1. Recent Policy Reforms Adopted to Encourage investments
March 2019

2. Content Legal Reforms Enhancement of Market Access
Reforms Introduced for Speedy Approval Process
Introduction of Online Systems
Reforms for Investment Incentive Scheme under Budget Proposals 2019
22nd Session of Sri Lanka-EU Joint Commission salient points

3. Legal Reforms
Implementation of Inland Revenue Act No.24 of 2017
Implementation of Foreign Exchange Act No.12 of 2017
Amendments to Land Alienation Act
Enhancement of Market Access
Reforms introduced for speedy approval process
Introduction of online systems
Single Window Investment Facilitation Task Force (SWIFT)
Import Export Facilitation
FDI online Registration

4. Reforms for investment incentive scheme under Budget Proposals 2019
Investment Incentives for Existing Businesses
Tax concessions by way of accelerated depreciation will be granted instead of regular depreciation for the new investments made by existing businesses
Incentives for Information Technology
The requirement of minimum 50 employees in order to qualify for the additional deduction equal to 35% of the salary cost when calculating the income from the business of IT is removed.
Introduction of Special Investment incentives to accelerate high value domestic and foreign investments
Large scale (over US$ 100 Mn) & mid size investments (Over US$ 50 Mn)
Enhanced Capital Allowance of 100 % to 150%
Exemption on applicable upfront taxes (NBT, PAL, Cess)
Non applicability of Negative list
Dividend tax exemption for non- residents (for over US$ 1000 Mn)
WHT exemption for employee income for expatriates (for over US$ 1000 Mn)

5. 22nd Session of Sri Lanka-EU Joint Commission salient points
Proposals from BOI
To provide the service of a promotion specialist for BOI to promote Sri Lanka under the EU-Sri Lanka Trade- Related Assistance Project.
Proposal from EDB
Technical Assistance for Developing 60 Sri Lankan SMEs to the European Market
Market Entry Strategy and create business linkages in the Central and Eastern Europe
Proposal for Promoting Sri Lanka Wellness Tourism Sector through Integrated Supply & Market Access Programme
Technical Assistance for Establishment of an Upgraded Food Safety Law and Control Mechanism (National Food Safety and Standard Authority) to Ensure Food Safety in Sri Lanka.