Update - Sri Lanka Enacts VAT Amendments for Digital and Financial Services and Other Changes

As previously reported, Sri Lanka certified (enacted) the Value Added Tax (Amendment) Act, No 14 of 2026 on 30 June 2026, which includes various changes to the Value Added Tax Act, No. 14 of 2002. This includes new rules for the collection of VAT on digital services supplied by non-residents from 1 July 2026, as well as an increase in the VAT rate on financial services from 18% to 20.5%, effective 1 July 2026. These and other amendments have been summarized in a Notice to Taxpayers recently …