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Sri Lanka to revamp tax concessions for investors: minister

Mar 03, 2011 (LBO) - Sri Lanka's government is preparing new laws to speed up investment approvals with existing tax breaks by the investment promotion agency being abolished, a minister said.
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The war ended nearly two years ago enabling the government to end tax concessions that had caused heavy revenue losses.

"We have brought a new legislation called the strategic investment law," Sarath Amunugama, senior minister for international monetary co-operation said.

"I was the chairman of a committee to look into this and we have suggested drastic changes and one is to abolish tax concessions given under the Board of Investments (BOI).

"Then whatever tax concessions we have given (will be brought) under the Inland Revenue act."

Amunugama spoke at a development forum organized by the Sri Lankan arm of German public interest think-tank Friedrich-Ebert-Stiftung recently.

"But for special projects, strategic in terms of the need of the country, quantum of investment, quantum of employment and so on - they will come under the strategic investment law," Amunugama said.

Investments in a new port being built next to Colombo Port and a hotel project by Shangri-La (Hotels)

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