Tuesday Jun 09, 2026
Tuesday Jun 09, 2026
Tuesday, 9 June 2026 02:44 - - {{hitsCtrl.values.hits}}
The Committee on Public Finance (CoPF) has approved a series of tax and fiscal policy reforms, including a five-year tax exemption for newly constructed telecommunications towers, while rejecting a proposal that would have allowed telecom operators to claim tax relief on unpaid customer bills.
The Finance (Amendment) Bill, which seeks to amend the Finance Act, No. 35 of 2018, was approved when the Committee met in Parliament under the chairmanship of MP Dr. Harsha de Silva.
The legislation forms part of measures announced in the 2026 Budget to accelerate digital infrastructure development and expand countrywide connectivity.
Under the proposed amendment, new telecommunications towers that become operational on or after 1 January 2026 will qualify for a five-year tax exemption. The Government expects the incentive to encourage investment in telecommunications infrastructure, particularly in underserved areas, and support the country’s digital transformation agenda.
The Committee also reviewed amendments to the Telecommunications Tax Act, No. 21 of 2011, aimed at regularising existing tax rates, improving the treatment of tax defaults, and strengthening transparency in tax administration.
Although the lawmakers endorsed measures to streamline tax rates and update the legal framework, they declined to approve a provision allowing operators to deduct telecom levy payments linked to unpaid customer bills.
Officials argued that the current law lacks clear provisions governing tax calculations when consumers default on payments and proposed allowing operators to claim relief within a specified period.
However, CoPF members raised concerns over fairness, noting that such concessions would primarily benefit a limited number of large companies while similar relief is unavailable to small businesses.
Dr. de Silva stressed that collecting taxes from consumers is the responsibility of service providers and that operational shortcomings should not result in reduced Government revenue. The Committee decided to revisit the issue after further clarification.
The meeting also highlighted concerns over the alleged misuse of the emblem of Sri Lanka by online gambling operators.
CoPF members questioned advertisements promoting online casinos as “licenced” using the official emblem of the State. Officials informed the Committee that no licences have been issued to online gambling establishments in Sri Lanka. The Committee directed the relevant authorities to investigate the matter immediately and report back.
In addition, lawmakers approved four Gazette Notifications relating to tax and economic policy. These included the introduction of new national subdivisions under Harmonised System (HS) Codes for Port and Airport Development Tax and Excise Tax purposes, aimed at improving the classification and taxation of imported goods.
The Committee also reviewed measures affecting the textile sector, including the removal of the cess levy on imported textiles and the imposition of an 18% Value Added Tax (VAT) from 1 April 2026. Officials said that although the change increases upfront import costs, VAT-registered businesses will be able to recover the tax as input credits, reducing the long-term burden.
Another approved measure exempts payment receipts from stamp duty, providing immediate relief for individuals affected by natural disasters.
The meeting was attended by Deputy Minister Nishantha Jayaweera and MPs Ravi Karunanayake, Harshana Rajakaruna, Lakmali Hemachandra and Wijesiri Basnayake.
