Tax relief for those investing in North and East

by Mohammed NAALIR

Moves are in place to establish two Independent Trade Zones (ITZ) in Trincomalee and Kilinochchi Districts, Mass Media, Telecommunication and Investment Promotion Minister Anura Priyadarshana Yapa said.

He said the Government will grant tax relief for 15 years to those who invest in the North and East.

After the ITZs are opened and the recruitment process launched, priority will be given to the residents of the Northern and Eastern Provinces.

The Minister stated that foreign investors are keen to make a major portion of their investments in the North and East.

He said Sri Lanka is considered as the best country in the Asian region to make investments.

Sri Lankan expatriates in foreign countries are also willing to invest in Sri Lanka due to the prevailing peaceful atmosphere.

Some investors have already come forward to open cement, fertiliser and steel factories in the North.

The Government will provide more tax relief to those who invest in the North and East while providing fair tax relief to all those who invest outside the Western Province.

The Minister stated that even though the Board of Investment (BOI) was formed in 1978, it could record only 2,700 million dollars in investments until 2005.

Within a short period of three years from 2005, the BOI could record 2800 million dollars in investments.

Relief granted to foreign investors is the cause for this huge investment, Minister Yapa added.