Sri Lanka: Increase of VAT to 18% to boost revenue and meet IMF targets
In an effort to bolster revenue and align with International Monetary Fund (IMF) program goals, Sri Lanka’s cabinet of ministers has given the green light to raise the value-added tax (VAT) rate from its current 15% to 18%. Additionally, VAT exemptions on certain goods will be eliminated starting in January.
Furthermore, the cabinet has approved a proposal to revise power tariffs on a quarterly basis, transitioning from the current six-month schedule. A bill for a new Employment Act is also in the works following cabinet approval.
