Sri Lanka Inland Revenue has published the Inland Revenue (Amendment) Act, No. 2 of 2025, which was certified on 20 March 2025 and is generally effective from 1 April 2025. Some of the key changes include:
- An increase in the tax-free allowance from LKR 100,000 to LKR 150,000 per month (LKR 1,800,000 per annum);
- The revision of the personal income tax bands (brackets), with an increase in the first band (6% rate) to LKR 1,000,000 per annum;
- An increase in the advance income tax (withholding …