Sri Lanka offers tax breaks for R&D, royalties

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.

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Royalties on new patents will be made tax free for 7 years.

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

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