Sri Lanka to unveil clear investment tax structure
The Morning: Sri Lanka will introduce a very clear tax structure of investments which will be based on the investment value and the sector of investment, Industries and Entrepreneurship Development Deputy Minister Chathuranga Abeysinghe said.
Speaking to TVDerana on 28 July, he said that with the recent grant of tax holidays for four investments in Port City, there is an expectation these incentives will be given to other investments as well.
He said the government was able to point out to the International Monetary Fund (IMF) that incentives for investments are required to drive growth and was able to get the incentives to the port city investments.
According to the gazette issued recently, Ceylon Real Estate Holdings (Pvt) Ltd., Clothespin Management and Development (Pvt) Ltd., IFC Colombo (Pvt) Ltd., and ICC Port City (Pvt) Ltd., will be completely exempt from all taxes on income, dividends, and gains for the first 25 years.
Additionally, payments made during this period will not be subject to withholding tax. Following this, the companies will benefit from a 50% reduction on the prevailing corporate tax rate for a further 10 years.
“Going forward, there will be a very clear tax structure for investments in Sri Lanka, based on investment thresholds and investment areas, there will be incentives provided especially for foreign direct investments,” Abeysinghe said.
Moreover, he said that the Ministry of Industries is looking at getting particular concessions for local industries as well.
He added that it is a matter of us taking a particular portion of revenue, which is due to the government, where the Ministry of Industries has to counter the income generated and jobs created for the economy.
Further, he said that there will be a long-term governing act for investment promotions that will come within the year.
OSL take:
Sri Lanka is currently in the process of further expanding foreign businesses/investors to the country as it works towards becoming a hub in the South Asian region. Sri Lanka’s strategic positioning in the Indian Ocean, the many trade agreements as well as trade concessions enjoyed with other countries and the business conducive environment with attractive incentives on offer, all serve to attract foreign businesses/investors to explore the expanding business/investment opportunities in the country. The interest shown by many leading foreign businesses/investors to explore the expanding business/investment opportunities in Sri Lanka and express interest in doing business in Sri Lanka are further indicative of the increasing business potential in the country. All the positive indicators and developments in the country show that Sri Lanka is an emerging business destination in the region with businesses/investments in the country ensuring confirmed profits.
| Article Code : | VBS/AT/20250811/Z_8 |