Sri Lanka: Amended bonded warehouse facility regulations
“Renewable energy storage facilities” qualify as an eligible sector entitled to duty and tax exemptions
The Ministry of Finance on October 14, 2025, published a notification amending regulations concerning capital goods importation and local purchase under the bonded warehouse scheme. The amendment is effective October 15, 2025.
The key change introduces “renewable energy storage facilities” (with a minimum capacity of 1 MWh) as an eligible sector under the bonded warehouse facility. This facility provides exemptions from selected duties and taxes on approved capital goods during the construction period. Eligible enterprises registered under the Companies Act No. 07 of 2007 can import or locally purchase approved capital goods for constructing new facilities or expanding existing ones in specified industries.
Approved capital goods include plants, machinery, equipment, spare parts, sector-specific construction materials (excluding cement, sand, timber, and paints), and are subject to minimum investment criteria depending on the industry.
Read an October 2025 report prepared by the KPMG member firm in Sri Lanka