Economy

Freelancers, individuals to pay 15% Dollar tax?

Published

1 year ago

February 25, 2025

The government’s 2025 budget outlines a 15 per cent services export tax for individuals in Sri Lanka who provide services to external parties and bring back foreign exchange, it was reported.

According to EconomyNext, the Head of Tax Services at BDO Sri Lanka, Sarah Afker said freelancers doing IT work for foreign parties and other professionals who provide services to foreign parties fall under this category.

Afker explained that the services export tax had been listed as a corporate tax in the budget, but Bills to amend the Inland Revenue Act published later indicate that the tax also applied to individuals.

She added that from 01 April 2025, that particular description, as well as any other foreign source income, will be liable for a 15 per cent tax.

Sarah Afker highlighted the following key factors linked to the tax;

The tax will apply if the money is brought back to Sri Lanka through the banking system. Up to now, such incomes were exempted, to encourage foreign exchange earnings.
Under changes proposed to the Inland Revenue Act on individual income tax, income up to 1.8 million rupees is exempt from tax. The next 500,000 is taxed at 6 per cent.
The earlier 12 per cent tax will be removed and the next 500,000 slab will be taxed at 18 per cent.
Foreign exchange earnings will be at 15 per cent, above the 6 per cent rate without an upper limit.
Corporates who export services are taxed only on profits after deducting expenses.
Individuals could also try to submit an income statement and charge expenses.

The tax specialist added that the services export tax has been included as the International Monetary Fund had proposed a 30 per cent tax, but the government had negotiated it down to 15 per cent.

Economy

Sri Lanka’s tourist arrivals exceed 840,000 so far this year

Published

15 hours ago

April 27, 2026

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The Sri Lanka Tourism Development Authority (SLTDA) stated that the number of tourist arrivals in Sri Lanka so far has crossed the 840,000 mark.

Accordingly, a total of 840,411 tourists have visited the country between January 1 and April 22, 2026.

The highest number of arrivals has been recorded from India, with 176,465 tourists, the SLTDA noted.

A significant number of visitors have also arrived from countries including the United Kingdom, Russia, Germany, and China.

Meanwhile, the SLTDA stated that a total of 99,777 tourists arrived in the country between April 1 and April 22, 2026.

However, the data indicate that daily tourist arrivals in April have declined significantly compared to previous months.

Economy

Haputale restaurant fined Rs. 1 million forover pricing bottled water

Published

1 day ago

April 27, 2026

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A restaurant in Haputale has been fined Rs. 1 million for selling a bottle of drinking water above the maximum retail price.

The fine was imposed by the Bandarawela Magistrate’s Court on April 24 following a raid conducted by the Consumer Affairs Authority Badulla District Office.

The raid targeted a restaurant owned by a private company on Welimada Road in Haputale. Authorities found that the establishment had sold bottled water at a price exceeding the approved limit.

The court subsequently imposed a fine of Rs. 1,000,000 on the hotel.

Economy

Sri Lanka to Launch First Digital Motor Insurance Card from May 1

Published

3 days ago

April 25, 2026

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Sri Lanka’s Ministry of Finance, Planning, and Economic Development has announced that the country’s first digital motor insurance card will be introduced from May 1.

The Ministry stated that this initiative represents a significant step toward advancing national digitalization while also enhancing public safety.

By replacing physical plastic cards, the move is also expected to contribute to environmental sustainability across the country.

The Ministry added that the digital motor insurance card will be officially launched in collaboration with the Insurance Regulatory Commission of Sri Lanka, the Insurance Association of Sri Lanka, and the Sri Lanka Police.