Economy

Freelancers, individuals to pay 15% Dollar tax?

Published

9 months 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

Tourist arrivals pass 2.1m for the first time in 2025

Published

1 day ago

December 5, 2025

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A total of 212,906 tourists have arrived in the country in the month of November, data from the Sri Lanka Tourism Development Authority (SLTDA) shows.

According to data released by the SLTDA, a total of 51,391 tourists have arrived from India which accounts to 24.1%. Furthermore, 24,953 persons from Russia, 16,915 from the United Kingdom, 14,518 from Germany and 9,384 Australian nationals have also visited Sri Lanka in the month of November.

Meanwhile, the number of tourists arrived in Sri Lanka in 2025 has increased to 2,103,593 with the release of the latest figures for November.

Among them, 474,796 individuals are from India, 191,742 from the UK, 158,593 from Russia, 131,259 from Germany, 121,671 from China and 101,771 are from France, the SLTDA noted.

Economy

Apple to support relief efforts in flood-hit Sri Lanka

Published

3 days ago

December 3, 2025

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Apple CEO Tim Cook has announced that the company will contribute to relief and rebuilding efforts across several Asian countries—including Sri Lanka—following days of severe flooding, landslides, and powerful winds.

Cook said that recent storms across Thailand, Indonesia, Malaysia, and Sri Lanka have devastated communities, extending the company’s condolences to all those affected.

Economy

Management Committee appointed for ‘Rebuilding Sri Lanka’ Fund

Published

4 days ago

December 1, 2025

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The Cabinet of Ministers has approved the establishment of the ‘Rebuilding Sri Lanka’ Fund, which aims to rebuild the country after the immense damage caused by Cyclone ‘Ditwa’, one of the worst natural disasters in Sri Lanka’s recent history.

The fund is to be established as a statutory fund under the Presidential Secretariat, and its Management Committee will comprise representatives from the government and private sectors.

Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayantha Fernando, will serve as its Chairman, while Senior Additional Secretary to the President, G.M.R.D. Aponso will serve as the Convener of the Committee.

Other committee members include:

• President’s Special Envoy for Foreign Investment, Western Province Governor Hanif Yusoof
• Secretary to the Ministry of Finance, Dr. Harshana Suriyapperuma
• Senior Economic Advisor to the President, Duminda Hulangamuwa
• Director General of the Ministry of Foreign Affairs Sugeeshwara Gunawardena
• Chairman of the Hayles Group, Mohan Pandithage
• Chairman of John Keells Holdings (JKH), Krishan Balendra
• Deputy Chairman and Managing Director of Aitken Spence PLC, Dr. Parakrama Dissanayake
• Brandix Group CEO Ashroff Omar
• LOLC Executive Chairman Ishara Nanayakkara