Tax in Sri Lanka: VAT, company tax, capital gains
18%
Sri Lanka charges 18% VAT on most goods and services. The rate is verified against Inland Revenue Department (IRD), Sri Lanka on 19 August 2026; the headline company tax rate is 30% (OECD Corporate Tax Statistics).
VAT in Sri Lanka
Value-added: VAT is charged on sales and reclaimed on purchases, so only the added value is taxed.
- Standard rate
- 18%
- Local name
- VAT — Value Added Tax
- Type
- VAT
- Reduced rates
- None on record
- Filing
- Quarterly / Monthly / Annual
- Authority
- Inland Revenue Department (IRD), Sri Lanka
- Current rate since
- 1 January 2024
Company tax in Sri Lanka
The headline corporate income tax rate is 30%. In effect since 1 January 2026.
Indicative only: confirm with Sri Lanka's national tax authority. OECD 2026: central statutory CIT 30%, combined (central+sub-central) 30%
Capital gains tax in Sri Lanka
- Shares
- Capital Gains Tax 15% for individuals (from 3 June 2026; previously 10%). Quoted shares listed on the Colombo Stock Exchange are excluded investment assets (not subject to CGT)
- Property
- 15% CGT for individuals (from 3 June 2026; previously 10%)
- Holding period
- none found
Ask your AI assistant about tax in Sri Lanka
The figures on this page are callable by any MCP-compatible assistant through the free Tax MCP. Add https://taxmcp.ai2fin.com as a custom connector in Claude, ChatGPT, Cursor or your own agent — no login, no API key — then ask:
- “What is the VAT rate in Sri Lanka, and what is the source?”
- “Add 18% VAT to a net amount of LKR 1,000.”
- “What is the company tax rate in Sri Lanka and how is it sourced?”
Connect in three steps, and what a connected answer looks like: Tax MCP.
Sri Lanka, answered
Questions about tax in Sri Lanka
- What is the VAT rate in Sri Lanka?
- The standard VAT (Value Added Tax) rate in Sri Lanka is 18%, verified against Inland Revenue Department (IRD), Sri Lanka on 19 August 2026. Value-added: VAT is charged on sales and reclaimed on purchases, so only the added value is taxed.
- What is the company tax rate in Sri Lanka?
- The headline corporate income tax rate in Sri Lanka is 30%, as published by OECD Corporate Tax Statistics (checked 6 October 2026, verification pending). Indicative only: confirm with Sri Lanka's national tax authority. OECD 2026: central statutory CIT 30%, combined (central+sub-central) 30%
- How is capital gains tax charged in Sri Lanka?
- In Sri Lanka, gains are taxed at their own rate, separate from income, verified against Inland Revenue Department Sri Lanka - Notice SEC/PN/IT/2026/02 (8 June 2026) on 6 October 2026. On shares: Capital Gains Tax 15% for individuals (from 3 June 2026; previously 10%). Quoted shares listed on the Colombo Stock Exchange are excluded investment assets (not subject to CGT) Holding period: none found
- Can an AI assistant look up tax rates for Sri Lanka?
- Yes. The free Tax MCP at https://taxmcp.ai2fin.com gives Claude, ChatGPT, Cursor or any MCP-compatible agent the same sourced figures as this page: the VAT rate, the company tax rate, the capital gains rule and a side-by-side comparison with other countries, each answer citing the authority and the date it was checked. Add the endpoint as a custom connector; there is no login or API key.
- How current is the Sri Lanka tax information on this page?
- Every figure on this page carries the date it was last checked against its source; the most recent check is 6 October 2026. The consumption-tax rate comes from a maintained rate ledger cross-checked against Inland Revenue Department (IRD), Sri Lanka, and each income, company and capital-gains figure has its own source and date. A figure that has not yet been verified against a linked official source says so instead of claiming a tick. General information computed from published government rates, not tax advice. Check the linked authority or a registered adviser before relying on a figure.
Sources
- Inland Revenue Department (IRD), Sri Lanka
- OECD Corporate Tax Statistics
- Inland Revenue Department Sri Lanka - Notice SEC/PN/IT/2026/02 (8 June 2026)
Last checked 6 October 2026. General information computed from published government rates, not tax advice. Check the linked authority or a registered adviser before relying on a figure.
See every rate side by side in the tax rates table, put Sri Lanka next to another country in the comparison tool, or read the tax facts.
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