Sri Lanka Speaker certifies new VAT and mediation laws
Speaker Dr. Jagath Wickramaratne
Sri Lanka’s Speaker Dr. Jagath Wickramaratne has certified two new laws on VAT changes and mediation of civil and commercial disputes.
The certificates were endorsed yesterday (June 30) for the Bill to amend the Value Added Tax Act No. 14 of 2002 and the Mediation (Civil and Commercial Disputes) Bill.
The Bill to amend the Value Added Tax Act was presented to Parliament for the first reading on May 19, 2026. It was passed in Parliament with amendments on June 23, 2026.
The objective of the Bill is to modernize Sri Lanka’s national tax framework, covering both traditional financial sectors and the fast-growing digital economy.
The new provisions include the registration of non-resident digital service providers, a new method for levying taxes, and the mandatory use of point-of-sale machines to improve transparency.
The Act also seeks to improve tax compliance and fiscal integrity by strengthening existing penalties against tax evasion and the fraudulent obtaining of tax benefits.
Meanwhile, the Mediation (Civil and Commercial Disputes) Bill was presented to Parliament for the first reading on July 11, 2025 by the Minister of Justice and National Integration.
It was passed in Parliament without amendments on June 11, 2026.
This Act provides for the mediation of civil and commercial disputes. It also repeals the Commercial Mediation Centre of Sri Lanka Act No. 44 of 2000 and makes provisions for related matters.
Accordingly, the two Bills have now come into force as the Value Added Tax (Amendment) Act No. 14 of 2026 and the Mediation (Civil and Commercial Disputes) Act No. 13 of 2026.
