19. Insertion of new sections 56A, 56B, 56C, and 56D in the principal enactment

Official English translation. The Sinhala text prevails.

The following new sections are inserted immediately after section 56 of the principal enactment and shall have effect as sections 56A, 56B, 56C and 56D respectively, of that enactment:-

56A. Such part of the profits and income of an export oriented company which has entered into an agreement with the Board of Investment of Sri Lanka under section 17 of the Board of

Investment of Sri Lanka Law, No. 4 of 1978, for any year of assessment commencing on or after April 1, 2013, from the sale of goods manufactured in Sri Lanka, up to the quantity approved by the Board of Investment as import replacement, to-

(a)

any company which has entered into an agreement with the Board of

Investment of Sri Lanka under section

17 of the Board of Investment of Sri

Lanka Law, No. 4 of 1978, enjoying tax holiday under section 16C, 16D or 17A of this Act or under the Strategic

Development Projects Act, No.14 of 2008 and which is permitted to import project related goods or raw materials on duty free basis under the provisions of such agreement, during the project implementation period; or

(b)

any person eligible to import specific goods on duty free basis under any

Government Authority, shall notwithstanding anything to the contrary in any other provisions of this Act, be deemed to be profits and income from exports and be chargeable with income tax at the appropriate rate specified in the Fifth

Schedule to this Act.

56B.

ships

Such part of the profits and income of any person for any year of assessment commencing on or after April 1, 2013 from the supply of any goods manufactured in Sri Lanka or the provision of services, to foreign ships for payments in foreign currency, shall notwithstanding anything to the contrary in any other provisions of this Act, be deemed to be profits and income from exports and be chargeable with income tax at the appropriate rate specified in the Fifth Schedule to this Act.

56C. Such part of the profits and income of any person for any year of assessment commencing on or after April 1, 2013 from the sale of any product manufactured in Sri Lanka for payment in foreign currency through foreign exchange earning account authorized by the Central Bank of Sri Lanka, shall notwithstanding anything to the contrary in any other provisions of this Act, be deemed to

Rate of income tax on the profits and income from the supply of goods or services to foreign

Rate of income tax on the profits and income from the sale of products manufactured in Sri Lanka for payment in foreign currency.

be profits and income from exports and be chargeable with income tax at the appropriate rate specified in the Fifth Schedule to this Act.

56D. For any year of assessment commencing on or after April 1, 2013 such part of the profits and income from the sale in the local market, of locally manufactured gaments, bags made out of fabric, linen, curtains or any othe goods, of any export oriented company which exports not less than sixty per centum of its products shall be chargeble with income tax at the rate of twelve per centum:

Provided however, where the local value addition of such garments, bags, linen, curtains or other goods, as the case may be, is greater than sixty five per centum with Sri Lankan brand name, such part of the profits and income of such export oriented company from the sale in the local market, of such garments, bags, linen, curtains, or other goods shall be chargeable with income tax at the rate of ten per centum.”.

Read on from s 20