Colombo Municipal Council cuts Entertainment Tax on local concerts

The Colombo Municipal Council has reduced the Entertainment Tax on local concerts from 12% to 7%, while lower rates have also been introduced across all entertainment tax categories.

Colombo Mayor Vraie Cally Balthazaar announced the change in a Facebook post today (July 16), stating that the relevant proposal has been approved and the Gazette notification has been issued.

The tax reduction was approved through the Colombo Municipal Council’s 2026 Budget.

The Mayor said one of the requests received when the new Council took office was from the Governor, who asked it to create more opportunities for people in Colombo to enjoy entertainment, culture and sport.

Following this request, the Council considered measures it could take to make such activities more accessible to the public.

According to the Mayor, reducing the tax on local concerts is expected to provide greater support to Sri Lankan artists and the local creative industry.

She also requested event organisers to pass the benefit of the tax reduction on to the public by lowering ticket prices wherever possible. This would make concerts and other entertainment events more affordable for a wider group of people.

The Mayor said a vibrant city is created not only through roads and buildings, but also through music, theatre, sport and shared experiences that bring people together.

She expressed hope that the tax reduction would help make Colombo a city where more people can take part in and enjoy entertainment, cultural and sporting activities.