Duty waiver to boost motor sports
Chinthana WASALA
The governing body for motor sports in Sri Lanka, Sri Lanka
Automobile Sports (SLAS) thanked the government for granting an
exemption of duty on racing cars.
This duty waiver is for purpose built single seater Formula Cars and
Go Karts, classified as motor cars, eventhough thee cars cannot be
registered nor driven on roads.
A Go Cart event in progress |
SLAS said it appreciates President Mahinda Rajapaksa and Sports
Minister Mahindanada Aluthgamage's keen interest in motor racing which
is regarded as an expensive sport, but a crowd puller.
“In the recent past, we have had several drivers graduating from the
Speedrome at Battaramulla which is the stepping stone from which they
embark into competitive motor racing and the need to purchase affordable
racing cars was a long felt need. There is an abundance of talent but
due to the lack of affordable racing cars, the progress was slow. All
Formula One drivers began their racing careed in Go Carts and Karting
can easily be called the cradle of motor sports,” the SLAS President
Pradeep Kavikara said.
President Mahinda Rajapaksa in his budget speech said foreign income
from sports activities is estimated to be around US $ 50 million a year
and is expected to be raised to US $ 500 million by 2016.
The budget proposal also states that a restriction on deducting 25
percent of advertising expenses will not apply to sponsorship of
international sports events approved by the Sports Ministry. The
concession will be applicable from August 1, 2012. Providing hotel
accommodation to any sportsman, organiser of any sports event or sponsor
arriving in Sri Lanka to participate in any sport event or activity in
connection with sport will be exempt from VAT.
Sri Lanka is targeting to make some of the country's motor racing
events recognised by international bodies similar to Singapore F1, Macau
GP, Monte Carlo etc. which will create a complete festival, benefiting
the national economy by attracting foreign investment and tourists.
SLAS aims to take this sport to provincial level and also an
Indo-Lanka Championship where Lankan drivers will be given more
international exposure. More international events will also be
conducted, attracting a large crowd. An international Go Cart track will
also be opened in Piliyandala in the near future. |