Sri Lanka Budget for 2025 Delivered Including Capital Gains Tax Rate Increase and Other Changes

The President of Sri Lanka delivered the Budget Speech for 2025 on 17 February 2025. The main tax measures include the following:

• The requirement to file the Statement of Estimated Tax payable (SET) will be removed starting from year of assessment 2025/2026;
• Provisions will be introduced to calculate tax installments based on the previous year's income tax payable;
• Payments to non-residents for aircraft, software licenses, or related services from the Sri Lanka Air Force will be exempted;
• P…