🇱🇰 Moving to Sri Lanka

• On: Gains and profits from employment, business, investment and other sources
• Who: Residence is determined under the Inland Revenue Act, No. 24 of 2017, s.69
• Limit: LKR 1.8M/yr ≈ $5,440

A resident is chargeable on income from Sri Lanka and on foreign-source income (global income); a non-resident only on gains and profits arising or derived from Sri Lanka. From 1 April 2025 the rates on taxable income are 6% to LKR 1,000,000, (≈ $3,020) 18% to LKR 1,500,000, (≈ $4,530) 24% to LKR 2,000,000, (≈ $6,050) 30% to LKR 2,500,000 (≈ $7,560) and 36% above, after an aggregate personal relief of LKR 1,800,000 (≈ $5,440) for residents and citizens.

Taxed on

Gains and profits from employment, business, investment and other sources, after the personal relief; gains from realising investment assets are taxed at 10%.

Who it applies to

• Residence is determined under the Inland Revenue Act, No. 24 of 2017, s.69.

Exclusions

• Employees leaving Sri Lanka for foreign employment under a contract of at least one year with a non-associated employer are not residents from the first day of that year of assessment until the contract expires (s.69(2A), effective 1 April 2025).
• Gains from realising investment assets are taxed at 10%, outside the progressive scale.

Limits

• LKR 1,800,000 a year (≈ $5,440) · Aggregate personal relief for a resident individual, or a non-resident Sri Lankan citizen, for each year of assessment commencing on or after 1 April 2025.
• LKR 1,000,000 a year (≈ $3,020) · 6% on taxable income up to LKR 1,000,000 (≈ $3,020) (years of assessment from 1 April 2025).
• LKR 1,500,000 a year (≈ $4,530) · 18% on taxable income from LKR 1,000,001 (≈ $3,020) to LKR 1,500,000 (≈ $4,530).
• LKR 2,000,000 a year (≈ $6,050) · 24% on taxable income from LKR 1,500,001 (≈ $4,530) to LKR 2,000,000 (≈ $6,050).
• LKR 2,500,000 a year (≈ $7,560) · 30% on taxable income from LKR 2,000,001 (≈ $6,050) to LKR 2,500,000 (≈ $7,560); 36% above LKR 2,500,000 (≈ $7,560).

Tax residence

Year of assessment runs from 1 April.

Visas

Visa status does not determine residence, except the Investor Category Residence Visa rule in s.69(1A).

Other taxes

VAT and other levies apply separately. A digital nomad visa extension requires proof of registration with the Inland Revenue Department.

Checked against official sources on 11 Oct 2026Change log

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• On: Worldwide income of residents (Inland Revenue Act section 4(a))
• Limit: LKR 1.8M/yr ≈ $5,440

A resident individual in Sri Lanka (resident there, or present 183 days or more in any 12-month period commencing or ending in the year of assessment) is taxed on income from wherever it arises; non-residents are taxed only on Sri Lankan-source income.

Taxed on

Worldwide income of residents (Inland Revenue Act section 4(a)); income arising in or derived from Sri Lanka for non-residents (section 4(b)).

Who it applies to

• Individual resident for the year of assessment: resides in Sri Lanka, or is present for 183 days or more in aggregate in any 12-month period commencing or ending during the year, or is a Government employee whose spouse is posted abroad, or works on a Sri Lankan ship.
• Resident individuals, and citizens who are non-residents, receive an aggregate personal relief of LKR 1,800,000 (≈ $5,440) for years of assessment commencing on or after 1 April 2025.

Exclusions

• Holders of an Investor Category Residence Visa are not residents for a year of assessment (section 69(1A), effective 1 April 2025); see “Investor Category Residence Visa holders: not a Sri Lankan resident for income tax (s.69(1A))”.

Limits

• LKR 1,800,000 a year (≈ $5,440) · Personal relief for resident individuals and citizens, for years of assessment from 1 April 2025

Days in the country

• At least 183 days in any 12-month period commencing or ending during the year of assessment · Presence makes an individual resident

Tax residence

Section 69(1) of the 2017 Act applies; the 2026 amendment changes section 69(1)(d) and adds 69(1A) only.

Visas

The Investor Category Residence Visa is the only visa carved out of resident status by statute.

Other taxes

Progressive rates are in “Income tax: residents on worldwide income, non-residents on Sri Lankan-source income”; VAT and other levies apply separately.

Checked against official sources on 10 Oct 2026Change log

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