Category: Budget
Sri Lanka’s Budget Sticks to Fiscal Consolidation Path: Fitch Ratings
The Sri Lankan government’s latest budget indicates that the authorities remain committed to reducing government debt/GDP over the medium term after beating their targets in the 2025 budget. Fitch Ratings believes sustained strong revenue performance will remain key to meeting the government’s fiscal goals. The budget, unveiled on 7 November, targets a deficit of 5.1% […]
Ceylon Chamber Says Budget 2026 Calls for Faster Implementation of Reforms to Achieve Growth Targets
The National Budget 2026 maintains a clear trajectory of policy predictability, fiscal consolidation, and disciplined debt management, continuing the stability required for Sri Lanka’s medium-term reform agenda. This consistency is critical for sustaining a transformative growth trajectory that is underpinned by low inflation, stable interest rates and renewed investor confidence. With economic recovery driven primarily […]
Budget 2026: Reduction of registration threshold of VAT & SSCL
With the view of broadening the tax base, the Finance Minister proposes to reduce the annual turnover threshold for the registration from Rs. 60 million to Rs. 36 million Value Added Tax and Social Security Contribution Levy effective from April 01, 2026.
Budget 2026: Imposition of VAT & SSCL on Imported Coconut Oil & Palm Oil
Locally produced coconut oil and palm oil are subjected to Value Added Tax and Social Security Contribution Levy, while imported coconut oil and palm oil are subjected to Special Commodity Levy at Rs. 150 per kilogram and Rs. 275 per kilogram, respectively. To ensure a level playing field, it is proposed to remove the Special […]
Budget 2026: Removal of CESS and imposition of VAT on Imported Fabric
Locally manufactured fabric is subjected to VAT and the imported fabric, although exempted from VAT, is subjected CESS of Rs. 100 per kilo gram. To ensure a level playing field, it is proposed to remove CESS and impose VAT on the imported fabric. This will be implemented effective from April 01, 2026.
Budget 2026: Implementation of the National Tariff Policy
The President proposes to revise the current Customs Import Duty rates of 0%, 15%, 20%, in line with the National Tariff Policy, to 0%, 10%, 20%, 30%, effective from April 2026. Also, with the aim of boosting economic growth by increasing the competitiveness of external trade, the government expects the gradual phase out of para-tariffs […]
Budget 2026: Imposition of Social Security Contribution Levy on Vehicles
It is observed that the social security contribution levy on the sale of vehicles is not being collected properly. Therefore, the social security contribution levy is proposed to be charged at the time of import or manufacture and sale of vehicles, and exempt this tax at the time of after-sales. This is expected to be […]
Summary of the Budget Estimates 2026
Due to the revisions to the revenue estimates expected through the budget proposals, the borrowing limit in the Appropriation Bill presented to this Parliament on 26.09.2025 should be revised by reducing it by Rs. 60 billion to Rs. 3,740 billion. This revision is presented in Annex Il of this Budget Speech.
CA Sri Lanka submits comprehensive National Budget 2026 proposals
In a significant move underscoring its commitment to national fiscal stability and economic growth, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) formally presented its strategic proposals for the forthcoming National Budget 2026 to the Government. The proposal was made to Dr Harshana Suriyapperuma, Secretary to the Ministry of Finance, further solidifying […]