Sri Lanka

Individual - Other taxes

Last reviewed - 02 August 2023

Employees Provident Fund (EPF)

Employers and employees are required to contribute specified percentages (employer 12%, employee 8%) of each employee's monthly emoluments/salary to the EPF established by the government. Alternatively, employers and employees can contribute to certain private provident funds approved by the labour authority.

Employees Trust Fund

Employers are also required to contribute a specified percentage (currently 3%) of each employee's monthly emoluments/salary to the Employees Trust Fund established by the government.


Employers are required to pay a half-month's salary for each year of completion if the employee's service period exceeds five years at the time of retirement, resignation, or retrenchment.

Consumption taxes

Value-added tax (VAT)

VAT is payable on the prescribed valuations of imports and domestic supplies at a standard rate of 15%.  

See the Other taxes section in the Corporate tax summary for more information.

Net wealth/worth taxes

There are no net wealth/worth taxes in Sri Lanka.

Inheritance, estate, and gift taxes

There are no inheritance, estate, or gift taxes in Sri Lanka.

Economic Service Charge (ESC)

ESC is abolished with effect from 1 January 2020.

Tourism development levy

Tourism development levy is payable by every person (such as tourist hotels) licensed under the Tourist Development Act on the turnover of such institution at the rate of 1%.

Excise duties

Excise duties and special excise levies are charged on tobacco, cigarettes, liquor, motor vehicles, selected petroleum products, paints, air conditioners, dishwashers, household washing machines, and other products at various rates and at unit rates.

Local taxes

Taxes (more usually called ‘rates’) are currently assessed and collected annually from the owners of land and premises by the local authorities of the areas in which the properties are located. These authorities also impose and collect annual licence fees from certain businesses as well as taxes based on the annual gross takings of certain businesses, such as hotels.