public and two witnesses being present together at the same time and place.

The stamp duty payable in respect of an instrument depends on the type of instrument executed – 
  1. Transfer of property – approximately 4% of the market value of the property, as determined by the relevant provincial council
  2. Gift of property – approximately 3% of the market value of the property, as determined by the relevant provincial council. This is also dependent on when the donor acquired the property – i.e. prior to March 1977 or subsequent to March 1977. 
  3. Lease of property – Approximately 1% of the total lease rental for the first 20 years of the lease. 
  4. Mortgage of property (immovable and movable) – Approximately 0.1% of the principal sum to be secured by the mortgage.
  Deed of Exchange –
  • if both properties are co-owned and are of equal value – Rs. 50/-. 
  • if both properties are co-owned but are of different values – approximately 4% of the difference of the market value of the two properties, as determined by the relevant provincial council. 
  • if is the properties are not co-owned but are of equal value – approximately 4% of the market value of one of the properties, as determined by the relevant provincial council.
  • if the properties are not co-owned and are not of equal value – approximately 4% of the market value of the higher valued property, as determined by the relevant provincial council

Yes. In terms of the Land (Restrictions on Alienation) Act No. 38 of 2014, foreigners may purchase condominium properties in Sri Lanka, provided that the entire value shall be paid up front through an inward foreign remittance prior to the execution of the relevant deed of transfer.

Tax

Yes. Sri Lanka has entered into double taxation treaties with various countries. Australia, Canada, China, India, Germany, the United Kingdom, the United States of America and Vietnam are a few among them.

Yes, the Inland Revenue Act provides for withholding taxes on different types of payments.   
  • a withholding tax referred to as the Advance Personal Income Tax should be deducted from the salaries paid to employees by an employer at the rates specified in the Inland Revenue Act.
 
  • withholding tax referred to as the Advance Income Tax should be withheld from the payment of the following:
  1. dividend at a rate of 15%, 
  2. interest or discount paid at the rate of 05%, 
  3. rent payments made to a resident person exceeding Rs. 100,000 at the rate of 10%, and
  4. all other payments including royalty, that has a source in Sri Lanka at the rate of 14%. 
 
  • a withholding tax at the rate of 14% of the payment will be required to be withheld where a person pays a service fee or an insurance premium with a source in Sri Lanka to a non-resident person.
 
  • a withholding tax of 5% of the payment will be required to be withheld by the payer of the payments made as service fees which has a source in Sri Lanka and exceed Rs. 100,000, which includes, inter alia – 
  1. for teaching, lecturing, examining, invigilating, or supervising an examination.
  2. as a commission or brokerage to a resident insurance, sales, or canvassing agent; and
  3. for services provided by an individual in the capacity of independent service provider such as doctor, engineer, accountant, lawyer, software developer, researcher, academic or any individual service provider.

The following are the taxes Companies usually have to pay in Sri Lanka – 
  1. income tax charged under the Inland Revenue Act No. 24 of 2017 at the rate of 30% of the taxable income.
  2. the Value Added Tax charged under Value Added Tax Act No. 14 of 2002 charged at 15% on the value of goods or services supplied or imported. 
  3. the Social Security Contribution Levy charged under the Social Security Contribution Levy Act, No. 25 of 2022 as charged at 2.5% of the liable turnover.