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Sri Lanka: Eligibility criteria and tax concessions for strategic development projects

Sector-specific investment thresholds and mandatory local job creation requirements

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february 17, 2026

The Ministry of Finance on February 8, 2026, outlined the eligibility criteria and applicable tax concessions for strategic development projects (SDPs).

  • The regulation specifies sector-specific investment thresholds ranging from US$50 million to US$300 million, with mandatory local job creation requirements of 50, 100, or 250 jobs depending on the sector.
  • SDPs are entitled to corporate income tax holidays of five to 10 years.
  • During the project implementation period, SDPs qualify for exemptions from customs import duty, value added tax (VAT), ports and airport development levy, and cess for the import of capital goods and construction materials, excluding motor vehicles for travel or personal use. After the tax holiday expires, projects must comply with relevant tax laws.

Read a February 2026 report prepared by the KPMG member firm in Sri Lanka

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