Sri Lanka Tax Agency Issues Circular on Advance Income Tax Relief on Interest Income

The Sri Lankan Inland Revenue March 23 issued Circular No. SEC/2026/E/01, on the self-declaration procedures for resident individuals seeking advance income tax (AIT) relief on interest income from banks and financial institutions, effective April 1. The circular includes that: 1) a resident qualifies for relief from the 10 percent AIT withholding if their assessable income from all sources doesn’t exceed 1.8 million Sri Lankan rupees (US$5,690) for the relevant year of assessment; 2) a resident must file a self-declaration with each bank or financial institution holding their deposits; 3) guardians may file self-declarations for minor children with no taxable income; ...