

SRI LANKA – Getting the Deal Through: Ports & Terminals (2017 edition)
The shifting of governmental and state policy towards PPP-based projects, the emergence of the privately operated SAGT and CICT terminals at the port of Colombo, and the introduction of the Magampura Port at Hambanthota are recent developments which have revolutionised port operations in Sri Lanka, optimising its strategic location as a port hub in the
Read More
Incorporate a Company in Sri Lanka
ESTABLISHMENT OF AN ENTITY IN SRI LANKA Sri Lanka is ranked highly among the South Asian countries that offer ease in terms of establishing an entity. The country has a well documented and established procedure of setting up a business. Foreign ownership restrictions Limited Liability Company As far as foreign ownership constraints are concerned, there
Read More
Personal liability of directors for failure to meet their obligations under the provisions relating to solvency test
The Companies Act of April 2007 introduced the concept of a “Solvency Test” that should be satisfied by a company before and after a number of transactions including but not limited to distributions, purchase of its own shares and capital reductions. The solvency test imposes an obligation on the directors of a company to ensure
Read More
Small Scale Renewable Energy Power Plant
OVERVIEW OF THE PERMITS, LICENSES AND APPROVALS REQUIRED IN SETTING UP A SMALL SCALE POWER PLANT Once the energy source to be utilized by the (SSPPP) Small Scale Power Plant Project has been identified a prefeasibility study should be conducted to ascertain the economic viability of the project. The Study should be conducted by a
Read More
Takeovers and Mergers in Sri Lanka
In Sri Lanka, the administration of the Company Takeovers and Mergers Code is the function of the Sri Lankan Securities & Exchange Commission (SEC). The Code is a set of rules made by the Commission under the provisions of the Securities & Exchange Commission Act.The Code is applicable to all takeovers and mergers in which
Read More
Proposed changes to foreign ownership of property laws and the introduction of capital gains tax
In the recent budget, there are proposals to relax the laws restricting foreign ownership of immovable property as imposed by the Land Alienation Act. Additionally, the Government proposes to introduce capital gains tax (CGT) on the sale of immovable property in Sri Lanka at the rate of 10 % on the realized gain. FOREIGN OWNERSHIP
Read MoreLaw of Admiralty
Admiralty action in the jurisdiction of Sri Lanka is derived from the Admiralty Jurisdiction Act No. 40 of 1983 (“AJA”). Section 2(1) lists out the maritime claims upon which admiralty in rem proceedings can be instituted which include claims in relation to goods and services provided to a vessel, claims under charter party agreements, claims
Read More
Winding up of a limited liability company in Sri Lanka
Companies may be wound up in accordance with the provisions of the Companies Act and the Companies Winding up Rues. Winding up of a company may be either by court, voluntarily, or subject to the supervision of Court. Winding up by Court – A company may be wound up by Court, if the company has,
Read More