🇱🇰 Sri Lanka's IT & BPM sector urges govt to reconsider new tax measures on export services. Industry warns of reduced competitiveness &

🇱🇰 Sri Lanka's IT & BPM sector urges govt to reconsider new tax measures on export services. Industry warns of reduced competitiveness & hindered growth.

⭕ Key facts: Sector generated ~$2B exports in 2023, employs 144,000+ professionals.

⭕Concerns: High taxes may lead to talent exodus, limited innovation & training investments.

⭕ Industry proposes: Extend current tax exemption to 2026, implement new measures gradually, offset training costs, establish ongoing consultation with sector reps.

⭕ Sri Lankan companies are increasingly setting up offices in regional tax havens like Dubai and Singapore to reduce their tax burden. This trend risks draining profits and growth from the local economy, as these companies have no incentive to bring their surplus here.

⭕ Policymakers should seek a balanced approach - one that ensures appropriate taxation while still incentivizing companies to repatriate profits and drive sector growth in Sri Lanka.