Sri Lanka’s promising progress with regard to free trade agreements, alongside finance reforms and ambitious growth strategies for manufacturing and ICT, look set to encourage increased foreign direct investment in 2019 – with 2018 having seen the highest levels on record. This should help offset the effects of political and economic volatility, as well at the increasing trade deficit that res
This chapter outlines the framework of tax obligations for corporations and individuals in Sri Lanka. The Companies Act, No. 7 of 2007 provides for the registration of three forms of business organisations in Sri Lanka: an incorporated company; a branch office of an overseas company; and an offshore company. Incorporated Company A company may be incorporated under the act as one of…
Viewpoint :Sujeewa Mudalige Tax simplification has always aroused interest. This concept entails the simplification of the structure of the whole tax system or of one tax in particular, as well as the streamlining of administrative procedures in relation to taxpayer assistance, tax determination, assessment, collection and auditing. Simplification in relation to income tax would require the…
This chapter examines Sri Lanka’s tax regime, explaining obligations outlined for businesses and individuals, deductions offered for trading of a company’s stocks, and other important information for investors. It also contains a tax viewpoint from Sujeewa Mudalige, CEO, PwC Sri Lanka.…
Sri Lanka benefits from its strategic geographic position along a critical Indian Ocean trade route, strong base of industrial and cash crop exports, and rapidly expanding non-agricultural economy. High levels of public expenditure and rapid industrial expansion supported recent robust macroeconomic growth, averaging more than 6% between 2008 and 2014, as the country embarked on a period of post-w
Structural and political issues have held back foreign investment in Sri Lanka in the past, but with new free trade agreements in the pipeline, and a government committed to attracting global investors to drive economic growth, the outlook is improving.
The much-awaited budget speech for 2017 delivered on many fronts, particularly revenue measures and tax administrative reforms, with an aim to improve overall business sentiment. The shift that was seen with most new revenue proposals was that they are now targeted at improving the direct tax contribution towards revenue. Unlike in 2016, some of the key revenue proposals have a greater chance…
Viewpoint: Sujeewa Mudalige Taxation continues to the principal instrument of mobilising revenue for financing public expenditure. In addition to serving this primary function, the Sri Lanka tax system has been harnessed over the years to serve the economic and social policy objectives of the government, both as a means of promoting capital formation and investment, thereby providing a conducive climate…
This chapter examines Sri Lanka’s tax regime, focusing on business-friendly benefits for 2017, incentives for tourism operators, digitisation of VAT mechanism and other key areas. It also features a viewpoint from Sujeewa Mudalige, Managing Partner, PwC.…
In addition to serving as a source of government revenue, taxation helps bridge the wealth gap. Taxation is also used as a disincentive on the consumption of demerit goods. Inflation rates and the balance of payments can be controlled and maintained with taxation, which can pave way for further economic growth and development. Simplifying The Tax System The tax system in Sri Lanka contains import…
