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Sri Lanka: Amended tax incentives and exemptions (Colombo Port City)

Effective January 20, 2026

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January 30, 2026

Legislation to amend the Colombo Port City Economic Commission Act, No. 11 of 2021 was published on January 23, 2026.

Highlights of the amendment include:

  • Tax on employment income
  • Key changes to business of strategic importance (BSI) framework
  • Mandatory tax filings for BSI
  • Ex-post monitoring of BSI
  • Offshore banking regulation
  • No fees charged

The Colombo Port City Economic Commission (Amendment) Act No. 1 of 2026 came into effect on January 20, 2026.

Read a January 2026 report prepared by the KPMG member firm in Sri Lanka

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