Sri Lanka extends tax relief for Mattala Airport
The Morning: The government has decided to extend the concessionary period granted to the Mattala Rajapaksa International Airport in relation to the deviation tax.
As per the decision taken by the Cabinet of Ministers on 6 January, airlines operating scheduled flights to and from the Mattala Rajapaksa International Airport have been exempted from the deviation tax.
Under the tax concession, some airlines have already operated international flights to and from the airport with scheduled flights and airlines have reportedly expressed their interest in operating flights further.
Accordingly, it is expected to attract more scheduled international airlines to the Mattala airport and to continue existing airline operations.
Considering the development, the Cabinet of Ministers has approved the proposal presented by the Minister of Transport, Highways, Ports, and Civil Aviation to further extend the currently implemented exemption period for the deviation tax until 26 June 2027.
OSL take:
Sri Lanka is on an aggressive programme to attract more foreign direct investments (FDIs) to the country. Meanwhile, Sri Lanka is poised as an emerging business destination in the South Asian region supported by the country’s geographical positioning in the Indian Ocean, the strong trade ties enjoyed with many foreign countries and the many incentives offered to foreign businesses/investors exploring business/investment opportunities in Sri Lanka. It is in such a backdrop that the Sri Lankan government has decided to extend tax relief to MRIA, especially given the increasing number of foreign travellers arriving in the country and the overall expansion therefore in the airport and aviation as well as tourism industries. The expanding tourism, trade and other related industries present a host of business/investment opportunities in Sri Lanka. These opportunities guarantee many lucrative business ventures for foreign businesses/investors interested in doing business with Sri Lanka. With all these factors and the increasing interest in Sri Lanka by foreign businesses/investors serve as a further confidence booster for other foreign businesses/investors. Apart from exploring the expanding business/investment opportunities, foreign businesses/investors could also look at further expansion of operations through local collaborations.
| Article Code : | VBS/AT/20251013/Z_2 |