Sri Lanka VAT / Sales Tax

Detailed vat / sales tax rates and rules for Sri Lanka in 2026.

VAT / Sales TaxLKR

Sri Lanka's VAT was increased to 18% from January 2024 (from 15%). Essential goods including rice, bread, and healthcare are exempt. The threshold for mandatory registration was reduced to improve compliance.

Standard Rate

18%

Registration Threshold

LKR 80 million annual turnover (reduced from LKR 300 million)

Reduced Rates

0% — Exports, essential food items, and certain services

How Sri Lanka VAT / Sales Tax compares

Sri Lanka’s standard VAT / sales tax rate of 18% is the 53rd highest of 203 countries TaxAtlas tracks, above the global average of 13.7% and Asia’s regional average of 9.6%.