Personal Income Tax Changes — Sri Lanka Budget 2027

Sri Lanka Budget 2027 is scheduled to be presented on 12 November 2026. This article is a deep-dive on the personal income tax measures in the Budget — the rate bands, the personal relief, the employment-income relief, the APIT (PAYE) table, and the effective date. We publish the first confirmed changes within an hour of the speech, and update as the Inland Revenue Department circulars are released.

What changedAwaiting speech

TODO: Replace with a short list of the specific personal income tax measures announced in Budget 2027. Keep it to the point — just the measure and the effective date.

The new rate bandsAwaiting speech

TODO: Insert the new personal income tax rate table. Columns: taxable band (LKR), rate (%). Keep the columns right-aligned.

What happens to reliefsAwaiting speech

TODO: Confirm whether the Rs 1,800,000 personal relief and the Rs 1,200,000 employment-income relief change. If yes, insert the new figure and effective date.

Impact on APIT / PAYEAwaiting speech

TODO: Confirm whether a new APIT table is published, and the effective pay-month from which employers must deduct at the new rates. Add an employer action checklist.

Worked exampleAwaiting speech

TODO: Pick a representative salary (e.g. Rs 300,000 / month, Rs 600,000 / month, Rs 1,000,000 / month) and show the annual tax under YA 2025/26 rules vs. the new Budget 2027 rules. Show rupee saving / cost.

When this takes effectAwaiting speech

TODO: Confirm the exact effective date. Flag whether the measure requires amendment of the Inland Revenue Act, and whether there is an interim transitional rule.

More on this topic

• Sri Lanka Budget 2027 — Tax Changes (Live hub)
• VAT changes in Sri Lanka Budget 2027
• Withholding Tax changes in Sri Lanka Budget 2027
• Sri Lanka personal income tax 2025-26 (current rules)
• Sri Lanka personal tax deadlines 2025/26

Disclaimer: Personal income tax 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. Individual tax treatment depends on the facts of the case. Obtain professional advice before acting on anything summarised here.