22.
| (1)The profits and income within the meaning of paragraph (a) of section 3 (other than any profits and income from the sale of capital assets) of any new undertaking of a company which is engaged solely in research and development, with an investment of not less than two million rupees made within one year from the commencement of such undertaking, shall be exempt from income tax for a period of five years, reckoned from the year of assessment in which the undertaking commences to make profits or any year of assessment not later than two years, reckoned from the date on which the undertaking commences to carry on commercial operations whichever is earlier. |
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| (2)For the purpose subsection (1) "research and development" means any systematic or intensive study carried out in the field of science or technology with the object of using the results thereof for the production or improvement of materials, devices, products, produce or process (other than quality control of products or routine testing materials, devices, research in social science or humanities, routine data collection, efficiency surveys or management studies and market research or sales promotion). |
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Sri Lanka Consolidated Acts