Sri Lanka VAT Rates 2026
Sri Lanka (ශ්රී ලංකා / இலங்கை) levies Value Added Tax as VAT (Value Added Tax). The standard rate is 18%, applied to most goods and services. Sri Lanka applies a single flat rate with no reduced rates.
Current rates — 2026
| Type | Rate | Applies to |
|---|---|---|
| Standard | 18% | Most goods and services |
| Zero-rated | 0% | Exports |
Registration and filing
| Registration threshold | LKR 60,000,000LKR 60 million annual turnover (LKR 15 million per quarter) |
| Tax authority | Inland Revenue Department (IRD) |
| Filing frequency | Monthly or quarterly returns depending on category |
Access rates via API
The TaxID API returns current VAT and GST rates for 200+ countries and territories. Use the /api/v1/rates/LK endpoint to get Sri Lanka data programmatically. Responses are cached for 24 hours.
curl http://localhost:3000/api/v1/rates/LK
# No authentication required for rate lookups
# Response:
# { "country_code": "LK", "tax_type": "vat",
# "standard_rate": 18, "reduced_rates": [],
# "currency": "LKR", "last_updated": "2025-10-01" }Fetching the rate in code
// Fetch current Sri Lanka VAT rates (no auth required)
const rates = await fetch('http://localhost:3000/api/v1/rates/LK').then(r => r.json());
// → { standard_rate: 18, reduced_rates: [],
// currency: 'LKR' }
applyRate(rates.standard_rate);About Sri Lanka VAT
Sri Lanka's VAT tells the story of its 2022 default: slashed to 8% in a disastrous 2019 stimulus, the rate was ratcheted to 12%, 15% and finally 18% as the IMF programme demanded revenue, while exemptions for fuel and electricity were stripped away. From October 2025, non-resident digital platforms must register and charge 18% VAT on services to Sri Lankan consumers. The threshold of LKR 60 million keeps most small businesses out, but the SVAT deferment scheme for exporters was abolished in the consolidation.
VAT in Sri Lanka is administered by the Inland Revenue Department (IRD).
Sources: PwC Worldwide Tax Summaries · Inland Revenue Department (accessed Jun 2026)
Rate history
- 2022Rate raised from 8% to 12%, then 15%, during the sovereign debt crisis
- 2024Raised again to 18% in January under the IMF programme
Frequently asked questions
What is the VAT rate in Sri Lanka in 2026?
18%, in force since January 2024 as part of the IMF-backed fiscal consolidation.
Do foreign digital services pay Sri Lankan VAT?
Yes — from 1 October 2025, non-resident providers of digital services to Sri Lankan consumers must register and charge 18% VAT.
Related concepts and guides: