SJB questions tax exemptions given to Adani-led project

The main Opposition Samagi Jana Balavegaya (SJB) raised the issue of tax exemptions given to West Container Terminal (WCT) at a meeting chaired by Anura Priyadarshana Yapa, Chairman of the Committee on Public Finance.

This was the first Committee meeting held for the Second Session of the Ninth Parliament.

India’s Adani Group in late September last year sealed a deal with the Sri Lanka Ports Authority (SLPA) to develop and run the strategic Colombo Port’s West Container Terminal. Adani secured 51 per cent stake at the WCT.

The two local entities would hold 34 % (SLPA) and 15 (JKH) % cent stakes of the new joint company titled the West Container International Terminal.

A statement issued by Parliament yesterday (10) stated that the Gazette Extraordinary No. 2254/2 of 15th November 2021 for the purpose of tax exemptions for the West Container Terminal (WCT-1) Expansion Development Project for under the Strategic Development Projects Act, No. 14 of 2008 was also approved at the Committee meeting.

“It will exempt the shareholders of the project from income tax for a period of 25 years and VAT, PAL, Cess and Customs exemptions will be for a period of 5 years. MP Harsha de Silva has asked the newly appointed Chairman to the Board of Investments (BOI) Raja Edirisuriya how appropriate this tax exemption is for a country like Sri Lanka which is suffering from economic difficulties. MP Prof. Ranjith Bandara pointed out that granting such tax exemptions is essential in order to compete with other countries in the current context, according to the statement,” the statement added.