evidence: C. Design, mamgemoit, and evaluation of tax expenditures86 199. Sri Lanka has made commendable progress in unifying the tax treatment of most companies. Until 2022, the tax system was fragmented by a multiplicity of sectoral exemptions and reduced rates that applied to different activities. These differences likely contributed to a misallocation of resources, as capital and labor was attracted to sectors and activities with low taxation rather than with high productivity. With effect from April 2023, most companies are subject to a 30 percent corporate income tax. Moreover, incentives granted under the Board of Investment (BoI) Act have been restricted to import tariff exemptions since 2016 and companies that still benefit from tax exemptions have recently been published on a government website to increase transparency.87 To address governance and fiscal leakage concerns, the modernised IRA, which took effect in 2018, included a provision stating that tax exemptions provided under any other laws or agreements after the commencement of the new IRA would have no legal effect if not specifically provided for by the IRA (see subsection 9(2) of the IRA).