As enacted

Contents

9. Amendment of section 17A of the principal enactment

Official English translation. The Sinhala text prevails.

Section 17A of the principal enactment, is hereby amended as follows :-

(1)

in subsection (1) of that section –

(a)

by the substitution for the words “shall be exempted from income tax for a period of five years reckoned from”, of the words “shall be exempt from income tax for the period specified in Column II of the Schedule hereto as corresponding to the investment specified in Column I of that Schedule, reckoned from”; and

(b)

by the repeal of the proviso to that subsection and the substitution therefor, of the following schedule:-

“SCHEDULE

(2)

by the substitution for the subsection (2) of that section, of the following new subsection :-

“(2) For the purposes of subsection (1), “new undertaking” means any undertaking—

(a)

which is engaged in any of the activities specified below:-

(i)

manufacture of boats, pharmaceuticals, tyres and tubes, motor spare parts, furniture, ceramics, glass ware or other mineral based products, rubber based products, cosmetic products, edible products manufactured out of locally cultivated agricultural products, construction materials or electrical or electronic goods;

(ii)

manufacture, production or processing of non-traditional goods for export, including deemed exports which shall constitute not less than ninety per centum of the total production and in the case of apparels, seventy five per centum of the total production ;

Column I

(Investment in Rupees Million)

Column II

(Exemption period)

More than 300 and not more than 500

More than 500 and not more than 700

More than 700 and not more than 1,000

More than 1,000 and not more than 1,500

More than 1,500 and not more than 2,500

More than 2,500 6 years 7 years 8 years 9 years 10 years 12 years”;

(iii)

cultivation of food crops or industrial crops;

(iv)

horticulture;

(v)

forestry;

(vi)

animal husbandry in relation to dairy, poultry, swine, goat etc;

(vii)

provision of services to a person or partnership outside Sri Lanka, for payment where the total amount of such payment shall not be less than seventy per centum in convertible foreign currency;

(viii)

tourism or tourism related projects;

(ix)

hotels, guest houses or similar services;

(x)

infrastructure projects including construction of commercial buildings;

(xi)

development of any warehousing or storage facility;

(xii)

power generation using renewable resources;

(xiii)

establishment of industrial estates, special economic zones or knowledge cities;

(xiv)

urban housing or town centre development;

(xv)

provision of any sanitation facility or waste management systems;

(xvi)

development of water services;

(xvii)

development of internal water ways, or related transport (goods or passengers);

(xviii)

construction of hospitals and provision of health care services;

(xix)

repair of aircrafts or maritime vessels or ship breaking;

(xx)

sporting services (e.g. motor racing or golf course);

(xxi)

information technology;

(xxii)

software development;

(xxiii)

business or knowledge process outsourcing;

(xxiv)

any project in light or heavy engineering industry;

(xxv)

artificial insemination for cattle (dairy development);

(xxvi)

provision of educational services;or

(xxvii)

any other activity, as may be prescribed by the

Minister taking into consideration the development of national economy ; and

(b)

which commences commercial operations on or after April 1, 2011;

(3)

in the marginal note to that section by the substitution for the words “ engaged in any prescribed activities.”, of the words “engaged in any specified activities.”.

Read on from s 10