In Sri Lanka taxes are levied by various regulatory authorities by virtue of the powers vested in them. Here, we have set out an outline of the key taxes of the country. The list is not exhaustive and aims to be of general guidance only. Income Tax Income tax is charged on every person (residents and non-residents) on profits and income. Residents are charged on their global income while non-residents…
Taxation is an important economic tool for any government, but in Sri Lanka we have seen that the tax system is not earning the necessary revenue for the country. Ideally, as income increases, the corresponding tax revenues should also increase (though the rate of increase will decline over time). This, however, is not happening in Sri Lanka: for example, per capita income increased from $720 in 1995…
While the presidential and parliamentary elections in 2015 instigated a wait-and-see approach within Sri Lanka’s private sector, the outcome is expected to be positive in the longer term, bringing improved stability and a more encouraging environment for foreign investment. Under what has been described as a more liberal, open and business-oriented government, Sri Lanka is entering a period in w
This chapter explores the Sri Lankan tax framework, giving a breakdown of the various regulatory authorities, revenue collection systems, taxpayer services and other elements. It also contains a viewpoint from Sujeewa Rajapakse, Managing Partner, BDO Partners.…
