Press briefing of Cabinet Decision taken on 2017-02-07

Framework Agreement on the Tax and Customs Regime Applicable by the Partner Country to Projects Funded by the General Budget of the European Union

- The European Union (EU) has so far extended over US$220 Million worth of grants to the Government of Sri Lanka and in addition, a large amount of grants as humanitarian assistance. The EU has agreed to provide Euro210 Million (approximately Rs.34 billion) for the period of 2014 to 2020 and of the amount, Euro72 Million has already been set apart for 03 projects. According to the EU Guidelines its grants cannot be utilized to pay customs duties, taxes and other fiscal levies imposed by the recipient Government. Accordingly, the proposal made by Hon. Ranil Wickremasinghe, the Prime Minister in his capacity as the National Policies and Economic Affairs, to enter into a Framework Agreement with the EU on the Tax and Customs Regime applicable to Sri Lanka for the projects funded by the General Budget to the EU, was approved by the Cabinet.