Sri Lanka’s location, port capacity, and skilled workforce are powering a logistics upswing. Learn the market drivers, the effect of SVAT abolition from 1 Oct, practical ease-of-doing-business steps, and how NYX handles company incorporation, company secretarial, bookkeeping, QuickBooks, TIN Registration Sri Lanka, and Individual Income Tax Sri Lanka for your team.
1) Colombo’s rise as South Asia’s connector
The Port of Colombo sits on the main East–West shipping lane and now captures a rising share of regional transshipment. Capacity additions and terminal automation have improved turnaround times, giving shipping lines, freight forwarders, 3PLs, and e-commerce operators a predictable hub for India, the Middle East, and East Africa. For logistics firms, that means shorter feeder legs, fewer delays, and better schedule reliability.
2) Location that reduces time and cost
Sri Lanka is minutes from India’s southern ports by sea. This creates a natural hub-and-spoke model for consolidation, cross-docking, and regional distribution. A Colombo-based operation can serve Indian metros, the Gulf, and East Africa from a single inventory pool, which lowers safety stock and improves cash cycles.
3) Infrastructure that supports scale
Deep-water berths, modern container terminals, bonded warehouses, and expanding logistics parks backstop growth. Road links from port to airport and to industrial zones keep dwell times low. For 3PLs and fulfillment operators, this combination supports high-throughput inbound processing, value-added services, and same-week regional dispatch.
4) A workforce built for logistics
Freight forwarding, customs brokerage, warehouse supervision, and transport planning are well established professions in Sri Lanka. English proficiency is strong in shipping and finance roles. Wage levels remain competitive against regional peers, which lets operators scale teams for documentation, customer service, and control tower functions without quality loss.
5) Policy direction that favors trade and investment
National roadmaps continue to prioritize port expansion, industrial parks, and export-led growth. Investor facilitation bodies streamline approvals, while sector-specific guidelines bring predictability to licensing for shipping agencies, NVOCCs, 3PLs, and bonded warehouses.
6) SVAT abolished from 1 October: what changes for logistics operators
With the removal of the Simplified VAT (SVAT) from 1 October, exporters and qualifying logistics companies move to the standard VAT model.
What this means in practice
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Charge VAT on taxable local supplies where applicable and claim input VAT on eligible purchases.
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Cash flow planning becomes more important since input credits and refunds follow standard timelines.
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Supplier documentation must be clean. Tax invoices, GRNs, and import documents need strict reconciliation to protect input claims.
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Contracts and pricing may need updates to reflect VAT treatment for storage, handling, and value-added services.
Immediate actions
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Review customer and supplier lists to confirm VAT registration status and correct tax codes in your accounting system.
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Update the chart of accounts and item tax mappings in QuickBooks or your chosen ERP.
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Train billing and warehouse teams on tax-sensitive activities such as bonded versus non-bonded moves, local value-added work, and re-exports.
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Revisit cash flow forecasts for the first two quarters post-transition to account for refund timing.
NYX can help you reconfigure tax codes, invoice formats, and reconciliation workflows so that your VAT returns remain accurate after the SVAT phase-out.
7) Ease of doing business: what setup looks like
Setting up a logistics company in Sri Lanka is straightforward once you know the sequence. Here is the path NYX typically guides clients through.
Entity selection and incorporation
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Choose a private limited company for most logistics and 3PL operations.
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Reserve a unique company name.
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Draft articles and appoint directors and a company secretary.
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File incorporation documents and obtain the certificate of incorporation.
Post-incorporation registrations
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TIN Registration Sri Lanka for the company.
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VAT registration if thresholds or activity require it.
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EPF and ETF registrations for payroll.
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Sector licenses where relevant, for example freight forwarding or bonded warehousing approvals.
Banking and finance stack
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Open corporate bank accounts.
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Implement bookkeeping with a localized chart of accounts.
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Set up QuickBooks with item codes for freight, handling, storage, customs brokerage, and last-mile services.
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Build monthly close routines and management reports for leadership, lenders, and principals.
People and mobility
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Work visas if you deploy foreign managers.
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Individual Income Tax Sri Lanka onboarding for resident and non-resident directors, including monthly PAYE (a.k.a. APIT) compliance.
8) Taxes and compliance to plan in year one
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Corporate taxes
Plan your rate based on activity classification and watch for incentives tied to export and logistics services. -
VAT after 1 Oct
Operate fully under standard VAT. Maintain precise evidence for input claims and exports. NYX can set up your VAT return process, map customs documents to invoices, and monitor refunds. -
Payroll and social security
Enroll staff in EPF and ETF, align payroll calendars, and automate filings. Fringe benefits for drivers, warehouse teams, and control tower staff should be mapped correctly for payroll tax. -
Company secretarial
Maintain registers, board minutes, and annual returns. Changes to directors, shareholding, or business addresses must be filed on time to avoid penalties. -
Audit and accounts
Adopt a monthly close rhythm. Reconcile port invoices, shipping line charges, trucking costs, and warehouse movements. Issue annual financial statements on schedule.
9) People moves for executives and expatriates
High quality leadership matters in logistics. If you appoint foreign directors or bring in regional managers:
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Complete TIN Registration Sri Lanka for each individual.
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Apply the correct residency status and reliefs under Individual Income Tax Sri Lanka.
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Set up compliant compensation structures that balance salary, allowances, and benefits while keeping PAYE accurate.
NYX handles these steps so your leaders stay focused on operations and customer wins.
10) Why logistics firms choose NYX
One partner from intent to go-live
We incorporate your company, act as company secretary, set up your books, and configure QuickBooks for freight, storage, and value-added services. We also manage TIN Registration Sri Lanka, VAT onboarding after the SVAT change, EPF and ETF setup, and payroll.
Built for logistics workflows
We understand the accounting behind BL charges, detention and demurrage, bonded moves, value-added services, and cross-dock operations. Your management pack will show lane profitability, customer margins, and warehouse utilization, not just a trial balance.
Compliance you can trust
From annual returns to monthly VAT, PAYE, and statutory filings, our calendars and checklists keep you on time. Leadership teams get clear dashboards and audit-ready records.
Frequently asked questions
How long does incorporation take?
With complete documents, a standard private limited company can be incorporated within 2 weeks (approx.). NYX prepares the filings and coordinates approvals so you can move to licensing and hiring without delay.
Can NYX help with VAT after SVAT abolition?
Yes. We adjust your tax codes, invoice templates, and reconciliation process. We also train your billing and operations teams and manage filings.
Which software stack do you support?
We implement QuickBooks with a logistics-ready chart of accounts, item codes, and VAT mappings. We can also integrate bank feeds and simple dashboards for gross margin by customer and service line.
Ready to set up your logistics company in Sri Lanka and take advantage of the country’s growth story?
NYX will handle incorporation, company secretarial, bookkeeping, QuickBooks implementation, TIN Registration Sri Lanka, VAT onboarding after 1 Oct, payroll, and guidance on Individual Income Tax Sri Lanka for your leadership team.
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