Sri Lanka has removed an exemption from the National Building Tax (NBT) on cigarettes, while implementing an exempting from the NBT on projects more than US$ 50 million, or of equivalent foreign currency value.

These include, Hotels with foreign currency transactions, palm oil, sea vessels and equipment used for sea sports.

The Changes were announced by finance minister to parliament on October 23. The changes are as below.

(i). Exemption applicable on the importation of unprocessed gem stones will be granted on the approval of National Gem and Jewellery Authority if the payment such services is in foreign currency and remitted to Sri Lanka.

(ii). Exemption applicable on the services provided by the construction sub- contractors will be extended to the main contractors as well.

(iii). Exemption of hotel services provide for foreign currency

(iv). Exemption of importation of Lucerne (alfalfa) meal and pellets.

(v). Exemption of locally value added imported palm oil.

(vi). Exemption of importation of yachts and other vessels for pleasure or sports.

(vii). Removal of exemption of cigarette.

(viii). Exemption of projects with an investment of USD 50Mn or above during the project  implementation period or the construction period.