Tax relief provided by the Finance Ministry to designated investment projects and enterprise zones has crossed Rs. 276 billion across direct and indirect duty lines.
Official figures published in the Tax Expenditure Report 30 June 2026 highlight extensive tax revenue forgone through special benefits granted to Board of Investment firms and Strategic Development Projects.
Corporate income tax concessions made up the largest portion of this total, reaching Rs. 171.37 billion for Board of Investment enterprises in the 2024/25 basis year when measured against the benchmark 30 per cent corporate rate.
A tax base of Rs. 623.26 billion taxed at a reduced 14 per cent rate produced roughly Rs. 99.72 billion in concessions, while entities enjoying a complete zero rate accounted for an additional Rs. 52.97 billion.
Strategic Development Projects operating under a zero tax rate gained Rs. 18.39 billion in corporate tax relief from a tax base of Rs. 61.28 billion over the same operational timeframe.
Sri Lanka Customs data revealed that Board of Investment businesses received Rs. 76.13 billion in border tax waivers up to 31 May 2026.
These border concessions comprised Rs. 36.86 billion in Customs Import Duty, Rs. 23.05 billion in Ports and Airports Development Levy, and Rs. 16.22 billion in CESS exemptions.
Border tax relief tied to Strategic Development Projects amounted to Rs. 886 million, whereas exemptions linked directly to Colombo Port City totaled Rs. 24.3 million during this timeframe.
Inland Revenue Department records showed Value Added Tax concessions for Board of Investment entities hit Rs. 9.58 billion in the first quarter of 2026 from a tax base of Rs. 53.2 billion.
General manufacturing enterprises accounted for Rs. 5 billion of these Value Added Tax concessions, with wholesale and retail services taking Rs. 3.45 billion and textiles and garments receiving Rs. 349 million.
Strategic Development Projects logged another Rs. 43 million in Value Added Tax relief during the identical quarter.
Treasury officials highlighted that because the report gathers data across varying tax timeframes, the overall numbers cannot be interpreted as a single period revenue loss.
The document clarifies that these statistical figures do not measure the broader economic value generated through employment creation, foreign investment, or export proceeds.