ECONOMYNEXT – Sri Lanka will stop giving tax holidays under Board of Investment Law and limit it to breaks available under the Inland Revenue Act, Prime Minister Ranil Wickremesinghe said.
"At the moment there are two agencies giving tax concessions, but in the future only the Finance Ministry which is collecting revenue will give tax concessions," Prime Minister Wickremesinghe told reporters.
Suspending BoI tax breaks is believed to be a 'prior action' under a deal with the International Monetary Fund which is expected to be announced shortly.
The IMF will also help Sri Lanka write a new income tax code and the implementation of the law may be a 'structural benchmark' under the deal.
Wickremesinghe also said an investor will be sought for loss-making state-run carrier SriLankan and its sister budget airline Mihin Lanka. (COLOMBO/April24/2016)