- From April 1, 2026, fabric imports and local supplies in Sri Lanka will be subject to 18% VAT, ending previous zero-rate provisions.
- The CESS levy on fabric imports is removed from the same date.
- Fabric imported before April 1, 2026, that was subject to a CESS levy remains VAT exempt, provided proper records are kept.
- The changes are based on recent Gazette notifications and clarifications from the Inland Revenue Department.
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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