Strategic Development Projects (Amendment) Act 2025 · As enacted
4. Replacement of section 4 of the principal enactment
Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.
Official translationFrom Department of Government Printing, unchanged
Section 4 of the principal enactment is hereby repealed and the following sections are substituted therefor: -
4.
"Ex-post
The Board of Investment of Sri Lanka shall, from time to time as it deems appropriate, carry out ex-post monitoring in respect of any
Strategic Development Project and submit a report to the Ministry of Finance.
Project
The Ministry of Finance shall disclose the project outcomes and fiscal impacts of the project to the public by publication of the report submitted under subsection (1) on its official website.
Where any Strategic Development
Project fails to comply with the approved key performance indicators, the Board of
Investment of Sri Lanka shall issue a notice of non-compliance to the Strategic Development
Project Entity, which shall include—
the nature of the non-compliance;
and
a specified period of time for corrective action.
Where any Strategic Development
Project fails to take corrective action within the period of time specified by the Board of Investment of Sri Lanka, the Board of
Investment of Sri Lanka may, in consultation with the Ministry of Finance, and having regard to the nature and gravity of the non-compliance, take one or more of the following actions:-
restrict, suspend or revoke any or all exemptions, concessions or tax holiday granted under this
Act in respect of the Strategic
Development Project; or monitoring of Strategic
Development
impose administrative penalties to recover the loss incurred in that connection.
4A.
Notice to
The Board of Investment of Sri
Lanka shall, before taking action specified in paragraph (a) or (b) of subsection (4) of section 4, issue a notice in writing to the Strategic
Development Project Entity, specifying the grounds for the action.
A notice under subsection (1) shall require the Strategic Development Project
Entity to show cause within a period of one month from the date of receipt of the notice, as to why the sanctions specified in paragraph (a)
or (b) of subsection (4) of section 4 shall not be imposed.
The Strategic Development Project
Entity shall be afforded a reasonable opportunity to be heard, either in person or through an authorised representative, before a final decision is made.
Upon the consideration of any representations made by the
Strategic
Development
Project
Entity or its representative, the Board of Investment of
Sri Lanka may, for the reasons to be recorded in writing, restrict, suspend, or revoke any or all exemptions, concessions or tax holiday granted under this Act in respect of the Strategic
Development Project or impose administrative penalties to recover the loss incurred in that connection.
4B. Notwithstanding the provisions of section 2 –
every
Strategic
Development
Project Entity shall file tax returns show cause
Liability to pay the tax in terms of the provisions of Inland
Revenue Act, No. 24 of 2017;
every
Strategic
Development
Project Entity shall be liable to pay income tax with respect to withholding payments; and
every employment income of resident and non-resident employee from any Strategic
Development Project Entity shall be liable to pay income tax.
4C.
of the tax
The tax holiday period applicable to a Strategic Development Project shall commence on the date of commencement of commercial operations of such project, as certified by the Board of Investment of
Sri Lanka.
The tax holiday period granted to a
Strategic Development Project under this Act shall not be extended under any circumstances.
4D.
of tax
The Ministry of Finance shall, in respect of each financial year, publish on its official website an annual report on tax expenditures relating to all Strategic Development Projects under this Act.
4E.
Project Review
The Ministry of Finance may, in consultation with the Board of Investment of Sri Lanka, review the continued relevance and efficiency of the exemptions, concessions or tax holiday granted under this Act, upon the expiry of five years from the date of commencement of this section.
Commencement holiday period
Annual report expenditures for the Strategic
Development
4F. (1) The Minister may make regulations in respect of matters for which regulations are authorized or required to be made or to be prescribed by this Act.
Every regulation made by the Minister shall be published in the Gazette and shall come into operation on the date of such publication or on such later date as may be specified in such regulation.
Every regulation made by the Minister, shall within a period of three months after its publication in the Gazette, be brought before
Parliament for approval. Any regulation which is not so approved, shall be deemed to be rescinded as from the date of such disapproval, but without prejudice to anything duly done thereunder.
A Notification of the date of disapproval shall be published in the Gazette.