Support for new investments

The Government yesterday announced a key tax incentive to boost investment in addition to support for new ventures in provinces including the Northern and East provinces.

Finance Minister Ravi Karunanayake in the 2017 Budget said that in pursuing high impact investments, the Government would not hesitate to partner progressive thinking and calculated risk-taking. 

Any company, both domestic and foreign, with an investment between $ 5 million and $ 100 million (excluding the value of land), that engages in a venture with a more than 40% value addition and can generate employment for 500 employees, will be provided with a grant of 5% of the investment at the end of the second year of operation. If this is maintained for five years, the Government will top up the investment by a further 5% on the original investment. “We will also grant a 100% capital allowance on such businesses as well,” he said.