19. Amendment of the Second Schedule to the principal enactment

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

The Second Schedule to the principal enactment is hereby amended in paragraph 1 of that Schedule as follows:-

(1)

by the insertion immediately after subparagraph (1) of that paragraph, of the following new subparagraph:–

“(1A) A person who has entered into an agreement with the Board of Investment of

Sri Lanka established under the Board of

Investment of Sri Lanka Law, No. 4 of 1978

and invests in Sri Lanka in the expansion of

Act, No. 4 of 2023

his existing undertaking, during any year of assessment shall be granted enhanced capital allowances computed in accordance with this paragraph, in addition to the capital allowances computed under the Fourth

Schedule.”;

(2)

in subparagraph (10) of that paragraph–

(a)

in the definition of the expresssion “Capital allowance expenditure” of that subparagraph, by the substitution for the words “Schedule;

and”, of the words “Schedule;”;

(b)

by the insertion immediately after the definition of the expression “Capital allowance expenditure” of that subparagraph, of the following new definitions:–

““existing undertaking” means any undertaking conducted by a person, prior to the first date of investment on depreciable assets;

“expansion” does not include–

(a)

the transfer, purchase or exchange of a depreciable asset of an existing undertaking of a person or an associate of a person;

(b)

the purchase of a depreciable asset to replace an existing depreciable asset of an undertaking of a person;

Act, No. 4 of 2023

“new undertaking” does not include–

(a)

the existing undertaking; or

(b)

an undertaking formed by splitting-up or re-construction of an existing undertaking of a person or an associate of a person;”.

Read on from s 20