Sri Lanka to increase VAT to 18%

Tax in Sri Lanka

Sri Lanka to increase Value-Added Tax (VAT) from 15 percent to 18 percent effective from January 01, 2024.

Addressing the Cabinet press briefing today (October 31), Minister Bandula Gunawardena said, Cabinet approval has been granted in this regard.

He said even though tax income has risen over 50 percent in the first nine months of 2023 compared to 2022, such income has not yet reached the targets set by the International Monetary Fund (IMF).