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Concessions, tax exemptions for 25 years: Govt. to reactivate law to woo investors
The Government is to reactivate an Act which gives concessions, including tax exemptions, for 25 years for what it describes as “Strategic Development projects of national interest”, the Cabinet has decided.
The proposal is aimed at attracting foreign investments which could generate jobs and provide export markets to local products. Attracting foreigners for tourism and setting up of assembling plants are also being considered.
The Strategic Development Projects Act (SDPA)was enacted in 2008 by the then Mahinda Rajapaksa government and amended in 2013, but the UNF government in 2016 put the Act on hold with assurances that a comprehensive investment law would be introduced. However, no such law was introduced.
However, the UNF government introduced a tax holiday effective until the investor gained profits from the project.
The last approval granted under the SDPA was for the two companies associated with the Hambantota Port Project.
Investment Promotion State Minister Keheliya Rambukwella told the Sunday Times that high concessions were being offered to attract foreign investors.
He said that along with the size of the investment, the government would also take into consideration the benefits to the country. “Some times the investment may be small, but it may help to generate more jobs,” he said.
Meanwhile, the Government has also initiated measures to simplify the procedures in the government service and streamlining the tax system and management services.