Sri Lanka Rescinds VAT Zero-Rate for Imported Fabric

Sri Lanka's Inland Revenue Department has issued a Notice to VAT Registered Persons announcing that the VAT zero-rate for imported fabric has been rescinded with effect from 1 April 2026, with such imports now subject to the standard VAT rate of 18%. In connection with this, the CESS levy imposed on the importation of fabric is removed with effect from 1 April 2026.

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Value Added Tax (VAT)

Notice is hereby given to all registered persons that, in the exercise of the powers vested under…