Sri Lanka's Inland Revenue Department has issued a notice announcing that the previous notices on the increase of the value added tax (VAT) rate to 15% effective 2 May 2016 ({News-2016-05-05/A/4- previous coverage}) have been suspended by a Supreme Court ruling issued in July. As a result, the VAT rate remains 11%.
Sri Lanka had replaced the 11% rate with a 12.5% rate and 8% rate effective 1 January 2016, but the rate changes were subsequently suspended and ultimately canceled in favor of a…