📈 SL Expands Tax Exemptions for Green Investment & Key Industries

The Government has issued a new Gazette, effective from 15 October 2025, significantly expanding duty and tax exemptions on capital goods for priority development projects via the bonded warehouse scheme. • Objective: Accelerate the transition towards renewable energy and sustainable industrial growth, aligning with the 2026 economic roadmap. • New Scope: The regulation amends the 2018 framework to specifically include Renewable Energy storage as an eligible investment sector. • Eligible Sectors: Registered companies engaged in constructing or expanding facilities in the following five key industries now qualify for the exemptions: Dairy manufacturing Pharmaceutical manufacturing Medical equipment production Solid waste management Renewable Energy generation or storage • Renewable Energy Threshold: Eligible projects must involve at least 1 megawatt (MW) of generation capacity or 1 megawatt-hour (MWh) of storage capacity. • Impact: The measure is expected to attract local and foreign investment into Sri Lanka’s clean energy sector, helping the country move closer to its ambitious target of generating 70% of electricity from renewable sources by 2030.