As enacted

Contents

35. Amendment of the Third 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 Third Schedule to the principal enactment is hereby amended as follows: -

(1)

by the insertion immediately after paragraph (g) of that Schedule, of the following new paragraph: -

“(gg) a gain made by an entity fully owned by the

Government of Sri Lanka as a gain from the realisation of a capital asset or liability of the business or realisation of an investment asset, if such gain was made due to any decision by the Government of Sri Lanka as being essential for the economic development of Sri Lanka and subject to the prior written approval of the Minister;”;

(2)

in paragraph (hh) of that Schedule, by the substitution for the word and figures “April 1,

2021”, of the words and figures “April 1, 2021 but prior to October 1, 2022”;

(3)

in paragraph (oo) of that Schedule, by the substitution for the words and figures “on or after

January1, 2020”, of the words and figures “on or after January 1, 2020 but prior to October1, 2022”;

(4)

by the insertion immediately after paragraph (oo)

of that Schedule, of the following new paragraph: -

“(ooo)

on or after October 1, 2022, a dividend paid by a resident company-

(i)

which is engaged in any one or more of the following businesses in accordance with the provisions of Part IV of the Finance

Act, No. 12 of 2012 and which 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: -

(ia)

entrepot trade involving import, minor processing and re-export;

(ib)

offshore business where goods can be procured from one country or manufactured in one country and shipped to another country without bringing the same into Sri Lanka;

(ic)

providing front-end services to clients abroad;

(id)

headquarters operations of leading buyers for management of financial supply chain and billing operations;

(ie)

logistics services including bonded warehouse or multi-country consolidation in Sri Lanka;

(ii)

to a member to the extent that such dividend payment is attributable to, or derived from, another dividend received by that resident company or another resident company which is subject to Advance Income Tax under subsection (1A) of section 84A;”;

(5)

in paragraph (rr) of that Schedule, by the substitution for the words “dividends and gains”, of the words and figures “dividends and gains prior to October 1, 2022,”;

(6)

in paragraph (u) of that Schedule-

(a)

in subparagraph (ii) of that paragraph, by the substitution for the word and figures “January 1, 2020,”, of the words and figures “January 1,

2020, but prior to April 1, 2023,”;

(b)

in subparagraph (v) of that paragraph-

(i)

in that subparagraph, by the substitution for the words “any vocational”, of the words and figures “prior to April 1, 2023, any vocational”;

(ii)

in item (b) of that subparagraph, by the substitution for the words “five years”, of the words “two years”;

(iii)

in the proviso to that subparagraph, by the substitution for the words “next four years”, of the words “next year”; and

(c)

in subparagraph (vi) of that paragraph, by the substitution for the words “any business”, of the words and figures “prior to April 1, 2023, any business”; and

(7)

in paragraph (w) of that Schedule, by the substitution for the words and figures “on or after

April 1, 2021,”, of the words and figures “on or after April 1, 2021 but prior to April 1, 2023,”.

Read on from s 36