Sri Lanka gives tax breaks for renewable energy

President Mahinda Rajapaksa presenting a budget for 2012 said Sri Lanka wanted to reduce imported petroleum use and promote renewable energy.

"In this background, it is necessary to encourage the exploration of remaining hydro potentials, solar and other renewable energy sources," he said.

Import taxes on solar panels and other renewable energy equipment not made in Sri Lanka would be cut and income tax reduced to 12 percent.

Profits from crops grown for dendro (wood based) energy would be exempt from income tax for 10 years.