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Sri Lanka to give tax holidays to smaller enterprises

Nov 21, 2011 (LBO) - Sri Lanka will give tax holidays between 4 to 6 years to companies investing between 50 to 300 million rupees in export and import substitution businesses, President Mahinda Rajapaksa said. The necessary changes will be made into revenue and strategic investment laws, President Rajapaksa said.

The state will also finance new university course to help raise the standards and technology in leather, textiles and jewelry industries.

The move will allow small and medium enterprises to benefit from investment incentives, President Rajapaksa told parliament during a budget speech.
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Firms in agriculture and information technology will have a 25 million rupee threshold.

For larger enterprises investors between 300 to 2.5 billion rupees a 6 to 12 year tax holiday would be given, Taxes on machinery imports for expansion will be reduced he said.
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