The President of Sri Lanka announced a series of tax reform measures on 18 December 2024. The main measures include:
- An increase in the tax-free allowance from LKR 100,000 to LKR 150,000 per month, along with an increase in the first band (6% rate) to LKR 1,000,000 per annum;
- An increase in the withholding tax rate on interest from 5% to 10%, with an exemption for individuals earnings up to LKR 150,000 per month;
- The removal of the tax exemption for income from export services, with such inc…