COLOMBO, Oct. 22 -- Sri Lanka is set to unveil a competitive, transparent, and rules-based tax framework for large-scale investors following discussions with the International Monetary Fund (IMF), Board of Investment (BOI) Chairman Arjuna Herath announced.

The new policy, expected to be announced shortly, will apply to investment projects exceeding US$50 million, replacing the Strategic Development Project (SDP) Act concessions that previously granted tax holidays of up to 20 years. Those incentives were suspended earlier amid IMF concerns over non-transparent, negotiated tax deals that undermined fiscal discipline.

"In that context, we have worked actively with the IMF to get the new SDP project concessions in place," Herath said. "Pro...