Investor Presentaiton

Incorporation of a company Deciding on the legal structure Private/Public Limited Company •The usual form for a fully owned subsidiary • Setting up is relatively simple - only one director and one shareholder is required •The standard Articles of Association ("AoA") can be used. However, for foreign investors, the AoA must clearly state; •The company's objects, and; •The exclusion that the company will not conduct business in industries restricted by the Foreign Exchange Act •If undertaking retail trade, USD 5 Mn capital must be remitted first Longer process to liquidate. Overseas Company •This is the general umbrella under which the following are created: • Project offices and Branch offices • Liaison and Representative offices Project offices (generally used for construction projects, etc) and Branch offices can conduct business in Sri Lanka. Must remit USD 200,000 as an initial investment which cannot be used for expenses within 30 days of set up •Liaison and Representative offices cannot conduct revenue generating activities and do not have a minimum capital requirement •Requires a local representative and a series of documentation. •Easier to liquidate Offshore Company •Functions as an offshore unit for companies incorporated overseas •Cannot conduct any business in Sri Lanka. BOI and SDP Approval •Investor can choose to obtain Board of Investment (BOI) approval for customs duty concessions, work permits etc (medium to large investments- minimum USD 250,000) •For very large and strategically important projects, approval and concessions may be granted Strategic Development Project status KPMG © 2020 KPMG, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Sri Lanka. Document Classification: KPMG Confidential 4

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