The Sri Lanka Inland Revenue Department recently published a Circular to Withholding Agents (Circular No: SEC/2026/E/04), providing guidelines and explanatory notes for withholding agents on how to deduct withholding tax and advance income tax from various payment types. This includes the following:
- 2% on payments to non-resident persons with respect to land, sea, and air transport or telecommunication services;
- 2.5% on the sales price payable to the seller of any gem sold at an auction con…