WORLD TRADE
ORGANIZATIONG/SCM/N/74/LKA
7 January 2002
(02-0053)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Requests Pursuant to Article 27.4 of the Agreement
on Subsidies and Countervailing Measures
Requests Pursuant to the Procedure in Document G/SCM/39
SRI LANKA
The following communication, dated 20 December 2001, has been received from the
Permanent Mission of the Democratic Socialist Republic of Sri Lanka.
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In accordance with the Decision on Implementation-Related Issues and Concerns
[WT/MIN(01)/17, paragraph 10.6 ] and with refere nce to document G/SCM/39, adopted by the Fourth
WTO Ministerial Conference, held from 9 to 14 November 2001 in Doha, Qatar, the Government of
Sri Lanka wishes to reserve Sri Lanka's rights, as a Member listed in Annex VII(b) of the SCM
Agreement, and pursuant to paragraph 6 of the procedures set forth in document G/SCM/39, to
request an extension under Article 27.4 of the Agreement on Subsidies and Countervailing Measures.
This reservation is in response to the economic, financial and development needs of the
Government of Sri Lanka.  In accordance with the provisions of paragraphs 6 and 1(a) of document
G/SCM/39, I have the pleasure in forwarding here with, as Annex-I, a list of eligible investment
incentive programmes that were in force as of 1 September 2001 and are currently being implemented
in Sri Lanka, for which Sri Lanka reserves its rights pursuant to paragraph 6 of the procedures to seek,under the rubric of Article 27.4 of the SCM Agreement, an extension of the transition period pursuant
to those procedures.
It should however be pertinent to mention that this submission shall not in any way be
interpreted as making a full notification by Sri Lanka.  The purpose of this submission is only tofacilitate the WTO membership to better understand the nature and scope of existing incentive
programmes for which Sri Lanka reserves the right to seek an extension of the transition period, as per
the above Ministerial Decision and the procedures set forth in G/SCM/39.
Further, the reservation and the information provided herein is without prejudice to the rights
and obligations of Sri Lanka under the Agreement on Subsidies and Countervailing Measures and
other WTO Agreements.
* * *G/SCM/N/74/LKA
Page 2ANNEX - I
A LIST OF ELIGIBLE PROGRAMMES
INCENTIVES AVAILABLE TO COMPANIES/ ENTERPRISES INVEST IN SRI LANKA
Programme Legislation
1. Income Tax Concessions
(a) Tax Holidays 1)  Board of Investment (BOI) Regulation No.1  of 1998 and Gazette Number 1019/13 of 19th March
1998 and subsequent amendments
2) Inland Revenue Act No.28 of 1979 and subsequent Amendments to the Act.
(b) Concessionary Tax Rates 1)  Board of Investment (BOI) Regulation No .1 of 1995 and  Gazette Number 896 of 10th November
1995 and subsequent amendments
2) Inland Revenue Act No.28 of 1979 and subsequent Amendments to the Act.
2. Tax Holidays on Profits Generated Inland Revenue Act No.28 of 1979 and subsequent Amendments to the Act.
3. Concessionary Tax on Dividends Inland Revenue Act No.28 of 1979 and subsequent Amendments to the Act.
4. Indirect Tax Concessions - Internal
Tax Exemptions
(a) Goods & Services Tax (GST) Goods and Services Tax Act No.34 of 1996 and subsequent amendments to the Act.
(b) National Security Levy (NSL) National Security Levy Act No. 52 of 1991 and subsequent amendments to the Act.
5. Export Development Investment
Support SchemeSri Lanka Export Development Board Act.
6. Import Duty Exemption
(a) On Capital Goods 1)  Board of Investment (BOI) Regulation No.1  of 1998 and  Gazette Number 1019/13 of 19th March
1998 and subsequent amendments
2) Sri Lanka Customs OrdinanceG/SCM/N/74/LKA
Page 33) Sri Lanka Export Development Act
4) Import and Export Control Act
(b) On Raw Materials 1)  Board of Investment (BOI) Regulation No.1  of 1998 and  Gazette Number 1019/13 of 19th March
1998 and subsequent amendments
2) Sri Lanka Customs Ordinance
3) Sri Lanka Export Development Act
4) Import and Export Control Act
(c) On Intermediate Goods 1)  Board of Investment (BOI) Regulation No.1  of 1998 and  Gazette Number 1019/13 of 19th March
1998 and subsequent amendments
2) Sri Lanka Customs Ordinance
3) Sri Lanka Export Development Act
4) Import and Export Control Act
7. Exemption from Exchange Control 1) Board of Investment (BOI) Regulation No.1  of 1998 and  Gazette Number 1019/13 of 19th March
1998 and subsequent amendments
2) Exchange Control Act
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