Tax relief for local companies listing before December 31, 2021

By Hiran H.Senewiratne

Local companies that list in the CSE before December 31, 2021 will be granted a 50 percent tax exemption, Prime Minister and Finance Minister Mahinda Rajapaksa told parliament yesterday.

The Premier said, among other things, that capital gains taxes on Real Estate Investment Trusts will be lifted with the aim of motivating them. Foreigners and expatriates will be encouraged to buy apartments.

The Prime Minister presenting the 2021 annual budget said that up to Rs. 100,000 in investment relief, as a qualifying payment for investors in Treasury Bills and stocks, will be introduced.

Amid those developments the CSE became slightly active with the focus shifting to manufacturing sector companies yesterday after the sector witnessed some sluggishness on the previous day in the market, analysts said.

Therefore, both indices moved upwards. The All Share Price Index went up by 30.40 points and S and P SL20 up by 12.20 points. The turnover stood at Rs. 2.21 billion with a single crossing. The crossing was reported in Commercial Bank, which crossed 500,000 shares to the tune of Rs. 37.5 million with its shares trading at Rs. 75.

In the retail market top five contributors to the turnover were; Expolanka Rs. 481 million (17.7 million shares traded), Dipped Products Rs. 321 million (979,000 shares traded), CIC Rs. 113 million (821,000 shares traded), Haycarb Rs. 67.8 million (147,000 shares traded) and Tokyo Cement (Non Voting) Rs. 66.8 million (1.25 million shares traded). During the day 89.8 million share volumes changed hands in 20951 transactions. 

 The Sri Lanka rupee was stronger at 184.20/60 to the US dollar in the spot market on Tuesday while gilt yields were flat in dull market trade, dealers said. The rupee closed at 184.30/45 to the US dollar on Monday.