Sri Lanka

Individual - Taxes on personal income

Last reviewed - 02 August 2023

Resident individuals are subject to income tax on their worldwide income. Non-resident individuals are taxed only on their Sri Lanka-sourced income.

Personal income tax rates

Recent personal income tax (PIT) rates are as follows:

Years of assessment up to and including 2021/22

Income (LKR*)	PIT rate (%)
First 3 million	6
Next 3 million	12
Over 6 million	18

* Sri Lankan rupees

Period of first nine months of 2022/23

Income	PIT rate (%)
First 2.25 million	6
Next 2.25 million	12
Over 4.5 million	18

Period of last three months of 2022/23

Income	PIT rate (%)
First 125,000	6
Next 125,000	12
Next 125,000	18
Next 125,000	24
Next 125,000	30
Over 625,000	36

Years of assessment from and including 2023/24

Income	PIT rate (%)
First 500,000	6
Next 500,000	12
Next 500,000	18
Next 500,000	24
Next 500,000	30
Over 2.5 million	36

Concessionary tax rates

Accumulated employers' contribution to an approved or regulated provident fund, when withdrawn, is exempt from tax. Concessionary tax rates apply to sums paid to an employee on cessation of employment when the scheme is uniformly applicable to all employees by way of compensation, commuted pension, retirement gratuity, and contributions to the Employees Trust Fund.

Tax rates on liable retirement benefits, effective from 1 January 2020, are as follows: