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New Bill to replace Strategic Development Act
View(s):The Strategic Development Act introduced by the former government will be replaced by a new investor-friendly Act that will ensure that the country does not suffer revenue loss when incentives are offered to local and foreign investors, a senior official said.
Development Strategies and International Trade Ministry Secretary Chandani Wijewardena told the Sunday Times the highlights of the proposed bill would be provisions to ensure that the Government did not suffer a revenue loss in offering incentives to investors and the introduction of a monitoring system. Development Strategies and International Trade Minister Malik Samarawickrema is due to seek Cabinet approval for the proposed Bill later this month.
Ms. Wijewardena said the Bill was aimed at rectifying the shortcomings in the Strategic Development Act. Under the Act, the state could not earn the anticipated revenue from certain investments which did not create enough jobs or bring in the required tax revenue.
Under the new bill a monitoring unit would be set up to assess the number of jobs created, the tax targets achieved and whether the investment was beneficial to the country.
In terms of the proposed Bill, state institutions are required to grant approval for an investment project within 45 days. In the event the project approval is delayed, the Minister or the Chairman of the Board of investment (BOI) should look into the delay.
All new investment projects will be brought under the purview of the proposed bill.