As enacted

Contents

9. Insertion of new sections 24A and 24B in the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

The following new sections are hereby inserted immediately after section 24 of the principal enactment and shall have effect as section 24A and section 24B of that enactment :—

24A. (1) The profits and income within the meaning of paragraph (a) of section 3, (other than any profits and income from the disposal of any capital asset) from the exhibition on or after April 1, 2007 of any cinematographic film in any new cinema or any upgraded cinema referred to in subsection (3), shall be exempt from income tax for a period of :—

(a)

ten years, where the cinema is a new cinema ; or

(b)

five years, where the cinema is an upgraded cinema.

(2)

The period of ten years or the period of five years, as the case may be, referred to in subsection (1) shall, in relation to any cinema, commence from the commencement of the year of assessment in which the exhibition of cinematographic films in such new cinema or upgraded cinema, as the case may be, commenced.

(3)

For the purposes of this section :—

(a)

“new cinema” means a cinema—

(i)

in which the exhibition of cinematographic films commences on or after April 1, 2007 ; and

“Exemption from income tax of the profits and income from any new or upgraded cinema.

(ii)

which is certified by the

National Film Corporation of Sri

Lanka established by the

National Film Corporation of Sri

Lanka Act, No. 47 of 1971 as being equipped with digital technology and Digital Theatre

Systems and Dolby Sound

Systems ; and

(b)

“upgraded cinema” means a cinema—

(i)

in which the exhibition of cinematographic films had commenced prior to April 1,

2007 ;

(ii)

which was not equipped with digital technology and Digital

Theatre Systems and Dolby

Sound Systems prior to April 1,

2007 ; and

(iii)

which is certified by the

National Film Corporation of Sri

Lanka, established by the

National Film Corporation of

Sri Lanka Act, No. 47 of 1971 as being equipped on or after April 1, 2007, with digital technology and Digital Theatre Systems and

Dolby Sound Systems.

24B. (1) The profits and income within the meaning of paragraph (a) of section 3, (other than any profits from the disposal of any capital asset) of any person from the operation of any reopened abandoned factory referred to in subsection (2), shall be exempt from income tax for the period ending on March 31,

2011.

Exemption from income tax of the profits and income from the operation of any re-opened abandoned factory.

(2)

For the purpose of subsection (1),

“reopened abandoned factory” means a factory which :—

(a)

was engaged in the production or manufacture of any commodity or article but which had not been so engaged for an unbroken period of not less than three years, preceding

November 16, 2006; and

(b)

commences to produce or manufacture such commodity or article or any other commodity or article in commercial quantities before

April 1, 2008.”.

Read on from s 10