10.The following new sections are hereby inserted immediately after section 16, and shall have effect as section 16a and 16b of the principal enactment:
| 16A.
| | (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 undertaking referred to in subsection (2) shall be exempt from income tax for a period of ten years, such period of ten years being calculated from the date on which such undertaking commenced to carry on business. | | |
| | (2) The provisions of subsection (1) shall apply to any undertaking of operating hotels for tourists
| | | (a) which is on the recommendation of the Ceylon Tourist Board approved by the Minister by Order published in the Gazette; |
| (b) which is carried on by a quoted public company incorporated on or after November 15, 1979 ; and |
| (c) the subscribed equity capital of which is not less than one hundred million rupees. |
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| 16B. The relevant profits and income of an undertaking, of operating hotels for tourists, which has been approved by the Minister under section 6 (1) (v) of the Inland Revenue Act, No. 4 of 1963, or under section 16 (a) of this Act and which after November 15, 1979, constructs additional bed rooms for its use, shall be exempt from income tax for a period of five years calculated from the date on which such additional bedrooms are constructed if the construction of such additional bedrooms has been approved by the Minister, on the recommendation of the Ceylon Tourist Board, by Order published in the Gazette as being essential to the development of the tourist industry. |
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Sri Lanka Consolidated Acts