Home / Letters to the Editor/ BOI clarification on ‘Justice must be served equally to all’

BOI clarification on ‘Justice must be served equally to all’

Comments / {{hitsCtrl.values.hits}} Views / Thursday, 7 September 2017 00:00

We refer to the article by ‘Outsider,’ titled ‘Justice must be served equally to all’ and published in the Daily FT of 30 August.

With reference to sections of the said article dealing specifically with the Board of Investment of Sri Lanka (BOI), the BOI wishes to clarify as follows:

1. Valuation of land

It is stated that the payment of approximately $ 11,500 per acre is unusually low and well below the normal price of $ 40,000 per acre expected for such a land. 

A value in the range of $ 40,000 as mentioned would be for lands which have been developed and provided with essential infrastructure. 

This was not the case of the land in question which is categorised as undeveloped, and did not comprise any of the infrastructure usually provided within a BOI Export Processing Zone. 

This is reflected in the Government Valuer’s pricing of $ 11,500 per acre (approx.). In fact, the investor paid a total of Rs. 210 m approx. which is higher than the Government Valuation of Rs. 170 m approx., which translates to $ 14,000 per acre. 

2. Lease premium

The above mentioned payment of Rs. 210 m is the total lease value for the land in question, for a lease period of 99 years, and this amount was paid up-front by the investor.

In such a situation, an annual ground rental is not charged. However, a lease rental is indicated by the Valuation Department on a nominal basis. This practice is only to place on record an annual reminder of the lease agreement to the relevant authorities. It is this nominal payment that was valued at Rs. 10,000 per annum.

3. Tax holiday

The proposal for the project in question was submitted on 28 March 2016. However, delays in finalising the allocation of land resulted in the agreement not being signed before the deadline for granting of tax holidays (26 April 2016) given by Cabinet. 

Therefore Cabinet approved an eight-year tax holiday, also taking into consideration the long gestation period involved in similar investments, and the need to enhance the country’s investment climate through significantly high value export-oriented investments of this nature.

Share This Article


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

Putin, Mahinda and Gotabaya

Tuesday, 20 March 2018

I have to say that I am very happy indeed about the resounding victory scored by President Putin. If not for him, there would be no multi-polarity in the world; no chance of a global equilibrium; no ally for the rising economic power of China which w

President’s backflip toward Rajapaksa camp summons Ranil’s reserves to meet the challenge

Tuesday, 20 March 2018

Ranil Wickremesinghe, Prime Minister of Sri Lanka, is hard put to it in meeting the very strenuously intricate challenge foisted upon him by his partner in the Yahapalanaya Government – President Maithripala Sirisena. Inasmuch as Mahinda Rajapaksa

The world moves forward and we move backwards

Tuesday, 20 March 2018

Communal riots emerged once again. It will emerge over and over again since we, those who govern and those who are governed, over and over again prove that we do not learn from the past mistakes. My first experience of communal riots was black July 1

Drop the guns, ‘Hit Refresh’

Tuesday, 20 March 2018

‘Drop the guns’ is my addition based on his own analysis, but ‘Hit Refresh’ is Satya Nadella’s main title of the quite praiseworthy book with a vision for everyone, not only in the technology field, but also in other areas of knowledge and

Columnists More