When was Sri Lanka's Budget 2027 presented?

Sri Lanka's Budget 2027 is scheduled to be presented to Parliament on 12 November 2026 by the Minister of Finance. This page tracks every tax-related change announced in the speech and in subsequent Treasury and IRD circulars, and is updated live as details emerge.

Which taxes are affected by Sri Lanka Budget 2027?

This article covers all tax-related measures announced in the Budget 2027: personal income tax (rate bands, reliefs, thresholds), Advance Personal Income Tax (APIT / PAYE), Value Added Tax (VAT), Withholding Tax (WHT), Capital Gains Tax (CGT), corporate income tax, and any new levies or taxes abolished. Sector-specific changes and compliance deadline changes are summarised separately.

When do the Budget 2027 tax changes take effect?

Effective dates vary by measure. Some measures take effect from the date of the Budget speech, some from 1 April 2027 (the start of the next Year of Assessment), and some are subject to amendment of the Inland Revenue Act and must wait for the related Bill to pass Parliament. Each section below states the effective date that was announced.

Where can I find the official Budget 2027 documents?

The Budget 2027 Speech, the Appropriation Bill, and the official Treasury Budget Documents are published on treasury.gov.lk after the speech is delivered. Subsequent Inland Revenue Department circulars are published on ird.gov.lk. This article cites and links the relevant paragraphs of each source as they become available.

Do the Budget 2027 changes affect the YA 2025/26 return due 30 November 2026?

No. The YA 2025/26 personal income tax return, which is due on 30 November 2026, must be filed on the rules in force during that Year of Assessment. Budget 2027 changes apply to Year of Assessment 2026/27 onwards (unless an earlier effective date is specifically announced for a particular measure).

How will ERPA help clients navigate the Budget 2027 changes?

ERPA Solutions will publish detailed topic-by-topic guides (Personal Income Tax, VAT, WHT, CGT, Corporate) within 48 hours of the Budget speech. We will also update the calculators at erpa.lk/tools/tax-calculators as soon as rate changes take effect. Clients can book a free 10-minute consultation to review how a specific measure applies to their situation.

Sri Lanka Budget 2027 — Tax Changes (Live Updates)

Live update: this article is being updated as details from the Budget 2027 speech and subsequent Inland Revenue Department circulars become clear. Last updated: 11 November 2026, 10:00 LKT.

Sri Lanka’s Budget 2027 is scheduled to be presented to Parliament on 12 November 2026. This article tracks every tax-related measure announced in the speech, and in the Inland Revenue Department circulars that follow, as they are confirmed. We update this page every one to two hours on budget day, and daily as circulars are released over the following week.

What’s confirmed so far

Awaiting Budget speech. We will post the first confirmed highlights here within fifteen minutes of the Minister of Finance beginning the tax section of the speech. Refresh this page or book a short call with us if you want to talk through how a specific announcement applies to your business.

1 · Personal Income TaxAwaiting speech

This section will cover any changes to the personal income tax rate bands, the Rs 1.8 million personal relief, the Rs 1.2 million employment-income relief, and the progressive bands that currently top out at 36%. We will publish the new rate table as soon as it is confirmed, with a worked example at a typical middle-income salary.

To be updated: rate bands, thresholds, reliefs, effective date, who is affected, worked example.

2 · APIT & PAYEAwaiting speech

Advance Personal Income Tax (APIT) is deducted at source by employers from employee emoluments. Any change to the personal income tax bands feeds through into APIT. This section will cover APIT table updates, any changes to the opt-in / opt-out regime, and the effective pay-month from which employers must deduct at the new rates.

To be updated: new APIT table, effective pay-month, employer action items.

3 · Value Added TaxAwaiting speech

Sri Lanka VAT currently sits at 18%. This section will cover any rate change, any shift in the registration threshold (currently Rs 60 million turnover in any 12-month period), any addition to or removal from the schedule of exempt supplies, and any new zero-rated categories.

To be updated: VAT rate, registration threshold, exempt / zero-rated lists, effective date.

4 · Withholding TaxAwaiting speech

Withholding Tax applies at source on bank interest (10%), service fees to residents (5% above the Rs 100,000 monthly threshold), rent to residents (10%), dividends (15%), royalties (14%), and payments to non-residents (14%). This section will cover any rate change on any of those categories, any new WHT line, and the effective date from which the payer must deduct at the new rate.

To be updated: WHT rates by category, threshold changes, effective date.

5 · Capital Gains TaxAwaiting speech

The CGT rate for individuals and partnerships is currently 15%, effective 3 June 2026 under the Inland Revenue (Amendment) Act, No. 11 of 2026. This section will cover any further change to the CGT rate, to the exemptions, to the section 203(4) transitional rule, or to the 30-day filing deadline.

To be updated: CGT rate, exemptions, filing deadline.

For the current CGT rules, see our Capital Gains Tax on Land Sales in Sri Lanka guide.

6 · Corporate Income TaxAwaiting speech

Standard corporate income tax rates in Sri Lanka currently run from 15% (specific sectors) to 30% (headline rate). This section will cover any change to the headline rate, to the 15% sectoral rate, to SME concessions, to export-services concessions, or to the research-and-development deduction.

To be updated: rate bands, sector concessions, effective date.

7 · New taxes & leviesAwaiting speech

If the Budget introduces a new tax or levy (for example, a wealth tax, a windfall tax on a specific sector, a digital services tax, or a new environmental levy), we will cover it here. Each new line will include the taxable base, the rate, the effective date, the collection mechanism, and the first filing deadline.

To be updated with any newly-introduced tax or levy.

8 · Taxes abolished or reducedAwaiting speech

Budgets sometimes announce the removal or reduction of existing taxes. If any such measure is announced, we will list it here with the effective date and the refund / set-off mechanism for any interim period.

To be updated with any taxes abolished or reduced.

9 · Compliance & deadline changesAwaiting speech

This section will cover changes to filing deadlines, to quarterly instalment schedules, to TIN registration thresholds, to electronic filing requirements, and to penalty regimes.

To be updated: filing deadlines, penalty regime, e-filing.

10 · Sector-specific changesAwaiting speech

Sector-specific concessions and levies (construction, tourism, apparel, agriculture, IT & BPO, banking, telecoms, liquor & tobacco) are summarised here. We update this section as the Treasury circulars on each sector are published.

To be updated as sector circulars are released.

Deep-dive topic guides

As each tax head is confirmed, we publish a dedicated topic guide. Links here will go live as each is published:

Sources

Budget 2027 Speech — Ministry of Finance, Sri Lanka (linked once published)
Appropriation Bill 2027 — treasury.gov.lk
Inland Revenue Department circulars — ird.gov.lk

Disclaimer: This article is a live summary for general educational purposes. Budget 2027 measures are subject to formal amendment of the Inland Revenue Act and related Finance Acts, and the effective date of any measure depends on the passage of the related Bill through Parliament. Individual tax treatment depends on the facts of the case and the applicable legislation at the time. Obtain professional advice before acting on anything summarised here.