The Sri Lanka Inland Revenue Department (IRD) has published a Notice to VAT Registered Persons confirming the increase in the VAT rate from 15% to 18% with effect from 1 January 2024. The notice also provides that any advance payment made prior to 1 January 2024 in respect of goods or services receivable on or after 1 January 2024 is chargeable to VAT at the prior 15% rate. Further, the notice confirms that the VAT rate on the supply of financial services remains unchanged at 18%.