Sri Lanka to charge 15-pct VAT on air tickets, houses, healthcare, milk products

ECONOMYNEXT -Sri Lanka will tax air tickets, housing, sweetened milk and healthcare at 15 percent under in value added increases approved by the cabinet of ministers.

There will be some exemptions for outpatient treatment, dialysis and medical tests, Information Minister Gayantha Karunathilake said.

A 15 percent VAT will also be imposed on tobacco and telecom services. Sri Lanka already has charges high levels of taxes around 30 percent on telecom services.

VAT will also be charged on air tickets from an airport in Sri Lanka to a foreign airport.

The changes will be gazetted and also passed in parliament, Minister Karunathilake said.

Sri Lanka T-bill yields steady at auction

ECONOMYNEXT - Sri Lanka's Treasury Bill yields remained steady at Tuesday's auction with the central bank not accepting bids for 03-month bills, data from the state debt office showed.

The 6-month yield remained at 9.71% with the debt office receiving bids worth Rs16.6 billion and accepting only a billion rupees.

The 12-month yield remained at 10.39% with the debt office getting Rs30.5 billion worth of bids and accepting bids of only Rs12.3 billion.

UDA acquires Cargo Boat property

The Megalopolis and Western Development Ministry has sent a letter to Cargo Boat Development Company mentioning that the Urban Development Authority has taken action to acquire the above property to develop as a multi-storey car park.

The property which is at Janadhipathi Mawatha, Colombo 1,owned by Cargo Boat Development Company was purchased by the company in January 2010 to develop a multi storey car park.
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Kotagala Plantations to raise Rs 800 mn

Kotagala Plantations is to issue 80,000,000 ordinary shares at a price of Rs.10 per share by way of a Rights Issue in the proportion of two new ordinary shares for every one existing issued ordinary share.

The funds realized from the Issue will be utilized to settle outstanding statutory liabilities and to meet working capital requirements.The stated capital of the company is Rs 680,000,010 and the Rights Issue of Shares will not be underwritten.

The rights issue of shares is subject to approval SEC and shareholder approval at an Extraordinary General Meeting.
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