Value Added Tax (VAT) has been increased by 2.5% for all goods and services in Sri Lanka.

Original review summary

The review says the claim is misleading: the 20.5% composite rate taking effect on July 1, 2026, applies to banks and financial institutions, while VAT on general goods and services remains 18%. It explains that the composite rate consolidates the existing 18% VAT and 2.5% Social Security Contribution Levy.[S1]