Sri Lanka to forego Rs.28.4bn in next year on income tax, CESS, VAT revisions

ECONOMYNEXT – Sri Lanka will see a loss of Rs. 28.4 billion in its revenue next year due to revisions in income tax, Port and Airports Development Levy (PAL), Value Added Tax (VAT), and removal of CESS, the 2027 budget document showed.

The government will lose Rs. 16 billion from new tax structure that will see a rise in tax free income, Rs. 10 billion due to removal of CESS, and Rs. 2.98 billion from the revision of VAT.

The government will also lose Rs. 350 million from the revision in PAL and Rs. 40 million from abolition of Tourism Development Levy.

It will only see a gain of Rs.950 million from the revision in Special Commodity Levy. (Colombo/November 12/2026)