Foreign ownership taxes to become less than 10%

Foreigners still cannot have complete ownership of lands in Sri Lanka but will pay less than 10% tax on business ventures after the Government amends laws within the next two weeks.

Investment Promotion Minister Lakshman Yapa Abeywardena yesterday clarified the Government position by reiterating that outright sale of land would continue to be prohibited but acknowledged that the Government would roll back taxes to less than 10% for companies coming under the Board of Investment (BOI).

Foreign companies would still be able to lease land for extended periods of time. Moreover, companies that have already spent extensive time and investment in Sri Lanka would not be under this constraint when they expand their businesses in Sri Lanka, he emphasised.

“The Treasury circulation will be released within the next two weeks. We hope to bring taxes on land sales to foreigners to less than 10%,” he said.