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Friday, November 13 2026
Friday, November 13 2026
MONETABRIEF - Sri Lanka is reducing personal income, according to the text of a speech by President Anura Kumara Dissanayake.
Rates have been reduced for most slabs.
Rates have been reduced for all but the highest income earners.
Through the proposed revisions, the tax free thresholds will be be further increased to 162,500 rupees from 150,000 rupees.
A person receiving a monthly salary and allowances of up to 162,500 will not be required to pay tax on the salary.
The tax slab to which the 6 percent tax rate applies 70,833 rupees per month, and thereafter the tax slabs will be widened from 41,667 rupees to 50,000 per month.
The tax rates will be set at 6 percent, 12 percent, 18 percent, 24 percent, 30 percent and 36 percent, applying a rate of 12 percent instead of 18 percent after the 6 percent rate.
These revisions will raise the monthly income threshold at which the maximum personal income tax rate applies from 358,000 rupees to 433,000 rupees.
Consequently, each individual taxpayer will receive an additional monthly tax relief ranging from a minimum of 750 percent to a maximum of 15,750 percent.
The combined result of the tax reforms introduced in 2025 and the revisions proposed for 2027, the total monthly tax relief provided by to each individual taxpayer will increase ranging from a minimum of 4,250 to a maximum of 36,250.
The budget has also proposed lifting VAT from school books. (Colombo/Nov12/2026)
| 3 month bill | 9.26% | 1bp ▲ |
| 12-m bill | 9.95% | 2bp - |
| Gold (Ounce) | $4015 | - ▼ |
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