Offshore development centres and global capability centres in Sri Lanka

An offshore development centre or global capability centre is your own operation in Sri Lanka, staffed by your employees. IFS, Sysco, Synopsys, Zebra Technologies, Michelin and EY all run one. A foreign company can own 100% of a Sri Lankan technology company, register it in about two weeks, and pays 15% tax on exported services. In SLASSCOM's 2025 compensation survey, 52% of participating firms were global capability centres.

Last reviewed 10 October 2026.

2,200+: IFS employees in Colombo
100%: foreign ownership allowed for IT companies
52%: of firms in SLASSCOM's 2025 pay survey were capability centres

When your own centre makes sense

Usually once you are confident you will need 30 or more people for years. Below that, a dedicated team from a partner is faster and carries less risk. You can start with a partner and convert later.

The rules in brief

Private companies need one director and one shareholder, and directors need not live in Sri Lanka. IT companies can be fully foreign owned and can repatriate profits. Exported services are taxed at 15% and are zero rated for VAT. The setup guide covers the Board of Investment, Port City Colombo, visas and employment law, with sources.

Where centres are located

Orion City houses IFS, Virtusa, Synopsys and Michelin teams among 85+ companies. TRACE Expert City, the World Trade Center and Port City Colombo are the other main hubs.

Who does this in Sri Lanka

The roundupIFS, HCLTech, EY, Sysco and HSBC all run scaled operations in Sri Lanka.Read the story and sources

Sysco LABSThe engineering arm of the world's largest foodservice distributor.Read the story and sources

SynopsysChip design software R&D since 2015.Read the story and sources

Zebra TechnologiesA wholly owned software R&D subsidiary.Read the story and sources

EY Global Delivery ServicesOne of nine countries in EY's global delivery network.Read the story and sources

MichelinIT services for Asia and a shared service center.Read the story and sources

Superloop24x7 network operations for an Australian carrier.Read the story and sources

IGT1 LankaA new centre in Port City Colombo from the owners of IFS.Read the story and sources

Talk to us first

Tell us what you are building and how big the team needs to be. We will suggest the route and introduce the right people or partners.

Find talent Schedule a call Salary and cost guide Setup guide

Common questions

Which global companies have offshore development centres in Sri Lanka?

IFS, Sysco (Sysco LABS), Synopsys, Zebra Technologies, Michelin, EY, HCLTech, HSBC and Superloop all run their own centres or delivery operations in Sri Lanka.

Can a foreign company fully own a centre in Sri Lanka?

Yes. IT and software companies can be 100% foreign owned and can repatriate profits, according to the Board of Investment.

What tax does an offshore development centre pay in Sri Lanka?

Income from services exported and paid for in foreign currency is taxed at 15% from 1 April 2025. The standard corporate rate is 30%.

How long does it take to set up?

Company registration takes about 7 to 14 working days. Hiring, office space and banking take longer, which is why many companies start with a partner run team.