- The Government has revealed its 2016 Budget where dramatic changes have been suggested to enable among others, direct overseas investments.
- When you are aware, there was an unexpected change in the federal government of Sri Lanka on January 8thwhereby the prior government using its narrow nationalist methodology was overthrown.
- In further confirmation there was a General Election in August of the 12 months whereby the United National Party obtained a majority of seats in Parliament but opted to create a National Federal with the other major get together in the opposition therefore arriving over a consensual government.
- This is the first budget of the new consensual federal.
- The government to be able to get FDI inflows in to the country has made certain proposals a few of which are highlighted below:-
- Government to permit full ownership of land on determined investments.
- Take away the 15% tax imposed on the leasing of land to foreigners.
- Repeal the present Exchange Control Take action and bring in an buyer friendly Foreign Exchange Management Bill.
- Income from dividends on purchases created by non-citizens and overseas companies in posted stocks through inward remittances to be exempted from TAX.
- To displace the current Mother board of Investment (BOI) by a new institution called the Agency for Development allowing the applications for international purchases to be completed to permit companies to commence business within 50 days and nights.
- Authorities lands and investment related taxes concessions to be provided to traders who will commit to certain specific areas of the united states considered to be less developed.
- A 50% duty reduction for an interval of five years to any new company establishing facilities in such areas with the very least investment of US$10 million.
- To abolish the Securities Investment Account (SIA) through with overseas investors were wanted to route their ventures hitherto. Instead traders will be permitted to generate money to Sri Lanka through any bank account existing in the formal banking system.
- To make sure security to any investment and inward remittance made by non-nationals the government is to obtain insurance with an international agency ensuring the security of all investments.
- To encourage further FDI’s, Home Visas for a three year period to be awarded for everyone remittance above US$250,000.
- Permanent Home Visa will be awarded for any investment brought in which is over US$5 million.
These proposals will necessarily have to be fleshed out by the intro of new Works that will happen in the approaching weeks.
For more details contact homefinder.lk