Budget Proposals 2018 Budget with PwC 2018 Building relationships, Creating value $ $ $ $ $ Budget Proposals – 2018 10th November 2017 To Clients of PricewaterhouseCoopers Dear Client We are pleased to forward you a Summary and Analysis of the Budget Proposals for 2018, presented in the Parliament on 9th November 2017, by Hon Mangala Samaraweera, Minister of Finance and Media. We are also forwarding – • “Tax facts at a Glance”, together with a “Tax Calendar”, • Booklet on “Tax Update” If you would like further information on any of the taxation changes and other measures announced in the Budget, please do not hesitate to get in touch with us. Yours truly Hiranthi Ratnayake Director – Tax Services For and on behalf of PricewaterhouseCoopers (Private) Ltd PricewaterhouseCoopers (Private) Ltd., P. O. Box 918, 100 Braybrooke Place, Colombo 2, Sri Lanka T: +94 (11) 771 9838, 471 9838, F: +94 (11) 230 3197, www.pwc.com/lk Company Number: PV 3498 PricewaterhouseCoopers (Private) Ltd., is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. Who we are PwC is a network of firms in 158 countries with more than 236,000 people who are committed to delivering quality in assurance, advisory and tax services. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. PwC Sri Lanka PwC Sri Lanka operates from its principle office in Colombo, the commercial capital of Sri Lanka and also overlooks the operations in Malé, the capital of the Republic of Maldives. With over 400 people and 19 Partners and Directors, we act as advisers to private sector enterprises and government on Assurance, Finance and Tax Advisory mandates, Technology Advisory. PwC refers to the Sri Lanka member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Our Offices Partners & Directors Sri Lanka Sujeewa Mudalige Chief Executive Officer Channa Manoharan Advisory Leader 100 Braybrooke Place, Lasanga Abeysuriya Executive Director - Corporate Finance & Strategic Consulting Colombo 02 T: (+94) 11 771 9700 Thivanka Jayasinghe Partner - Audit and Assurance Services F: (+94) 11 230 3197 Shamura Hadgie Partner - Audit and Assurance Services E: [email protected] Sriyani Perera Partner - Audit and Assurance Services W: www.pwc.com/lk Gajendran Gajendran Partner - Audit and Assurance Services Republic of Maldives Nishan Mendis Executive Director Charmaine Tillekeratne Director - Tax Services H. Thandiraiymaage, Vajira Lakdeva Director - Audit and Assurance Services 3rd Floor Roshanee Magu, Malé Madhura De Silva Director - Consulting Finance T: (+960) 331 8342 F: (+960) 331 4601 Shakila Perera Director - Risk, Quality and Independence Shiran Priyajanaka Director - Audit and Assurance Services Tamara Paktsun Director - Finance and Operations Hiranthi Ratnayake Director - Tax Services Ruvini Fernando Director - PPP Advisory & Deals Strategy Jatindra Bhattray Resident Director - Audit and Assurance Services Male Group Aruna Perera Director - Corporate Finance and Valuation Priyana Gunesekera Director - Audit and Assurance Services Your Team @ PwC Tharanga Amarasena Associate Director - Tax Services Sandun Cooray Senior Manager - Audit and Assurance Kavinda Weerakoon Associate Director - Mergers and Services Acquisitions Nuwan Kularathne Senior Manager - Audit and Assurance Zahra Cader Associate Director - Consulting IDA Services Subhashini Munasinghe Associate Director - Audit and Assurance Yamuna Amaraperuma Senior Manager - Tax Services Services Lalith Peiris Financial Management Specialist - Dinendra Dasanayake Associate Director - Audit and Assurance Finance and Operations Services Thilanka Gajasinghe Head of Sales - Technology Consulting & Nivanthi Aluthwala Associate Director - Audit and Assurance Solutions Services Mohan Chathuranga Manager - Consulting - Technology Malinda Boyagoda Associate Director - Audit and Assurance Dion Saverimuttu Manager - Audit and Assurance Services Services Mahanama Munasighe Manager - Risk, Quality and Amila Perera Associate Director - Consulting - Independence Technology Nivedha Balasunderam Manager - Consulting IDA Ashinie Perera Associate Director - Consulting - Narmada Pathirana Manager - Human Capital Technology Sachintha Bandara Manager - Audit and Assurance Services Rishini Manatunga Associate Director - Tax Services Bilal Mansoor Manager - Tax Services Dinushini Keppetigoda Head of Finance - Finance and Operations Nuwan Dishan Manager - PwC’s Academy Dulip Chandana Senior Manager - Audit and Assurance Gayathri Thiyagarajah Manager - Audit and Assurance Services Services Tharasi Gunawardene Manager - Tax Services Revonne Musafer Senior Manager - Audit and Assurance Nissanka Perera Manager - Tax Services Services Surangi Arawwawala Manager - Tax Services Nanda Nandakumar Senior Manager - Audit and Assurance Asanka Wasalathilaka Manager - Consulting Finance Services Shashila Tharangi Manager - Tax Services Thusith Silva Senior Manager - Audit and Assurance Shamendra Perera Manager - Audit and Assurance Services Services Lasanthi De Silva Manager - Risk, Quality and Independence Vengadasalam Balagobi Senior Manager - Consulting - Technology Tharaka Peiris Manager - Audit and Assurance Services Gayan Dissanayake Senior Manager - Audit and Assurance Amindra De Silva Manager - Consulting - Technology Services Manjula Kuruppu Manager - Consulting - Technology Pushpa Panapitiya Senior Manager - Risk, Quality and Thilak Arambewale Manager - Finance and Operations Independence Rizny Faisal Manager - Mergers and Acqusitions Janaka Silva Senior Manager - Global Technology Solutions Audit and Assurance Tax Finance and Accounting Outsourcing Services Tax Services Financial Assurance/ Statutory Audit International Tax Structuring Financial Accounting Mergers and Acquisitions Non-Financial Performance and Reporting Transfer Pricing Regulatory Compliance Compliance Services Risk Assurance Indirect Tax Internal Audit Employment Taxes IFRS Readiness and Conversions International Assignment Solutions Controls Assurance Assurance on Capital Market Transactions Hiranthi C Ratnayake T: (+94) 11 771 9700Ext: 4301 | E: [email protected] Charmaine Tillekeratne Sujeewa Mudalige T: (+94) 11 771 9700Ext: 4201 | E: [email protected] T: (+94) 11 771 9700 Ext: 5001 | E: [email protected] Deals Mergers & Acquisitions Corporate Finance & Strategy Consulting Buy-side due diligence Business and intangible asset (brands, agreements etc) Sell-side (vendor) due diligence value assessment Vendor assistance Financial feasibility assessment Advice on fundraising Business plan development and review Bid support services Financial modeling and decision support services including option evaluation Deal origination Strategy formulation and review Investment structuring services Corporate operational and financial performance reviews Sale and purchase agreement (SPA) services Corporate restructuring Commercial and market due diligence Capital raising IPO readiness assessments Capital Projects & Infrastructure advisory Post deal integrations services Market and economic studies Sujeewa Mudalige T: (+94) 11 771 9700 Ext: 5001 | E: [email protected] Lasanga Abeysuriya Channa Manoharan T: (+94) 11 771 9700 Ext: 5004 | E: [email protected] T: (+94) 11 771 9700 Ext: 5002 | E: [email protected] Aruna Perera Kavinda Weerakoon T: (+94) 11 771 9700 Ext: 5409 | E: [email protected] T: (+94) 11 771 9700 Ext: 5311 | E: [email protected] Consulting Digital Services ∆ Finance Function Effectiveness ∆ People and Change Bespoke Software Design, Development and Implementation Software Product Customisations and Deployment Finance Transformation Change Management/ Website Design and Development Corporate Performance Management Communication Business Process Re-engineering Review of Internal Controls/ Procedures Capability Building IT Project Management Finance Shared Services Organisational Change Management Consultancy F&A Procedures Processes IT Procurement Process Management Consultancy Preparation of Procedure Manuals IT Procurement Technical Evaluations Outsourced Services Agri Culture Consulting Nishan Mendis T: (+94) 11 771 9700 Ext: 5101 | E: [email protected] ∆ Operations ∆ Governance Risk and Compliance Business Process Re-engineering Institutional Development Business Performance Donor Oversight Management Information SME Advisory Monitoring and Evaluation Survey and Research Public Enterprise Reform Public Finance/ Financial Management Project Management Services Sustainability and Climate Change Nishan Mendis T: (+94) 11 771 9700 Ext: 1001 | E: [email protected] Madura De Silva T: (+94) 11 771 9700 Ext: 5201 | E: [email protected] 2018 with PwC IT Security Enterprise Consultancy Application Controls / Functionality Reviews ∆ Systems Post Implementation Reviews Post Implementation Review (PIR) IT Security Audits and Assessments ERP Implementation Vulnerability Assessment and Penetration Testing ERP Maintenance Network Architecture reviews Project Implementation Assurance (PIA) Information Security Diagnostic Reviews IT incident investigation reviews ∆ Process Business Continuity Management Process Re-engineering Information Security Policies & Procedures Standard Operating ISO 27001 implementations / Readiness reviews Procedure Information Security Risk Management Business Cases for IT Governance and Strategy Automation Privacy