May 27, 2006 (LBO) – Investors off-shoring business to Sri Lanka will get special tax breaks from the Board of Investment, under a revamped incentive list out in a few weeks.
Sri Lanka is trying to pry away some of the business for Business Process Outsourcing(BPO) and other Information Technology enabled services away from neighbouring India.
The revised incentive list that is to be published in a few weeks includes expanded tax breaks for BPOs setting up shop here from three to five years at present, to three to 12 years.
Tax holidays will be expanded depending on the number of people. Centres with between 100 to 2000 people will have tax holidays ranging from three to 12 years, A M C Kulasekera, BOIs Deputy Director General of Investments, told LBO in an interview on Friday.
Investment criterion is also relaxed to a minimum level of 150,000 dollars. We have put a nominal investment criterion so anyone can commence business.
Existing incentives like duty free imports of capital goods and tax holidays for setting up shop or training centres outside of Colombo will be included in the new list.
Also being encouraged is setting up of