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Investor Presentaiton

Section 17 BOI Companies Strategic Development Projects (1/2) . A project is considered as a Strategic Development Project (SDP) on the ground that it is in the national interest and such project is likely to bring economic and social benefit to the country and is also likely to change the landscape of the country, primarily through- a) the strategic importance attached to the proposed provision of goods and services, which will be of benefit to the public; b) the substantial inflow of foreign exchange to the country; c) the substantial employment which will be generated and the enhancement of the income earning opportunities; and d) the envisaged transformation in terms of technology • Projects Act No. 14 of 2008 as amended by the Strategic Development Projects (Amendment) Act No. 12 of 2011. Strategic Development Projects Act covers full or partial exemptions (depending on the type and the level of investment) of the following taxes. a) Value Added Tax (VAT) b) Income Tax c) Economic Service Charge (ESC) d) Customs Duty e) Excise Duty f) Nation Building Tax (NBT) g) Ports and Airports Development Levy (PAL) h) Taxes under the Finance Acts Investment proposal for government lands and property are scrutinized by Stranded Cabinet Appointed Review Committee on the recommendation of the line Ministry. The Board of Investment Sri Lanka (BOI) acts as the facilitator of SDPs with the concurrence of the Ministry of Finance and Planning. The project proposal for the SDP should be submitted to the BOI directly by the investor. • BOI will carry out the necessary analysis of the project along with the line Ministry, with the concurrence of the Ministry of Finance and Planning. The Cabinet approval will be granted for the recognition of the project and for the approval of the Parliament Any investment capable of altering the economic landscape of Sri Lanka which would fall under SDPs are considered to obtain tax exemptions under the provisions of the Strategic Development KPMG © 2020 KPMG, a Sri Lankan partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Printed in Sri Lanka. Document Classification: KPMG Confidential 9
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