Cabinet approves 40-year tax incentives for Port City projects

• Minister Bandula Gunawardena says it is challenging to lure FDIs on a world recession
• Says local entrepreneurs moving to investment conducive countries such as Bangladesh, Ethiopia and Kenya

The Cabinet of Ministers at its meeting on Monday approved to offer 40-year special tax incentives to boost Foreign Direct Investments (FDIs).

“To be attractive for investors, it is important to offer appealing tax incentives to lure FDIs in a world recession,” Cabinet Spokesman and Minister Bandula Gunawardena told journalists at the post-Cabinet meeting media briefing yesterday.

He further justified the decision noting that countries like Oman had offered more competitive tax relief than Sri Lanka to port related investments to attract investors.

“Following the world economic recession, attracting investors is challenging,” he added.

The Cabinet spokesman also pointed out that many local entrepreneurs are moving to countries such as Bangladesh, Ethiopia and Kenya given the investment conducive  opportunities and environment.

“Exports, tourism, workers’ remittances and FDIs are the only avenues Sri Lanka can earn foreign currency income. Thus, providing tax concessions to boost those inflows are a must,” Gunawardena explained.