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Sri Lanka to exempt exports of IT, entrepôt trade, waste management from income tax

ECONOMYNEXT – Sri Lanka will exempt from income tax several activities including, agriculture, entrepôt trade, solid waste management, information technology and business process outsourcing, Finance Minister Ravi Karunanayake said.

A new inland revenue act (income tax law) is going to be presented to parliament shortly.

International logistics, multi-country consolidation will be included in the so-called hub-activities like entrepot trade that will be exempt from income tax.

Sri Lanka’s locational advantage as a transport hub had been blocked by a few rent-seeking oligopolists who have blocked foreign investment in shipping.

Several tea firms have also blocked the country from becoming an international hub for tea, despite advantages in logistics.

Profits from solid waste management, organic fertilizer, agriculture, poultry, dairy, export of gold, gem and jewellery will be exempt from income tax.

Export of services by individuals will also be exempt. (Colombo/May14/2017)

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