Sri Lanka port project: Chinese company gets 25-year tax concession

The Sunday Times
.............................................................................................................................................................................................

A Chinese company, a shareholder in the development of the South Container Terminal under the Colombo Port expansion project, will get a 25-year corporate income tax holiday along with several other tax concessions that the Government announced recently, an official said.

China Merchant Holdings (International) Co. Ltd, Aitken Spence Plc Consortium and the Sri Lanka Ports Authority are the shareholders in the project to expand the port on a build-operate and-transfer (BOT) basis. The total investment of the project is around US $ 500 million (Rs 54 billion) and it has been identified as a Strategic Development project coming under the Ministry of Economic Development.

The other tax benefits will include exemption from the payment of Value Added Tax for five years on the importation of project related goods and local purchases.

Further tax concessions limited to the project construction and implementation period will include the Port and Airport Development Levy, the Nation Building tax and some Custom duties. Similar concessions have also been given to an Indian-owned company, Cairn Lanka (Private) Limited, which will explore Oil and Gas in the Mannar Basin. Cairn Lanka (Private) Limited, is a wholly owned subsidiary of Cairn India.

© The Sunday Times