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Navigating through Uncertainty

Budget 2021 Analysis and Insights

Budget speech 2021 presented by Prime Minister, Hon. Mahinda Rajapaksa, Minister of Finance, focuses on strengthening the 2021-2023 medium term programme of poverty alleviation and economic revival as envisaged within the “Vistas of Prosperity and Splendour”, the policy framework of the government of HE the President Gotabaya Rajapaksa.
The proposals are aimed at facilitating a self-sufficient, in house economic growth and development strategy, minimizing the disparities in income levels between provinces and the urban rural inequalities. Proposals contain export development strategies, increase in FDIs and a consistent tax policy.
We share key highlights from the Budget, insights from our tax experts, related publications and more.


Budget at a glance

  • 50%

    50% tax concession for 2021/2022 for companies that are listed before 31 December 2021

  • 0.25%

    0.25% of the turnover to be contributed to a proposed insurance fund

  • 10 years

    10 year tax holiday for investments in selected recycling sites

  • US 25 mn

    Tax concessions for 05 years for capital investments over USD 25 Mn in the dairy industry

  • 1%

    Tax Amnesty on utilising undeclared funds for investment by payment of a 1% tax.

  • 5 years

    A tax holiday of 05 years to private vocational institutions that double their intake

  • 7 years

    A tax holiday of 7 years for all renewable energy projects.

  • 0.75%

    Reduction of stamp duty to 0.75% on investments in the housing market through the SLREITs

Budget with PwC: Post-Budget Analysis 2021

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PwC Sri Lanka hosted a virtual discussion on the 17 November 2020 at 08.30 pm with our subject matter experts and guest speakers to guide you through the proposals, providing you with insights on how it will impact our economic landscape along the way.

Keynote Speaker 

Hon. Dr. Ajith Nivard Cabraal - State Minister of Money & Capital Market and State Enterprise Reforms


Dr. W.A. Wijewardena - Former Deputy Governor, Central Bank of Sri Lanka

Prabhash Subasinghe - Chairman of Export Development Board

Dimantha Seneviratne - Chief Executive Officer, National Development Bank PLC

Charmaine Tillekeratne, Director - Tax Services, PwC Sri Lanka

Ruvini Fernando, Director - Capital Projects and Infrastructure, PwC Sri Lanka

A.M. Nafeel, Commissioner - Tax Policy & Legislation Unit (Secretariat),  Inland Revenue Department


Sujeewa Mudalige, Managing Partner, PwC Sri Lanka


Talk to our tax professionals

Sujeewa Mudalige

Chief Executive Officer, Colombo, PwC Sri Lanka

+94 11 771 9700 ext.5001


Charmaine Tillekeratne

Director, Tax Services , Colombo, PwC Sri Lanka

+94 11 771 9700 ext: 4201


Rishini Manatunga

Associate Director - Tax Services, PwC Sri Lanka

T: +94 11 771 9700 ext. 4701


Tharanga Amarasena

Associate Director - Tax Services, PwC Sri Lanka

+94 11 771 9700 ext. 4401