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"We can't decouple the tax incentives from positively inflowing FDI flows nor can we rely on them exclusively," Wickramasuriya said delivering the annual oration on taxation to the Institute of Chartered Accountants of Sri Lanka on Thursday.
"We must instead develop comparative advantages in separate sectors. Tax incentives must be combined with other efficiencies in the overall packages," he says.
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He added however that investment seeking countries must try to harmonize their tax regimes with the region rather than start a "race to the bottom" with tax incentives.
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"Tax incentives do have an effect on the local decisions multinational companies especially in the regional markets,