New Investment Framework: Beyond Tax Holidays 📈

The Sri Lankan Treasury has introduced a new scheme targeting tourism, manufacturing, agriculture, and educational technologies with tax holidays of 6–10 years. • Investment Thresholds: Minimum requirements range from US$ 50 Mn to US$ 300 Mn, with job creation targets between 100 and 250 positions. • Tourism Sector: Projects must reach a US$ 300 Mn minimum to qualify for the maximum 10-year tax relief. • Structural Challenges: Despite these incentives, experts warn that "red tape," opaque bureaucracy, and inconsistent policies remain significant barriers compared to regional competitors. • Proposed Reforms: The focus is shifting toward long-term enablers rather than fiscal concessions: • Establishing a "single-window" digital approval mechanism. • Strengthening legal safeguards and property rights. • Ensuring macroeconomic stability to offset exchange rate volatility. • Investing in infrastructure (logistics/ports) and human capital. _Note: Analysis suggests that while tax holidays signal intent, deep institutional reform is required to attract high-quality, sustainable global capital._ ---