./.WORLD TRADE
ORGANIZATIONG/SCM/Q3/LKA/9
26 July 2002
(02-4171)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Responses by SRI LANKA to Follow-Up Questions Posed by
the UNITED STATES1Regarding the Notification of SRI LANKA2
The following communication, dated 25 July 2002, has been received from the Permanent
Mission of Sri Lanka.
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Could Sri Lanka please provide the relevant sections of the implementing legislation,
and any relevant amendments, for the programmes for the above programmes?
Programme Relevant Sections of the Implementing Legislation/
Instruction Series
1. Income Tax Concessions
(a) Tax Holidays
(b) Concessionary Tax Rates- The current exemptions are based on Sections 44, 45, 46
and 47 of  the Inland Revenue Act No. 38 of  2000. The
original ordinance that governs the exemptions is Inland
Revenue Act No.28 of 1979.
- The current exemptions are based on Sections 1 and 2 of
the Board of Investment of Sri Lanka Law No. 1 of 1998.
The original ordinance that governs the exemptions is the
Board of Investment of Sri Lanka Law No. 4 of 1978.
2. Tax Holidays on Profits
generated- The current exemptions are based on Sections 17 (1) and
20 (1) of the Inland Revenue Act No. 38 of  2000. The
original ordinance that governs the exemptions is Inland
Revenue Act No.28 of 1979.
- The current exemptions are based on Sections 1 and 2 of
the Board of Investment of Sri Lanka Law No. 1 of 1998.
The original ordinance that governs the exemptions is the
Board of Investment of Sri Lanka Law No. 4 of 1978.
                                                     
1 G/SCM/Q3/LKA/8
2 G/SCM/N/74/LKAG/SCM/Q3/LKA/9
Page 2
3. Concessionary Tax on
Dividends- The current exemptions are based on Section 48 of the
Inland Revenue Act No. 38 of  2000. The original
ordinance that governs the exemptions is Inland Revenue
Act No.28 of 1979.
4. Indirect Tax Exemptions -
Internal Tax Exemptions
(a) Goods & Services Tax
(GST)Section 7 (1) of Goods and Services Tax Act No.34 of 1996
(b) National Security Levy All sections in National Security Levy Act No. 52 of 1991 and
its amendments up to 01. 09 2001.
5. Export Development
Investment Support SchemeThe original ordinance that governs the programmes those
come under this Scheme is Part III of Sri Lanka Export
Development Act No.40 of 1979.
Also relevant are Instructions of the Ministry of Finance dated
5th August 1997 issued for this purpose.
6. Import Duty Exemption - Sections 10  and 22 A of the Customs Ordinance
- Part III of Sri Lanka Export Development Act No.40 of
1979
- The current exemptions are based on Sections 1 and 2 of
the Board of Investment of Sri Lanka Law No. 1 of 1998.
The original ordinance that governs the exemptions is the
Board of Investment of Sri Lanka Law No. 4 of 1978.
7. Exemption from Exchange
Control- Exchange Control Act of Sri Lanka
The current exemptions are based on Sections 1 and 2 of
the Board of Investment of Sri Lanka Law No. 1 of 1998.
The original ordinance that governs the exemptions is the
Board of Investment of Sri Lanka Law No. 4 of 1978.
Copies of the requested legislation are being prepared and will be submitted shortly for
circulation.
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