Sri Lanka grants 40-year tax relief for Chinese Port City investments  | Sinhala News

Sri lanka News – Sri Lanka has decided to give special 40-year tax relief for Chinese-built Port City to attract potential investors after the island nation’s largest foreign direct investment failed to attract investments after opened for nearly one year, a cabinet spokesperson said.

“We have taken this decision because other countries have offered more competitive tax relief than us in order to attract investors,” Cabinet spokesperson Bandula Gunawardana told a weekly cabinet briefing on Tuesday.

“With this economic recession, attracting investors is a challenge while local investors in the country are moving to countries such as Bangladesh, Ethiopia and Kenya due to favourable investment opportunities.”

The Port City officials have told Economy Next that they had planned to sell 100 hectares of reclaimed land with an investment target of 5 billion dollars.

A total of 269 hectares of land was reclaimed by China Harbour Engineering Company (CHEC) in the Port City project which raised concerns over 20 hectare outright grant to the Chinese firm and no fly zone.

However, later, the last government suspended the project and revised the cause to remove both land ownership and no fly zone in the agreement amid continuous protests by Sri Lanka’s neighbour India over security concerns. (Colombo/June07/2022)

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