Sri Lanka enacts three key amendment laws on taxes and strategic development

The Speaker of the Sri Lankan Parliament, Dr. Jagath Wickramaratne, announced today (December 18) that he endorsed certificates on December 17, 2025, for three key Amendment Bills, namely the Social Security Contribution Levy, the Betting and Gaming Levy, and Strategic Development Projects, bringing them into law.

The Speaker informed the House that the endorsed Bills are the Social Security Contribution Levy (Amendment) Bill, the Betting and Gaming Levy (Amendment) Bill, and the Strategic Development Projects (Amendment) Bill.

The Social Security Contribution Levy (Amendment) Bill was introduced to amend the Social Security Contribution Levy Act, No. 25 of 2022. It was presented to Parliament on October 9, 2025, and was passed on December 5, 2025.

The Betting and Gaming Levy (Amendment) Bill, which was also passed on December 5, 2025, amends Section 2 of the main law. The amendments limit the ten per cent gross collection levy to the period from April 1, 2023, to October 1, 2025. From October 1, 2025, the gross collection levy on bookmakers and gambling businesses is increased to eighteen per cent. In addition, the casino entrance levy for Sri Lankan citizens has been increased to 100 United States Dollars.

The Strategic Development Projects (Amendment) Bill was presented to Parliament on November 14, 2025, and passed on December 5, 2025, to amend the Strategic Development Projects Act, No. 14 of 2008. The amendments reduce the maximum tax holiday period from 25 years to 10 years. They also introduce a new process where the Board of Investment (BOI) must identify projects and refer them to the Ministry of Finance for a mandatory cost-benefit analysis before granting any tax holiday or concession.

The amendments further require stronger monitoring after approval, giving the BOI authority to impose penalties or restrict or cancel concessions if project targets are not met. Filing of tax returns has been made compulsory, and the Ministry of Finance is required to publish an annual report on tax expenditures related to strategic development projects.

Following the Speaker’s endorsement, the three Bills will come into force as the Social Security Contribution Levy (Amendment) Act, No. 24 of 2025, the Betting and Gaming Levy (Amendment) Act, No. 25 of 2025, and the Strategic Development Projects (Amendment) Act, No. 26 of 2025.