The government has announced fresh tax holidays ranging from six to ten years for new investors in the tourism, manufacturing, agriculture, and educational technology sectors, according to a new Treasury circular.
The circular, issued by President Anura Kumara Dissanayake in his capacity as Minister of Finance, Planning and Economic Development, states that prospective investors are required to commit investments ranging from US$50 million to US$300 million. These projects must also generate a minimum of 100 to 250 local employment opportunities.
For new investments in tourism and other leisure-related sectors, the minimum investment threshold has been set at US$300 million, with tax holidays of up to ten years.
Investors granted approval under the scheme will be exempt from Corporate Income Tax (CIT) during the designated tax holiday period.
In addition, exemptions will be provided during the project implementation phase for the importation of capital goods and construction materials.
However, the circular clearly specifies that motor vehicles imported for travel or personal use will not qualify for tax exemptions and will remain subject to the applicable taxes.
