IntroductionSetting up in Sri Lanka - How To Set Up?
Section 16
Approval under Section 16 of the BOI Act permits foreign investments entry to operate only under the 'Normal Laws' of the country, that is, for such enterprises, provisions of the Inland Revenue, Customs and Exchange Control Laws shall apply.
Section 17
Under Sec.17 projects are approved with fiscal concessions such as Exchange Control and Custom duty exemption. Further, considering the minimum requirement of investment, the BOI will recommend a corporate tax exemption period through Inland Revenue Department.
Strategic Development
In terms of the Strategic Development Projects Act No 14 of 2008 (as amended), exemptions not exceeding twenty five years may be granted for a Strategic Development Project (*SDP) either in full or part from one or more of the enactments such as The Inland Revenue Act No.10 of 2006,The Value Added Tax Act No. 14 of 2002,The Finance Act No. 11 of 2002,The Excise (Special Provision) Act No.13 of 1989,The Economic Service Charge Act No. 13 of 2006,Customs Ordinance (Chapter 235),The Nation Building Tax Act, No 9 of 2009 and The Port and Airport Development Levy Act, No.18 of 2011.
The approval process for a SDP entails publication of a gazette notice on identifying the project; obtaining cabinet approval for same, publication of an Order in the gazette specifying the exemptions granted and then placing it before parliament for approval by Resolution of parliament.
* SDP means a project which is in the national interest and which is likely to bring economic and social benefit to the country and which is also likely to change the landscape of the country, primarily through –
- the strategic importance attached to the proposed provision of goods and services, which will be of benefit to the public;
- the substantial inflow of foreign exchange to the country;
- the substantial employment which will be generated and the enhancement of the income earning opportunities; and
- the envisaged transformation in terms of technology.
