Sri Lanka removes VAT zero-rating on fabric imports, scraps CESS levy
Sri Lanka's Inland Revenue Department has announced on 8 April 2026 major changes to the tax treatment of fabric imports, effective 1 April 2026, which will impact both importers and local suppliers in the textile sector. VAT rate increases to
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Sri Lanka: IRD revises VAT treatment on fabric imports, supplies
Sri Lankan Inland Revenue Department (IRD) has issued Notice PN/VAT/2026-04/1 on 08 April 2026 to all Value Added Tax (VAT) registered persons, providing clarification on the VAT treatment of fabric imports and supplies following recent Gazette
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Sri Lanka: IRD sets VAT deadlines, reinforces strict penalty regime
Sri Lankan Inland Revenue Department (IRD) has issued a formal reminder to taxpayers regarding Value Added Tax (VAT) obligations for the period ending 31 March 2026, reaffirming strict compliance requirements for payments, return submissions, and
See MoreSri Lanka: IRD issues final VAT reminder on financial services payments for March 2026
Sri Lankan Inland Revenue Department (IRD) has issued a final reminder to all relevant taxpayers regarding the payment of VAT on Financial Services (VAT on FS) for March 2026, with the due date set as 20 April 2026. Taxpayers are required to settle
See MoreSri Lanka: IRD postpones implementation of VAT on non-resident e-services
Sri Lankan Inland Revenue Department has issued SEC/PN/VAT/2026-02 on 31 March 2026, notifying taxpayers of a further delay in the implementation of Value Added Tax (VAT) on services supplied through electronic platforms by non-resident service
See MoreSri Lanka introduces new tax invoice format under VAT reform
Sri Lanka has rolled out a new standardised format for tax invoices as part of its ongoing Value Added Tax (VAT) modernisation efforts, with the changes now set to take effect from 1 April 2026. The new invoice requirements were officially
See MoreSri Lanka: IRD mandates employee TINs in APIT annual statements
Sri Lankan Inland Revenue Department (IRD) has announced that, starting from the Year of Assessment 2025/2026, all employers registered under the Advance Personal Income Tax (APIT) scheme must include each employee’s Taxpayer Identification Number
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Slovak Republic consults new tax treaty with Sri Lanka
The Slovak Republic has initiated public consultation for a proposed income tax treaty with Sri Lanka, with the deadline for feedback set at 31 March 2026. Once signed and ratified, this new agreement will replace the 1978 tax treaty between Sri
See MoreSri Lanka amends Inland Revenue raising capital gains tax, tightens compliance rules
Sri Lanka’s government has issued a Bill amending the Inland Revenue Act on 20 February 2026, marking substantive tax changes and compliance reforms. Published in the gazette on 24 February 2026, it introduces capital gains tax rate revisions and
See MoreSri Lanka: MOF introduces tax incentives for strategic development projects
Sri Lanka’s Ministry of Finance issued a Regulation under the Strategic Development Projects Act, No. 14 of 2008, published in Gazette No. 2474/66 on 8 February 2026, setting out the conditions for designating a project as a Strategic Development
See MoreSri Lanka: IRD reminds bookmakers to pay increased levy on January collections
Sri Lanka’s Inland Revenue Department (IRD) has issued a reminder to taxpayers carrying on the business of bookmakers and gaming to make the Levy payment on the gross collection for January 2026 on or before 7 February 2026. Under the current
See MoreSri Lanka: IRD announces AIT, WHT, APIT December 2025 deadlines
Sri Lankan Inland Revenue Department (IRD) has reminded taxpayers to pay Advance Income Tax (AIT), Withholding Tax (WHT) and Advance Personal Income Tax (APIT) withheld during December 2025 no later than 15 January 2026. Tax Types and Payment
See MoreSri Lanka: IRD revises betting and gaming levies from January 2026
The Inland Revenue Department (IRD) of Sri Lanka has announced updated levies for betting and gaming businesses following amendments to the Betting & Gaming Levy Act, No. 40 of 1988, under the Betting and Gaming Levy (Amendment) Act No. 25 of
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Sri Lanka: IRD postpones adoption of new VAT invoice format
The Inland Revenue Department (IRD) has announced, on 12 December 2025, that the effective date for the new VAT Tax Invoice format has been postponed. Following requests from numerous VAT registered persons, the Commissioner General of Inland
See MoreSri Lanka: Inland Revenue Department issues reminder for November AIT, WHT, APIT payments
Sri Lanka’s Inland Revenue Department issued a notice on 10 December 2025 for taxpayers to settle Advance Income Tax (AIT), Withholding Tax (WHT) and Advance Personal Income Tax (APIT) withheld in November 2025 by 15 December 2025. Taxpayers
See MoreSri Lanka: IRD further extends income tax deadline due to cyclone Ditwah
Sri Lanka’s Inland Revenue Department (IRD) has further extended the deadline for submitting Income Tax Returns for the 2024/2025 assessment year to 31 December 2025. The extension follows widespread disruption caused by Cyclone Ditwah, which made
See MoreSri Lanka: Cabinet approves signing of amending protocol to tax treaty with Luxembourg
The Sri Lankan Cabinet approved the signing of an amending protocol to the 2013 income and capital tax treaty with Luxembourg on 24 November 2025. The new agreement aims to align with the latest international standards and implement
See MoreSri Lanka continues Committee Stage Debate on 2026 Budget
Sri Lanka’s Parliament progressed through the Committee Stage Debate of the 2026 Budget this week, with the 10th and 11th days of the 17-day proceedings addressing several key ministry allocations under the Appropriation Bill. On 26 November
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