Sri Lanka to introduce capital gains tax & remove exchange control: PM

June 09, 2016 (LBO) – Sri Lanka’s government will remove exchange control regulations before the end of this year with improved inflows coming into the country, Prime Minister Ranil Wickremesinghe said. Speaking at the debate of the no-confidence motion against Finance Minister, the Premier said the proposal will be implemented with the 2017 budget proposals. “We are strong enough and confident to say that we can remove exchange control before the 2017 budget,” Wickremesinghe said. However, Wickremesinghe once again suggested that there will be a capital gains tax that will possibly be introduced with the budget.

“We are going to tax the capital gains; this will be the first time we are going to tax capitalists.

” Prime Minister further revealed that during the months of January to May this year, the government has signed foreign loan agreements worth 9 billion US dollars. He added that the government is also planning to issue another 3 billion US dollars worth bonds in the international market in the latter part of this year.