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Cabinet nods 40 year tax holiday to woo FDI

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Moratoria for tourism sector extended till Dec. 31, 2022:

With the aim of attracting more FDI, the government has decided to offer a special 40-year tax concession to investors for the Colombo Port City.

Cabinet Media Spokesman and Minister of Transport, Highways and Media Dr. Bandula Gunawardane said that to date, the highest single FDI was made to the Colombo Port City which is USD 1.4 billion and offering a longer tax holiday could attract similar investments.

“Several countries like Oman, Bangladesh and Kenya, too provide huge tax holidays to investors which are far better than what is offered by Sri Lanka. In Oman they have leased their port lands to several countries to set up their own investment zones and industries. “

Dr. Gunawardane also observed that several local industries, apparel and BPO companies were moving or setting up operations in African and other countries. “This is because Sri Lankan investors find more ‘attractive investment terms’ from these countries than Sri Lanka. This is why the Cabinet also decided to award a special 40-year tax concession to investors at the Colombo Port City and similar concessions would be offered to local investors too,” the Minister said.

Meanwhile, the Minister also disclosed that on a proposal made by the Minister of Tourism Harin Fernando the government has decided to extend the moratoria offered to the Sri Lanka travel sector stakeholders until December 31, 2022.

The private sector moratoria offered to the local leisure sector stakeholders had ended on May 31 and State sector banks moratoria were to end on June 30, 2022. “Cabinet has now decided to extend both these moratoria until December 31, 2022 as we feel that the tourism sector is not in a position for debt service right now due to drop in arrivals and current economic downturn.” (SS)

 

Wednesday, June 8, 2022 – 01:00











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