Sri Lanka Tax Agency Issues Notice on VAT for Fabric Imports

The Sri Lankan Inland Revenue Department April 8 issued Notice No. PN/VAT/2026-04/1, on removal of the zero-rated VAT on fabric imports, effective April 1. The notice includes: 1) application of VAT at 18 percent on the importation and local sale of fabric; and 2) the exemption of VAT on the supply of fabric imported prior to April 1, and already subjected to social security contributions (CESS) at the time of import. [Sri Lanka, Inland Revenue, 04/08/26]

Reference: View Notice No. PN/VAT/2026-04/1. View Index.