CoPF approves stamp duty hike, lifting key import bans

Tuesday, 24 June 2025 03:35 - - {{hitsCtrl.values.hits}}

Doubles stamp duty on property lease agreements from Rs. 10 to Rs. 20 per Rs. 1,000 effective from 1 April; expects to generate 0.01% of GDP in additional revenue
Approves phased lifting of import restrictions imposed since 2020 under Import and Export (Control) Act; permits imports of used clothing (warm clothes) and motor vehicle spare parts
Permits importation of gaming equipment and machinery for licenced casinos, with oversight mandated under Casino Business (Regulation) Act
Directs Sri Lanka Customs to maintain detailed import records for casino-related equipment to ensure compliance
CoPF Chief Dr. Harsha de Silva urges swift passage of Gambling Authority Bill to recoup significant tax revenue currently lost to unregulated activity

The Committee on Public Finance (CoPF) chaired by MP Dr. Harsha de Silva recently approved a series of significant fiscal measures, including an increase in stamp duty and the phased relaxation of longstanding import restrictions, to boost State revenue and ease pressure on key industries.

The stamp duty revision, brought under the Stamp Duty (Special Provisions) Act, No. 12 of 2006 and in line with the 2025 Budget proposal, will see rates on property lease agreements doubled from Rs. 10 to Rs. 20 per every Rs. 1,000.

According to the Finance Ministry officials who briefed the CoPF, the adjustment, which came into effect from 1 April, is expected to generate an additional revenue equivalent to 0.01% of the GDP.

The Committee also gave the green light to two regulatory changes under the Import and Export (Control) Act, No. 1 of 1969. These regulations propose to lift restrictions that have been in place since 2020, marking a gradual shift from protectionist policies towards more open trade.

Among the eased restrictions is the phased importation of used clothing (warm clothes) and motor vehicle spare parts, providing relief to industries hampered due to import bans. In addition, the CoPF approved importation of gaming equipment and machinery for licenced casinos, governed by the Casino Business (Regulation) Act, No. 14 of 2010.

The Committee directed Sri Lanka Customs to maintain detailed records of all imported casino-related equipment to ensure oversight.

Additionally, Finance Ministry officials briefed the Committee on the background regarding the draft Bill for the establishment of a Gambling Regulatory Authority.

Dr. de Silva, expressing his views, stated that expediting the passage of the proposed legislation to establish the Gambling Regulatory Authority would enable the Government to recover a significant amount of revenue currently being lost in taxes.

The meeting was attended by Finance Deputy Minister Dr. Harshana Suriyapperuma and MPs Ravi Karunanayake, Ajith Agalakada, M.K.M Aslam, Dr. Kaushalya Ariyarathna, Arkam Ilyas, Chithral Fernando, Wijesiri Basnayake, and Lakmali Hemachandra.

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