Nov 30, Colombo: The Sri Lankan government has decided to grant tax relief for investments made by migrant workers who earn valuable foreign exchange for the country.
The cabinet of ministers has given approval to a proposal made by the Minister of Foreign Employment Promotion and Welfare Dilan Perera to grant relevant tax exemptions for importation of machinery and equipment for returnee migrant workers to invest on new businesses.
Addressing the weekly cabinet news briefing, Minister Anura Priyadarshana Yapa said the tax relief is being granted for five years for the investments made by migrant workers who return to the country.
Profits earned by migrant workers from domestic investments made through their earnings will also be free from income tax, turnover tax and the Nation Building Tax for a period of five years.
The state banks are also to provide special loan schemes for these workers under stipulated conditions.
The remittances from the expatriate workers have seen an upward trend making it the highest foreign exchange earnings to the country, the government says.
The foreign exchange earnings by the migrant workers reached US$ 5.2 billion in 2011 despite the poor global economy.