Sri Lanka offers tax breaks for R&D, royalties

(L-R) : Jeevith Senaratne, Director Operations - Star Garment Group; Shanaka Rabel, Group Chief Digital and Transformation Officer - Stretchline Holdings Ltd; Janaka Botejue, Chairman – Bernard Botejue Industries; Sanjeewa Kodikara, Chief Information Officer- Hirdaramani Group

Nov 21, 2013 (LBO) – To encourage research and development a tax deduction will be raised to 300 percent, and royalties will be made tax free, President Mahinda Rajapaksa said delivering the 2014 budget speech. Royalties on new patents will be made tax free for 7 years.

President Rajapaksa who is also finance minister said the apparel industry had the potential to make new innovations and be a globally leading industry.

The tax allowances will also help cover the cost of getting intellectual property rights he said.

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