Budget Proposal

On 12 November 2026, the Minister of Finance, Planning and Economic Development presented the 2027 Budget to Parliament. The tax measures are modest in number but touch most taxpayers: a higher tax-free threshold, a new capital allowance for BOI investors, a wider Capital Gains Tax base, and a long list of VAT and levy changes….

The 2026 Budget introduces a series of revenue proposals aimed at broadening the tax base, creating a level playing field between local and imported products, and modernising Sri Lanka’s tax administration. This article summarises the main tax-related proposals and explains their practical impact on businesses and taxpayers. 1. VAT & SSCL on Imported Coconut Oil…