Sri Lanka’s BOI to apply provisions of 2006 to avoid confusions on investments

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Aug 04, 2015 (LBO) – Sri Lanka’s Board of Investment on Monday clarified their position with regard to the confusions aroused after the mini budget overruled the previous budget.
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2015 budget presented by former administration included proposals to be effective from this tax year which starts from 01 April 2015.
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Even though certain other tax proposals required the Inland Revenue Act to be amended, the interim government through their mini budget took precedence over this.
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“The BOI has no other choice but to apply the 2006 gazette notification which has BOI regulations,” BOI Chairman Upul Jayasuriya told a forum. “In the 2015 budget presented by the previous government, the required laws were not brought in. Previous proposals have already expired by the end of March this year.
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” Accordingly, the provisions contained in the 2006 extraordinary gazette dated 02.11.2006 should be read with the BOI act of 1978 to understand the provisions apply to this tax year.
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The BOI chief said the government will refrain from using the strategic development act for future investments.
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“Whatever that has been granted the strategic development status will continue,” Jayasuriya said. “But the government has decided they would not apply the strategic development act in future investments other than on very compelling reasons.
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” Jayasuriya charged the former administration for allegedly violating the section 157 of the constitution by acquiring 35 enterprises and assets through the underperforming act of 2011. However section 157 applies to international treaties and agreements passed with two thirds majority in the Parliament.
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Under this section, any agreement between Sri Lanka and any foreign State for the promotion and protection of the investments in Sri Lanka has the force of law in Sri Lanka.
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