ACT, No. 18 OF 2011

18of2011.pdf
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PARLIAMENT OF THE DEMOCRATIC
SOCIALIST REPUBLIC OF
SRI LANKA
PORTS AND AIRPORTS DEVELOPMENT
LEVY ACT, No. 18 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
TO BEPURCHASED AT THEGOVERNMENT PUBLICATIONSBUREAU, COLOMBO 5
Price : Rs. 5.00 Postage : Rs. 10.00

Ports and Airports Development Levy 1
Act, No. 18 of 2011
[Certified on 31st March 2011]
L.D.—O. 9/2011.
ANACT TO MAKE PROVISION FOR THE IMPOSITION AND COLLECTION OF A
LEVY TO BE CALLED THE PORTS AND AIRPORTS DEVELOPMENT LEVY
ON EVERY ARTICLE ORIGINATING FROM OUTSIDE SRI LANKA AND
IMPORTED INTO SRI LANKA; TO AMEND PART I OF THE FINANCE ACT,
NO. 11 OF 2002; AND TO PROVIDE FOR MATTERS CONNECTED
THEREWITH OR INCIDENTAL THERETO.
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows:—
1. This Act may be cited as the Ports and Airports Short title.
Development Levy Act, No. 18 of 2011.
PART I
IMPOSITION OF PORTS AND AIRPORTS DEVELOPMENT LEVY
2. Subject to the provisions of section 7, there shall be Levy on articles
charged and levied on the cost, insurance and freight value imported into
Sri Lanka.
of every article originating from outside Sri Lanka and
imported into Sri Lanka, a levy to be called the Ports and
Airports Development Levy ( hereinafter in this Part referred
to as the “Levy”).
3. (1) The levy to be charged and levied in respect of Manner of
the cost, insurance and freight value of any article referred calculating the
levy.
to in section 2 shall be calculated, at the rate of 5.0
percentum, for the period commencing on January 1, 2011.
(2) With effect from January 1, 2011, no levy shall be
charged in respect of the cost, insurance and freight value of
any article imported into Sri Lanka—
(a) for the purpose of processing and re-export; or
(b) to be used for the manufacture of goods for exports.
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Act, No. 18 of 2011
(3) The Minister may, from time to time having regard to
the interests of the national economy, by Order published in
the Gazette—
(a) exempt from the operation of the above levy, any
article specified therein; or
(b) specify a concessionary rate to be charged and
levied in respect of any article or articles specified
therein.
(4) Every Order, made in terms of subsection (3) by the
Minister shall—
(i) be in operation immediately upon the Minister
affixing his signature thereto;
(ii) be published in the Gazette as soon as convenient;
(iii) be approved by resolution of Parliament as soon as
convenient thereafter; and
(iv) if not approved by Parliament, be deemed to be
rescinded with effect from the date of such
resolution.”.
No levy to be 4. (1) The following articles shall be exempt from the
charged in Ports and Airports Development Levy—
respect of
specified
articles. (i) foreign currency notes as specified under the
relevant Harmonized Commodity Description and
coding System Numbers for the purposes of
Customs Ordinance (Chapter 235) (with effect from
June 1, 2010);
(ii) goods for the use of international events conducted
in Sri Lanka, on donations from abroad, as approved
by the Minister in charge of the subject of Finance
having regard to the interests of the national
economy (with effect from May 12, 2010);
Ports and Airports Development Levy 3
Act, No. 18 of 2011
(iii) goods for any infrastructure development project
out of the donations directly to Government
Ministries, as approved by the Minister in charge
of the subject of Finance;
(iv) goods for any specified project funded through
foreign loans and on which project the tax is borne
by the Government, as approved by the Minister in
charge of the subject of Finance having regard to
the interests of the national economy; and
(v) any other article which the Minister in charge of
the subject of Finance may, by Order published in
the Gazette, in terms of subsection (3) of section 3,
declare as being an exempted article.
(2) Notwithstanding the provisions of sections 2 and 3,
the Director-General of Customs shall defer the collection
of the levy on the importation of any article, for the use of
any specified project identified by the Minister in charge of
the subject of Finance, by an Order published in the Gazette,
having regard to the interests of the national economy on
which the tax is borne by the government, with effect from
July 1, 2009 until such time the article is re-exported after
the completion of such project, subject to the furnishing of
a corporate guarantee which covers the amount of the tax
due on the articles so imported.
5. The levy payable under section 2 on an article Levy to be paid
imported into Sri Lanka, shall be paid by the person importing to the Director-
General of
the article to the Director-General of Customs, at the time of
Customs.
the import of the article, and upon payment of the levy the
Director-General of Customs shall cause an endorsement
specifying the amount recovered as the levy to be made on
the import invoice relating to that article.
6. Where any article originating from outside Sri Lanka Purchase of
and imported into Sri Lanka is sold— certain articles
deemed to be
imported for the
(a) by the Director-General of Customs for the recovery
purpose of this
of any customs duty, surcharge or other levy payable Act.
4 Ports and Airports Development Levy
Act, No. 18 of 2011
or deemed to be payable under the Customs
Ordinance or for any contravention of the
provisions of the Customs Ordinance (Chapter 235);
(b) by the Sri Lanka Ports Authority established by the
Sri Lanka Ports Authority Act, No. 51 of 1979, for
the recovery of any dues under that Act; or
(c) by the Commissioner-General of Inland Revenue,
for any taxes administered by him,
the purchaser of that article shall be deemed for the purposes
of section 5 to be the person importing that article and the
provisions of this Act shall accordingly apply to such purchaser.
Exemptions. 7. Nothing in section 2 shall apply to any article
imported into Sri Lanka in respect of the provision of any
service by a mission of any State or any organization to
whom the provisions of the Diplomatic Privileges Act, No. 9
of 1996 applies.
Customs 8. The levy shall, for purposes of recovery of the levy
Ordinance to and notwithstanding anything to the contrary in this Act, be
apply to the
deemed to be a customs duty payable under the Customs
recovery of
levy. Ordinance (Chapter 235), and accordingly the provisions of
the Customs Ordinance (Chapter 235) shall apply to the
recovery of such levy.
Amount 9. The Director-General of Customs shall transmit to
recovered as the Consolidated Fund, all sums recovered by him as the
levy to be
levy under this Act.
credited to the
Consolidated
Fund.
Interpretation. 10. In this Part, unless the context otherwise requires,
“article” means any goods, materials, foreign currency notes,
any agricultural or horticultural products or merchandise
but does not include diamonds, gems, gold, jewellery and
electronic items, imported for the purpose of processing and
re-export.
Ports and Airports Development Levy 5
Act, No. 18 of 2011
11. The provisions of— Retrospective
effect.
(1) paragraph (i) of subsection (1) of section 4 of this
Act shall be deemed for all purposes to have come
into effect on June 1, 2010;
(2) paragraph (ii) of subsection (1) of section 4 of this
Act shall be deemed for all purposes to have come
into effect on May 12, 2010;
(3) paragraph (iii) of subsection (1) of section 4 of this
Act shall be deemed for all purposes to have come
into effect on September 8, 2010;
(4) paragraph (iv) of subsection (1) of section 4 of this
Act shall be deemed for all purposes to have come
into effect on January 1, 2010;
12. The provisions of this Act shall, be deemed for all Operation of the
purposes to have come in to operation on January 1, 2011. provisions of
this Act,
13. Where the Director-General of Customs collects, Indemnity.
during the period commencing on January 1, 2011 and
ending on the date of the commencement of this Act, from a
person importing any article, the levy on such amount as is
equal to five percentum as specified in section 3 of this Act
on the cost, insurance and freight value of such article, such
collection, shall be deemed for all purposes to have been,
and to be, validly made, and the Director-General of Customs
is hereby indemnified against all action, civil or criminal, in
respect of such collection.
14. (1) The Minister may make regulations in respect of Regulations.
all matters which are required by this Act to be prescribed or
in respect of which regulations are required or authorized to
be made under this Act.
(2) Every regulation made under subsection (1) shall be
published in the Gazette and shall come into operation on
the date of publication, or on later date as may be specified
therein.
6 Ports and Airports Development Levy
Act, No. 18 of 2011
(3) Every regulation made under subsection (1) shall, as
soon as convenient after its publication in the Gazette, be
placed before Parliament for approval. Every regulation
which is not so approved shall be deemed to be rescinded as
from the date of disapproval, but without prejudice to
anything previously done thereunder.
(4) Notification of the date on which any regulation is
deemed to be so rescinded shall be published in the Gazette.
PART II
AMENDMENT OF PART I OF THE FINANCE ACT, NO. 11 OF 2002
Amendment of 15. Section 2 of the Finance Act, No. 11 of 2002 (Part I)
section 2 of Part is hereby amended in the first proviso to that section, by the
I of the Finance
repeal of paragraph (d) thereof and the substitution therefor
Act, No. 11 of
2002. of the following paragraph:—
“(d) for the period commencing on January 1, 2009
and ending on December 31, 2010 at the rate of
5.0 per centum.”.
Part I of the 16. It is hereby declared for the avoidance of doubts,
Finance Act, No. that the provisions of Part I of the Finance Act, No. 11 of
11 of 2002 not
2002 relating to the payment of the Ports and Airports
to apply.
Development Levy shall not apply to any article originating
from outside Sri Lanka and imported into Sri Lanka or after
January 1, 2011.
Sinhala text to 17. In the event of any inconsistency between the
prevail in case Sinhala and Tamil texts of this Act, the Sinhala text shall
of any
inconsistency. prevail.

Ports and Airports Development Levy 7
Act, No. 18 of 2011
Annual subscription of English Bills and Acts of the Parliament Rs. 885 (Local), Rs. 1,180
(Foreign), Payable to the SUPERINTENDENT, GOVERNMENT PUBLICATIONS BUREAU, DEPARTMENT OF
GOVERNMENT INFORMATION, NO. 163, KIRULAPONA MAWATHA, POLHENGODA, COLOMBO 05 before 15th
December each year in respect of the year following.
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