Investor Presentaiton

Tax structure General tax rates - The general Income Tax rates applicable are as follows: Corporate taxes • • . Companies (both subsidiaries and branch/project offices) are taxed at the standard rate of 28% (proposed to be revised to 24% effective 1/1/2020). Certain sectors are eligible for exemptions/ concessionary rate of tax of 14%. Betting, gaming, liquor and tobacco sectors are taxed at 40%. Capital gains - Taxed at 10% Payment of dividends - Withholding tax at 14% (proposed to be removed for residents and exempt for non-residents from 1/1/2020) Profit remittance (by branch/project offices or other Permanent Establishments) - Taxed at 14% Payment of interest - Withholding tax at 5% (proposed to be removed for residents, and is subject to certain exemptions for non-residents from 1/1/2020) Payment of fees for land, sea or air transport, or telecommunication services to non-residents - Withholding tax at 2% Other specified payments to residents and non-residents - Withholding tax at 14% (proposed to be removed for residents from 1/1/2020) Taxes on individuals • Individuals are taxed at progressive rates of 4%-24% (with equal slabs of LKR 600,000) - Progressive tax rates have been proposed to be revised to 6% to 18% and the tax slabs to be revised to LKR 3Mn from 1/1/2020 Concessionary tax rates applicable to specified terminal benefits. Betting, gaming, liquor and tobacco sectors are taxed at 40%. Capital gains - Taxed at 10% Tax free allowance of LKR 500,000 is granted to residents and non-resident citizens, and an additional LKR 700,000 is granted to resident employees (proposed to be replaced with a tax free allowance of LKR 3Mn for residents and non-resident citizens from 1/1/2020) Payment of specified services fees - Withholding tax at 5% (proposed to be removed from 1/1/2020) 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 6 CO

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