On 28 December 2023, Sri Lankaā€™s Inland Revenue Department (IRD) issued the Notice to VAT Registered Persons announcing the new VAT rate of 18% from 15%ā€”effective 1 January 2024. The notice also states that any advance payment made before 1 January 2024 for goods or services to be received on or after 1 January 2024 will be subject to the previous 15% VAT rate. However, the VAT rate for financial services will remain at 18% as usual.