According to recent reports, the increase in Sri Lanka's value added tax (VAT) rate from 11% to 15% is scheduled to take effect on 2 May 2016. The increase was announced in March 2016, and was to apply from 1 April, but was delayed. The increase follows the reversal of a change from the single VAT rate to a 12.5% rate for services and an 8% rate for goods in January.