Capital Gains Tax Changes — Sri Lanka Budget 2027

Deep-dive on the Capital Gains Tax measures in Sri Lanka Budget 2027 — the rate, the exemptions, the section 203(4) transitional rule, and the 30-day filing deadline. Updated within the hour of the Budget speech.

What changedAwaiting speech

TODO: Short list of specific CGT measures. One bullet per measure, with effective date.

New rateAwaiting speech

TODO: Confirm the new CGT rate for individuals and partnerships (and for corporates if a separate rate applies). State the effective date.

Changes to exemptionsAwaiting speech

TODO: Confirm whether the principal residence exemption, the Rs 50,000 small-gains exemption, and the Rs 600,000 total gains cap remain. Any new exemption added? Any existing exemption removed?

Transitional rule for pre-2017 assetsAwaiting speech

TODO: Confirm whether section 203(4) (market value as at 30 September 2017 for pre-2017 assets) remains, is replaced, or is updated with a new valuation date.

Worked exampleAwaiting speech

TODO: Land sale example at Rs 20,000,000 sale, Rs 10,000,000 cost, with CGT under the new rate. Compare to CGT under the previous (15%) rate for a before-and-after number.

When this takes effectAwaiting speech

TODO: Exact effective date. Any disposals in progress — which rate applies?

More on this topic

• Sri Lanka Budget 2027 — Tax Changes (Live hub)
• Capital Gains Tax on land sales in Sri Lanka (current rules)
• Personal Income Tax changes in Sri Lanka Budget 2027

Disclaimer: CGT measures announced in Sri Lanka Budget 2027 are subject to amendment of the Inland Revenue Act and come into force only when the related Bill is passed. Specific CGT treatment depends on the facts of the disposal. Obtain professional advice before signing a sale deed.