Financial services Aim to ensure a green Agriculture

economy by 2045
Debt Repayment Levy to Backward integrated
be introduced on cash Emission and safety standards will activities related to
transactions by financial be introduced together with the agriculture will be taxed at

Budget institutions at the rate of

0.02% for a period of 3
years effective from 01
revisions in the pre-shipment
certificates on vehicle imports.
14%.

LKR 3 Bn to be allocated

2018 at
The loan to value ratio for the as the state contribution
April 2018. The levy
electric busses and three wheelers for an Insurance Cover for
cannot be passed on to
will be revised to 90/10. This will be a minimum of LKR 40,000
customers.

a glance
extended for domestically per acre for 6 crops.
assembled electric three wheelers,
cars and busses, as well.

Tourism Facilitation for FDI’s

A tax of 1% will be
Automobile
Establishing a One Stop Shop for
imposed on the business registration through the
commission income Carbon Tax to be imposed. introduction of a single
derived from business identification system.
carried out in Sri Lanka by Excise Duty on motor vehicles
an Online Travel Agent. to be revised and imposed
based on the engine capacity. Removal of the restrictions which
A VAT refund scheme will limited the land ownership rights
be introduced for foreign Electric vehicles to receive of listed companies with foreign
passport holders at ports relief, whilst tax on super luxury ownership together with the
and airports with effect vehicles will be increased. foreigners’ ability to purchase
from 01 May 2018. condominiums below the 4th floor.

© 2017 KPMG, a Sri Lankan partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.
 Small and medium Contact Us
Telecommunication enterprises ”the back bone
of the economy” Shamila Jayasekara
A levy on cellular towers Partner – Head of Tax
LKR 10 Bn allocated to establish a KPMG in Sri Lanka
and on bulk sms
special Development Bank with an Tel: + 94 11 5426503
advertisements will be Liquor EXIM window to provide long-term E-Mail: sjayasekara@kpmg.com
imposed.
loans.
Import and sale of liquor Suresh Perera
to be liable to NBT with LKR 750 Mn has been allocated to
Principal – Tax & Regulatory
effect from 01 April 2018. provide relief for interest payments KPMG in Sri Lanka
under Enterprise Sri Lanka Credit Tel: + 94 11 5426502
Excise duty rates will be Scheme. E-Mail: sperera@kpmg.com
revised based on alcohol
strength. KPMG
No. 32A,
Sir Mohamed Macan
Markar Mawatha,
Colombo 3,
Sri Lanka
20,000 housing units to be Equity infusion to comply with Basel III
provided by 2020 requirements Tel: + 94 11 5426426
Fax: + 94 11 2445872
LKR 17.5 Bn to be allocated via the The government will infuse LKR 5 Bn as equity to BOC + 94 11 2446058
Urban Regeneration Project for low E-Mail:
in 2017 and a further LKR 5 Bn in 2018. Additional
income segment. These projects have kpmgsl@kpmg.com
infusion LKR 2.5 Bn as capital into the Pradeshiya Web: www.kpmg.com/lk
already commenced in Angoda, Sanwardana Bank in 2017.
Kolonnawa, Maligawatte and State banks are permissible to raise their own capital
Dematagoda. from the markets.
25,000 houses will be provided in the State will not relinquish the controlling ownership, but is
medium term towards the plantation willing to allow the divestitures, provided that the
sector. depositors and the employees are given the option of
becoming shareholders. kpmg.com/lk

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thorough examination of the particular situation.
© 2017 KPMG, a Sri Lankan partnership, and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.