Foreign investors may get 5,000 acres on lease in SL: Ravi Karunanayake

Aforeign investor who wishes to lease a plot of land up to a maximum of 5,000 acres should have tax relief in respect of projects which are “labour intensive with job creation,” Finance Minister Ravi Karunanayake told The Hindu.

“Earlier, the lease tax was very stiff,” Mr. Karunanayake said. A foreign firm could do business without paying 100 per cent tax on leasing of land, although they would not be able to buy land in the country. The only stipulation for the investors getting a 99-year-long lease would be that they should not “indulge in buying land” and that their investments should be active.

For the purpose of foreign investments, the government had identified many thrust areas, each having a potential of two billion dollars.

Asked whether foreigners

Earlier, the lease tax was very stiff,” Mr. Karunanayake said. A foreign firm could do business without paying 100 per cent tax on leasing of land, although they would not be able to buy land in the country

would be allowed to invest in projects proposed under the public-private partnership (PPP) mode under the dairy sector and the construction of 100,000 houses in five years, Mr Karunanayake replied in the affirmative and said the term “private” would mean a local or a foreign investor while the term “public” would refer only to citizens of the country.