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Big foreign university to be set up in Mirigama
View(s):By Chandani Kirinde
A 120-acre land at the Mirigama Export Processing Zone has been leased out to establish a branch campus of the University of Central Lancashire (UCLan).
The 99-year-lease agreement with the Board of Investment (BOI) was signed recently after approval was obtained from the Ministry of Higher Education.
The total investment of the project is to be around US$ 100 million (around Rs.12 billion). According to the provisions of the agreement, the project company will be required
to ensure that the management of its branch campus adheres to the Universities Act in conducting its activities and such project is in the national interest and is of economic and social benefit to the country.
The university’s Sri Lanka partner, UCLan Lanka (Private) Limited signed the project Agreement with the BOI. In terms of the agreement, the Ministry of Investment Promotion will grant a fifteen-year corporate income tax holiday after commercial operations begin and after this period, it will get a concessionary tax rate of 25 per cent for ten years.
The project company will also be exempted from the payment of withholding tax, on interest paid on foreign loans obtained for capital expenditure, on technical fees paid to consultants employed in the project, on management fees, royalty payments and marketing fees.
The tax on dividends distributed to shareholders out of profits shall be exempted from income tax during the first 15 years of tax exemption and one year thereafter.
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