Inland Revenue Act 2000 · As enacted · Chapter III · Exemption from Income Tax
15. Miscellaneous exemptions from income tax
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
There shall be exempt from income tax—
the emoluments earned in any year of assessment in foreign currency by any individual resident in Sri
Lanka, in respect of services rendered by him in that year of assessment outside Sri Lanka in the course of any profession or vocation carried on or exercised by him, if such emoluments (less such amount expended by such individual outside Sri Lanka as is considered by the Commissioner General to be reasonable personal expenses) are remitted by him to Sri Lanka ;
the income accruing to a person receiving instruction at any university, college, school or other educational establishment from a scholarship, exhibition, bursary, or similar educational endowment ;
any capital sum received by way of death gratuity or as compensation for death or injuries ;
any sum received by an informer as a reward under any scheme for the payment of rewards by a
Government institution ;
wound and disability pensions granted to members or ex-members of the Forces of Her Majesty the
Queen of the United Kingdom ;
United States Government disability pensions ;
any prize received at a lottery conducted by the
National Savings Bank, by the holder of any bond issued by that Bank on which interest is not payable by that Bank ;
any royalty received by a non-resident person from a company with which an agreement has been entered into by the Board of Investment of Sri Lanka under section 17 of the Board of Investment of Sri
Lanka Law, No. 4 of 1978, in respect of any period during which the profits and income of that company are exempt from income tax under the terms of that agreement :
Provided that where such company opts, in lieu of the exemption from income tax under the terms of such agreement, to be charged with income tax, the exemption from income tax granted by this paragraph shall apply to any royalty received by any non resident person from such company in respect of the period during which the profits and income of such company would, but for such option, have been so exempt from income tax ;
the profits and income within the meaning of paragraph (a) of section 3 arising to any person from the sale of gold, gems or jewellery ;
the profits and income arising in Sri Lanka, to the consignor or consignee, from the export of—
any precious stones or metals not mined in Sri
Lanka ;
any petroleum, gas or petroleum product ; or
such other products as may be approved by the Minister for the purposes of this paragraph having regard to the foreign exchange benefits that are likely to accrue to the country from the export of such products, being stones, metals, petroleum, gas or products as the case may be, brought to Sri Lanka on a consignment basis, and re-exported, without subjecting such stones metals, petroleum, gas or products, as the case may be, to any process or manufacture ;
any prize received by a person as an award made by the President of the Republic of Sri Lanka ;
any prize received by a person as an award made by the Government in recognition of an invention created, or any research undertaken, by such person ;
the profits and income arising to any person from an undertaking approved by the Minister for the operation and maintenance of facilities for the storage of goods or commodities brought into Sri
Lanka for re-export ;
any sum received by a person from the President’s
Fund established by the President’s Fund Act, No. 7
of 1978 ;
any sum received by a person from the National
Defence Fund established by the National Defence
Fund Act, No. 9 of 1985 ;
such part of any sum as does not exceed three thousand rupees paid by the Sri Lanka Bureau of
Foreign Employment, established by the Sri Lanka
Bureau of Foreign Employment Act, No. 21 of 1985, to any person or partnership licensed by such Bureau, to carry on business of a foreign employment agency, in respect of any Sri Lankan for whom employment outside Sri Lanka has been provided or secured by such person or partnership ;
such part of any sum as does not exceed three thousand rupees received in any year of assessment by the Sri Lanka Bureau of Foreign Employment established by the Sri Lanka Bureau of Foreign
Employment Act, No. 21 of 1985, in respect of any
Sri Lankan for whom employment outside Sri Lanka has been provided or secured by such Bureau ;
such part of any sum or the aggregate of sums as does not exceed one hundred thousand rupees received by any individual as an award or awards in recognition of his excellence in the field of fine arts, literature or sports, being an award made with the prior written approval of the Minister in charge of the subject of fine arts, literature, or sports, as the case may be ;
any interest or discount accruing to the “Sudu Nelum
Movement” established by the Government and registered under section 114 of the Trust Ordinance being interest or discount on any sum of money deposited by the Sudu Nelum Movement with any commercial bank ;
the relevant part of the profits and income within the meaning of paragraph (a) of section 3, arising or accruing to any primary dealer.
For the purposes of this paragraph—
the expression “relevant part” in relation to the profits and income and to any primary dealer means the profits and income of such primary dealer from dealing, in the secondary market, in any treasury bill, treasury bond, registered stock or other security issued under the
Registered Stocks and Securities
Ordinance (chapter 420) and held by such primary dealer, after deducting from such profits and income such part of the interest or discount which would have accrued in respect of such bill, bond, stock or other security had such bill, bond, stock or other security been held by such primary dealer until such bill, bond, stock or other security matured, as is attributable to the period during which such bill, bond, stock or other security is held by such primary dealer ;
the expression “primary dealer” means any financier or bank appointed by the
Monetary Board of the Central Bank of
Sri Lanka under the Local Treasury Bills
Ordinance (Chapter 417) or the
Registered Stocks and Securities
Ordinance (Chapter 420) and functioning as a primary dealer in treasury bills, treasury bond, registered stock or other security ;
any profits and income within the meaning of paragraph (a) of section 3, derived by, or arising or accruing to any person from the sale of any bond, debenture or other debt instrument issued by a company and held by him being a bond, debenture or other debt instrument which at the time of such sale is quoted in any official list published by any
Stock Exchange licensed by the Securities and
Exchange Commission of Sri Lanka ;
any profits and income within the meaning of paragraph (a) of section 3, derived by, or accruing to, any person, from the sale of any share in any quoted public company ; and
the profits and income earned in any year of assessment in foreign currency by any National
Association of Sports registered under the Sports
Law, No. 25 of 1973, in respect of services rendered by such Association, or in the course of taking part in any sport within the meaning of the Sports Law, in that year of assessment outside Sri Lanka, if such profits and income (less such amount as the
Commissioner-General considers to be reasonable expenses incurred outside Sri Lanka) are remitted by such Association to Sri Lanka.
Chapter IV
Ascertainment of Profits or Income
Chapter V
Ascertainment of Total Statutory Income
Chapter VI
Chapter VII
Ascertainment of Taxable Income
Chapter VIII
Rates of Income Tax on Persons Other Than Companies
Chapter IX
Special Provisions Relating to the Taxation of Certain Profits and of Dividends Out of Such Profits
Chapter X