The Inland Revenue Department (IRD) has issued a formal notice, SEC/PN/SSCL/2026-01, dated January 16, 2026, highlighting critical changes to the Social Security Contribution Levy (SSCL) framework. These changes stem from the Social Security Contribution Levy (Amendment) Act, No. 24 of 2025, which was officially certified on December 17, 2025.
The amendment focuses on expanding exemptions for the energy, transport, and financial sectors to streamline the tax burden on essential services.
Major Exemptions and Effective Dates
The Amendment Act introduces specific relief for several industries, with varying effective dates:
- Fuel Sector (Wholesale & Retail): The sale of petrol, diesel, and kerosene is now exempt from SSCL. This provision is retroactive and is deemed to have come into operation on July 1, 2025.
- International Transportation: Services provided by container terminal operators specifically related to international transportation are now exempt. This exemption is effective from the Act’s certification date, December 17, 2025.
- Financial Services: SSCL no longer applies to financial services provided by institutions that are already liable to Value Added Tax (VAT) at the rate of 20.5% under the VAT Act. This change also took effect on December 17, 2025.
Restricted Exemption for Electricity Generation
The Act also amends the exemptions previously granted to the electricity sector:
- Exemptions for machinery or equipment imported or purchased for electricity generation are now limited to those who entered into agreements with the Ceylon Electricity Board (CEB) prior to February 18, 2025. This specific restriction is deemed effective from February 18, 2025.
Quick Reference: Amendment Summary
| Industry/Activity | Nature of Change | Effective Date |
| Fuel (Petrol, Diesel, Kerosene) | Full exemption on wholesale and retail sale. | July 1, 2025 |
| Logistics (Container Terminals) | Exemption for international transport services. | Dec 17, 2025 |
| Financial Services | Exemption if liable to 20.5% VAT. | Dec 17, 2025 |
| Electricity Generation | Exemption restricted to CEB agreements made before Feb 18, 2025. | Feb 18, 2025 |
Stay ahead of Sri Lanka’s changing tax landscape with Lanka Tax Club.
Contact us for more details and assistant on your tax matters via info@lankataxclub.lk