16. Amendment of section 34 of the principal enactment

Official English translation. The Sinhala text prevails.

Section 34 of the principal enactment as last amended by Act, No.18 of 2013 is hereby further amended as follows:-

(1)

in subsection (2) of that section –

(a)

by the substitution for paragraph (s) of that subsection, of the following paragraph:-

“(s)

investment of not less than fifty million rupees in the acquisition of fixed assets made by any person on or after

April 1, 2011 but before April 1, 2014

in the expansion of any undertaking which would have been qualified for exemption under section 16C or section 17A had such undertaking commenced to carry on business on or after April 1,

2011:

Provided however, where such investment is made in any high tech plant, machinery or equipment which is acquired for energy efficiency purposes or for technology upgrading purposes or introducing any new technology or for power generation using renewable energy resources in the expansion of such undertaking on or after April 1, 2011, but prior to April 1,

2015 such investment shall comprise a qualifying payment.”;

(b)

by the substitution in paragraph (u) of that subsection, for the words “whichever is lower;”, of the words “whichever is lower;”;

(c)

by the substitution in paragraph (v) of that subsection, for the words “not resident in Sri

Lanka.”, of the words “not resident in Sri

Lanka;”; and

(d)

by the addition immediately after paragraph (v) of that subsection, of the following new paragraphs:-

“(w) any expenditure incurred not exceeding six hundred thousand rupees for any year of assessment commencing on or after April 1, 2014 on the repayment of the capital of a loan obtained from any bank licensed under the Banking Act, No. 30 of 1988 or any finance company licensed under the

Finance Business Act, No. 42 of 2011, of which the proceeds are utilized to construct a house or to purchase a house or a unit of a residential apartment complex, by an individual who is a professional and who furnishes a return under section 106, whether such individual obtained such loan alone or together with any other individual:

Provided that, if such loan is obtained together with another individual or obtained for a co-owned property, such deduction shall not exceed the amount of expenditure attributable to such individual who obtained such loan.

For the purpose of this paragraph,

“professional” shall have the same meaning as given for that expression in section 40C;

(x)

any expenditure incurred by any bank or any finance company licensed under the Finance Business Act, No.42 of 2011, by way of cost of acquisition or merger of any other bank or any other finance company, where such cost is ascertained by considering all the facts on case by case basis in accordance with the guidelines issued by the Central

Bank of Sri Lanka for that purpose, and such expenditure is not deductible under section 25.”;

(2)

in subsection (4) of that section –

(a)

by the substitution in sub-paragraph (i) of paragraph (a) of that subsection, for the words and figures “ (t), (u) and (v) of subsection (2)”, of the words and figures “(t), (u), (v) and (w)

of subsection (2)”; and

(b)

by the substitution in sub-paragraph (i) of paragraph (b) of that subsection, for the words and figures “(r), (s) and (t) of subsection (2)”, of the words and figures “(r), (s), (t) and (x) of subsection (2)”.

Read on from s 17