ACT, No. 15 OF 2011

15of2011.pdf
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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
FINANCE (AMENDMENT)
ACT, No. 15 OF 2011
[Certified on 31st March, 2011]
Printed on the Order of Government
Published as a Supplement to Part II of the Gazette of the Democratic
Socialist Republic of Sri Lanka of April 01, 2011
PRINTEDAT THEDEPARTMENT OFGOVERNMENTPRINTING,SRILANKA
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Finance (Amendment) Act, No. 15 of 2011 1
[Certified on 31st March, 2011]
L.D.— O. 6/2011
AN ACT TO AMEND THE FINANCE ACT, NO. 11 OF 2006, THE FINANCE
ACT, NO. 5 OF 2005, THE FINANCE ACT, NO. 25 OF 2003 AND THE
FINANCE ACT, NO. 16 OF 1995
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows:-
1. This Act may be cited as the Finance (Amendment) Short title.
Act No. 15 of 2011.
PART I
AMENDMENT OF PART I OF THE FINANCE ACT, NO. 11 OF 2006
2. Part I of the Finance Act, No. 11 of 2006 is hereby Amendment
amended in sub-paragraph (ii) of paragraph (b) of subsection of section 2 of
(1) of section 2 thereof, by the substitution for the words and Part I of Act,
No. 11 of
figures “(ii) from and after the date of commencement of this
2006.
Act,” to the words and figures “Act, No. 10 of 2006, as the
case may be,” of the following:-
“(ii) from and after the commencement of this Act,-
(a) from every individual who has not in terms
of paragraph (i) above, availed himself of the
concession referred to therein, or every
individual who has paid in respect of any
period of five consecutive years of assessment
commencing on April 1, 2001 and ending on
March 31, 2011; or
(b) from every individual who has not in terms
of paragraph (i) above, availed himself of the
concession referred to therein, or every
individual who has paid in respect of any
period of ten consecutive years of assessment
commencing on April 1, 2001 ,
2 Finance (Amendment) Act, No. 15 of 2011
income tax in terms of the Inland Revenue Act,
No. 38 of 2000, or the Inland Revenue Act, No. 10
of 2006, as the case may be,”.
PART II
AMENDMENT OF PART I OF THE FINANCE ACT, NO. 5 OF 2005
Amendment of 3. Part I (Imposition of Social Responsibility Levy) of
section 2 of the Finance Act, No. 5 of 2005 (hereinafter in this Part
Part I of Act,
referred to as the “principal enactment”), is hereby amended
No. 5 of 2005.
in section 2 thereof as follows –
(1) by the repeal of paragraph (c) of that section, and
the substitution therefor of the following new
paragraph:-
“(c) the rate of 1.5 per centum, for the period
commencing on January 1, 2008 and
ending on –
(i) November 22, 2010 in respect of the
Social Responsibility Levy chargeable
under the Excise Ordinance (Chapter
52), the Customs Ordinance (Chapter
235) and the Excise (Special
Provisions) Act, No.13 of 1989; and
(ii) March 31, 2011 in respect of the Social
Responsibility Levy chargeable under
the provisions of the Inland Revenue
Act No. 10 of 2006:”;
(2) by the repeal of sub-paragraph (ii) of the second
proviso to that section and substitution therefore
of the following new sub-paragraph:-
“(ii) in respect of the period commencing on April
1, 2008, but prior to April 1, 2011, be
calculated at the rate of 1.5% per centum:”.
Finance (Amendment) Act, No. 15 of 2011 3
4. The First Schedule to the principal enactment Amendment of
the First
(relating to the Imposition of Social Responsibility Levy) Schedule to the
is hereby amended by the substitution for item 6 of that principal
Schedule of the following new item:- enactment.
“6. The Inland Revenue Act No. 10 of 2006, (other
than the provisions of Chapters XVI , XVII and
XXI and sections 36 and 65, in so far as such Act
applies to any company and to any period
commencing on or after April 1, 2008 and
ending on March 31, 2011.”
PART III
AMENDMENT OF PART II OF THE FINANCE ACT, NO. 5 OF 2005
5. Part II (Imposition of Share Transaction Levy) of Replacement of
the Finance Act, No. 5 of 2005 is hereby amended with effect section 7 of Act,
No. 5 of 2005.
from January 1, 2011, by the repeal of section 7 thereof
and the substitution therefor of the following section:-
“Imposition 7. There shall be imposed, a levy called
of Share
the Share Transaction Levy –
Transaction
Levy.
(a) for any period commencing from
January 1, 2005, but prior to January
1, 2011, at the rate of 0.2 per centum;
and
(b) for any period commencing on or
after January 1, 2011, at the rate of
0.3 per centum,
from every buyer and seller, on the turnover of
every share trading transaction, which is
conducted through a Stock Exchange.”.
4 Finance (Amendment) Act, No. 15 of 2011
Indemnity. 6. Where the Share Transaction Levy has been
charged and collected by the Commissioner – General
of Inland Revenue in terms of this Part of this Act, during
the period commencing on January 1, 2011 and ending
on the date of the commencement of this Act, such
Levy shall be deemed to have been validly charged
and collected and Commissioner – General of
Inland Revenue is hereby indemnified from any action
civil or criminal in respect of collection of the aforesaid
Levy.
PART IV
AMENDMENT OF PART III OF THE FINANCE ACT, NO. 5 OF 2005
Amendment of 7. Part III (Construction Guarantee Fund Levy) of
section 13 of
the Finance Act, No. 5 of 2005 is hereby amended with
Act, No. 5 of
2005. effect from January 1, 2011, in section 13 thereof as follows:-
(1) by the renumbering of that section as subsection
(1) of that section ;
(2) by the addition immediately after the
re- numbered subsection (1), of the following new
subsection:-
“(2) No Construction Industry Guarantee
Fund Levy shall be charged on any construction
contract to be entered into and enforced in
Sri Lanka by any construction contractor, on their
contract value in respect of contracts for the
implementation of specified projects approved by
the Minister of Finance, entered into from and
after January 1, 2011,”.
Finance (Amendment) Act, No. 15 of 2011 5
PART V
AMENDMENT OF PART II OF THE FINANCE ACT, NO. 25 OF 2003
8. The following new Part is hereby inserted Insertion of new
Part IIA in Act,
immediately after section 13 (Part II) of the Finance Act, No. 25 of 2003.
No. 25 of 2003 and shall have effect as Part IIA of that
enactment:-
“PART IIA
THE LEVY ON ROOMS OF FIVE STAR HOTELS
“Payment of 13A. (1) Every hotel within the limits of the
levy by five area of authority of the Colombo Municipal
star hotels
where room Council and Dehiwala-Mount Lavinia
charges are Municipal Council which are classified as a
less than one “Five Star Hotel” for the purpose of minimum
hundred and
twenty five rates in terms of Price Regulation Order made
United States under section 53 of the Tourism Act, No. 38 of
Dollars. . 2005, shall be required to pay, with effect from
April 1, 2011, a levy, amounting to United
States Dollars twenty or its equivalent in
Sri Lanka rupees, in respect of each room in
every such hotel, if such hotle comprises of
rooms in respect of which charges per room is
less then United States Dollars one hundred
and twenty five.
(2) The levy imposed under subsection (1)
shall be paid in such manner as specified in the
guidelines issued for this purpose under
subsection (3) and shall be collected by the
Chairman of Sri Lanka Tourism Development
Authority established under the Tourism Act,
No. 38 of 2005 in respect of each month
commencing from April 1, 2011. Such levy
6 Finance (Amendment) Act, No. 15 of 2011
shall be collected by the Chairman within
fifteen days from the last day of the month in
which such amount falls due and the Chairman
shall within seven days from the date of
collection, remit the same to the Consolidated
Fund. The Chairman shall also submit a written
statement setting out all details of the amounts
collected by him to the Secretary to the
Treasury.
(3) The Minister may, from time to time
issue guildlines in relation to the collection
and remittance of the levy under this section.”.
PART VI
AMENDMENT OF PART II OF THE FINANCE ACT, NO. 16 OF 1995
Replacement of 9. Section 3 of the Finance Act, No.16 of 1995
section 3 of Act (hereinafter in this Part referred to as the “principal
No.16 of 1995. enactment”) is hereby repealed and the following section
substituted therefor:-
“Annual 3. There shall be charged, levied and paid,
luxury motor on every luxury motor vehicle (other than a
vehicle levy. semi-luxury dual purpose motor vehicle or a
wagon)-
(a) where the first year of registration falls
prior to January 1, 2011, for every year
commencing on or after April 1, 1995,
but for a period not more than seven
years prior to January 1, 2011, at the
respective rates set out in Part I of the
First Schedule to this Act; and
(b) where the first year of registration falls
on or after January 1, 2011, for every
year commencing on or after January
1, 2011, but for a period not more than
seven years, at the respective rates set
Finance (Amendment) Act, No. 15 of 2011 7
out in Part II of the First Schedule to
this Act,
a luxury motor vehicle levy . The levy payable
for every such year shall be paid by the
registered owner of the luxury motor vehicle
on or before the relevant date.”.
10. Section 4 of principal enactment is hereby repealed Replacement of
and the following section substituted therefor :- section 4 of the
principal
enactment.
“Annual 4. There shall be charged, levied and paid,
semi-luxury
on every semi-luxury motor vehicle (other than
motor
vehicle levy. a semi-luxury dual purpose motor vehicle or a
wagon) –
(a) where the first year of registration falls
prior to January 1, 2011, for every year
commencing on or after April 1, 1995,
but for a period not more than seven
years, prior to January 1, 2011 at the
respective rates set out in Part I of the
Second Schedule to this Act; and
(b) where the first year of registration falls
on or after January 1, 2011, for every
year commencing on or after January 1,
2011, but for a period not more than
seven years, at the respective rates set
out in Part II of the Second Schedule to
this Act,
a semi-luxury motor vehicle levy. The levy
payable for every such year shall be paid by
the registered owner of the semi-luxury motor
vehicle on or before the relevant date .”.
11. Section 5 of the principal enactment is hereby Replacement of
repealed and the following section substituted therefor :- section 5 of the
principal
enactment.
8 Finance (Amendment) Act, No. 15 of 2011
“Annual 5. There shall be charged, levied and paid,
semi-luxury on every semi-luxury dual purpose motor
dual purpose vehicle (other than a wagon) –
motor
vehicle levy. (a) where the first year of registration falls
prior to January 1, 2011, for every year
commencing on or after April 1, 1995,
but for a period not more than seven
years prior to January 1, 2011, at the
respective rates set out in Part I of the
Third Schedule to this Act; and
(b) where the first year of registration falls
on or after January 1, 2011, for every
year commencing on or after January 1,
2011, but for a period not more than
seven years, at the respective rates set
out in Part II of the Third Schedule to
this Act,
a semi-luxury dual purpose motor vehicle levy.
The levy payable for every such year shall be
paid by the registered owner of the semi-luxury
dual purpose motor vehicle on or before the
relevant date.”.
Amendment of 12. First Schedule to the principal enactment is hereby
the First
amended-
Schedule to the
principal
enactment. (1) by the insertion immediately after the heading
“Rates of levy on luxury Motor vehicles” of the
following:-
“ PART- I
For any year commencing on or after April 1, 1995,
but prior to January 1, 2011:-”;
(2) by the addition at the end of the First Schedule of
the following Part:-”

Finance (Amendment) Act, No. 15 of 2011 9
“ PART- II
For any year commencing on or after January 1, 2011:-
Year Rate
Rs.
1 For the year in which such luxury motor vehicle
is registered (being a year commencing on or
after January 1, 2011) 100,000
2 For the first year succeeding the year in which
such luxury motor vehicle is registered (whether
the year of registration is any year commencing
on or after January 1, 2011) 78,750
3 For the second year succeeding the year in which
such luxury motor vehicle is registered (whether
the year of registration is any year commencing
on or after January 1, 2011) 68,000
4 For the third year succeeding the year in which
such luxury motor vehicle is registered (whether
the year of registration is any year commencing
on or after January 1, 2011) 57,750
5 For the fourth year succeeding the year in which
such luxury motor vehicle is registered (whether
the year of registration is any year commencing
on or after January 1, 2011) 48,000
6 For the fifth year succeeding the year in which
such luxury motor vehicle is registered (whether
the year of registration is any year commencing
on or after January 1, 2011) 38,750
7 For the sixth year succeeding the year in which
such luxury motor vehicle is registered (whether
the year of registration is any year commencing
on or after January 1, 2011) 30,000
8 For the seventh year succeeding the year in
which such luxury motor vehicle is registered
(whether the year of registration is any year
commencing on or after January 1, 2011) Nil
10 Finance (Amendment) Act, No. 15 of 2011
EXAMPLE
(a) A luxury motor vehicle is registered on August 1,
2007, the levy applicable on such luxury motor
vehicle for the year commencing on January 1, 2011
(which is the fourth year succeeding the year of
registration) is Rs. 30,000.
(b) A luxury motor vehicle is registered on August 1,
2011, the levy applicable on such luxury motor
vehicle for the year commencing on January 1, 2011
is Rs. 100,000.
(c) A luxury motor vehicle is registered on August 1,
2012, the levy applicable on such luxury motor
vehicle for the year commencing on January 1, 2013
(which is the first year succeeding the year of
registration) is Rs. 78,750.”.
Amendment of 13. Second Schedule to the principal enactment is
the Second
hereby amended –
Schedule to the
principal
enactment. (1) by the insertion immediately after the heading
“Rates of levy on Semi-luxury Motor vehicles” of
the following:-
“PART – I
For any year commencing on or after April 1,
1995, but prior to January 1, 2011:-”;
(2) by the addition at the end of the Second Schedule
of the following Part:-”
“PART – II
For any year commencing on or after January 1,
2011:-

Finance (Amendment) Act, No. 15 of 2011 11
Year Rate
Rs.
1 For the year in which such semi-luxury motor
vehicle is registered (being a year commencing
on or after January 1, 2011) 50,000
2 For the first year succeeding the year in which
such semi-luxury motor vehicle is registered
(whether the year of registration is any year
commencing on or after January 1, 2011) 39,375
3 For the second year succeeding the year in which
such semi-luxury motor vehicle is registered
(whether the year of registration is any year
commencing on or after January 1, 2011) 34,000
4 For the third year succeeding the year in which
such luxury motor vehicle is registered (whether
the year of registration is any year commencing
on or after January 1, 2011) 28,875
5 For the fourth year succeeding the year in which
such semi-luxury motor vehicle is registered
(whether the year of registration is any year
commencing on or after January 1, 2011) 24,000
6 For the fifth year succeeding the year in which
such semi-luxury motor vehicle is registered
(whether the year of registration is any year
commencing on or after January 1, 2011) 19,375
7 For the sixth year succeeding the year in which
such semi-luxury motor vehicle is registered
(whether the year of registration is any year
commencing on or after January 1, 2011) 15,000
8 For the seventh year succeeding the year in
which such semi-luxury motor vehicle is
registered (whether the year of registration is
any year commencing on or after January 1,
2011) Nil”
14. Third Schedule to the principal enactment is hereby Amendment of
amended – the Third
Schedule to the
principal
(1) by the insertion immediately after the heading
enactment.
“Rates of levy on Semi-luxury Dual Purpose Motor
Vehicles” of the following:-

12 Finance (Amendment) Act, No. 15 of 2011
“ PART- I
For any year commencing on or after April 1,
1995, but prior to January 1 , 2011:-”;
(2) by the addition at the end of the Third Schedule of
the following Part:-
“PART – II
For any year commencing on or after January 1,
2011:-
Year Rate
Rs.
1 For the year in which such semi-luxury dual
purpose motor vehicle is registered (being a year
commencing on or after January 1, 2011) 20,000
2 For the first year succeeding the year in which
such semi-luxury dual purpose motor vehicle is
registered (whether the year of registration is
any year commencing on or after January 1,
2011) 15,750
3 For the second year succeeding the year in which
such semi-luxury dual purpose motor vehicle is
registered (whether the year of registration is
any year commencing on or after January 1,
2011) 13,600
4 For the third year succeeding the year in which
such semi-luxury dual purpose motor vehicle is
registered (whether the year of registration is
any year commencing on or after January 1,
2011) 11,550
5 For the fourth year succeeding the year in which
such semi-luxury dual purpose motor vehicle is
registered (whether the year of registration is
any year commencing on or after January 1,
2011) 9,600
6 For the fifth year succeeding the year in which
such semi-luxury dual purpose motor vehicle is
registered (whether the year of registration is
any year commencing on or after January 1,
2011) 7,750

Finance (Amendment) Act, No. 15 of 2011 13
7 For the sixth year succeeding the year in which
such semi-luxury dual purpose motor vehicle is
registered (whether the year of registration is
any year commencing on or after January 1,
2011) 6,000
8 For the seventh year succeeding the year in
which such semi-luxury dual purpose motor
vehicle is registered (whether the year of
registration is any year commencing on or after
January 1, 2011) Nil
15. The amendment made to the principal enactment Retrospective
by this Part of this Act, shall be deemed for all purposes to effect.
have come into force on January, 1, 2011.
16. Where any person or body of persons collects the Indemnity
levy as provided for in this Part of this Act, during the period
commencing from January, 1, 2011 and up to the date of the
coming into operation of this Act, such person shall be
deemed to have acted with due authority and such collection
shall be deemed for all purposes to have been and to be,
validly made and is hereby indemnified against all actions,
civil or criminal, in respect of such collection.
17. In the event of any inconsistency between the Sinhala text to
Sinhala and Tamil texts of this Act, the Sinhala text shall prevail in case
of inconsistency.
prevail.

14 Finance (Amendment) Act, No. 15 of 2011
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