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Sri Lanka Increased VAT Rate To 15 Percent

May 10, 2016

On May 2, 2016, Sri Lanka raised its headline rate of value-added tax from 11 percent to 15 percent to shore up the nation’s finances.

A day earlier it had controversially expanded the scope of the VAT to cover healthcare services.

Some other goods and services have been added to the tax base, to substantially expand revenues.

This month Sri Lanka reached an agreement with the International Monetary Fund for a 36-month line of credit worth about USD1.5bn. The nation has committed to implementing fiscal reforms to reduce the fiscal deficit to 3.5 percent of gross domestic product by 2020, including by implementing a new Inland Revenue Act.

Source: http://www.tax-news.com/