Sri Lankan Cabinet Approves Amendments to Personal Income Tax Structure

Sri Lanka’s Cabinet of Ministers has approved adjustments to the Personal Income Tax (PIT) structure.

The amendments to the PIT structure are as follows:

1. The tax-free threshold remains unchanged at Rs. 1.2 million per annum.
2. Tax bands will increase from Rs. 500,000 to Rs. 720,000.
3. The marginal tax rate for each band remains at 6%, with the top tax rate staying at 36%.

According to a post shared on X by Minister of Foreign Affairs Ali Sabry, these adjustments will take effect from April 2025.