A logistics centre in Colombo Port with China’s CM Ports, Sri Lanka Ports Authority and Access Engineering will get a 15-year tax holiday, according to a gazette notice.
Thirty expatriates will be completely freed from income tax.
The corporate income tax exemption will start from the first year the project company makes a taxable profit or two years after commercial operations, whichever comes earlier.
Taxes on dividends will be exempt for the 16 years.
The project company will be exempt from withholding tax for the project period.
The logistics centre will be built on a 50-year build operate transfer project.
Imports for the project will be exempt from value added tax, port and airport levy and Export Development Cess for the 6 year project implementation period.
Customs import duty will be exempted for project imports, unless they are in a ‘negative list’.
Import of items in the negative list will be allowed, if they are not available in sufficient quantity domestically.