Port City employees to earn tax-free foreign currency salaries

According to the draft law on Colombo Port City Economic Commission, those employed at the special economic zone will only be remunerated in a designated foreign currency, other than in Sri Lankan rupee (LKR).

The draft legislation said foreign currency remuneration applies to those authorized persons (both, resident and non-resident) permitted to engage in business in and from the area of authority of the Colombo Port City.

Furthermore, any employment income of a resident employee will be exempt from income tax, and would be allowed to credit the funds to a personal foreign currency account. Exempted from income tax is also income of non-resident employees.

“Notwithstanding anything to the contrary contained in any other written law, such non-resident employees shall not be liable to income tax in Sri Lanka on any income earned outside Sri Lanka,” the draft law stated.