PROPOSED BOI INCENTIVES FOR THE EASTERN PROVINCE

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PROPOSED BOI INCENTIVES FOR THE EASTERN PROVINCE
A M C Kulasekera Deputy Director General Board of
Investment of Sri Lanka
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Objectives of the proposed new incentives

• To accelerate the development activities in the
  Eastern Province
• (Ampara, Baticaloa Trincomalee have been
  considered as most
• difficult areas for granting of incentives.)
• - Provision of social economic and physical
  infrastructure facilities
• - Increase employment opportunities
• - Reduce regional disparities
• To stimulate local and foreign investments

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1. Income Tax Concessions
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1. Income Tax Concessions Contd
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2. Revival of sick companies
2.1

• The above concessions will also be available for
  revival of a sick company
• located in the Eastern Province provided they set
  up a new company with the
• acquisition of assets of a sick company.
• Expansion of existing company
• Existing companies who set up an expansion unit
  will be eligible for a five (05)
• year tax holiday along with other concessions
  subject to satisfying investment
• employment criteria given below

2.2
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3. Other Concessions
a)

• Import of Capital Goods Raw-Materials
• Export Market Oriented Projects - Capital
  goods, construction materials (80
  exports) and raw-materials are permitted to
  beimported on duty free basis.
• Domestic Market Oriented - Capital goods
  construction Projects materials are
  permitted to be imported on duty free basis.

b)
Agriculture Sector Tractors, Agricultural
Implements Freezer Trucks are permitted to be
imported on duty free basis.
c)

• Land and Infrastructure Support
• State lands at concessionary rates to be made
  available
• 50 subsidy on cost of power connection upto a
  maximum of Rs. 2 Mn
• per project. This facility would be
  available for the first 50 projects once
• the factory buildings are completed.

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4. The above incentives would also be available

• To the projects set up in Northern Province
• Commenced commercial operation prior to 31st
  December 2008.

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THANK YOU