The proposed Finance (Amendment) Bill to amend the Finance Act No. 35 of 2018 has been approved by the Committee on Public Finance (CoPF), chaired by MP Dr. Harsha de Silva.
The key amendment aims to expand telecommunications infrastructure and improve digital connectivity in Sri Lanka. Under the proposal, new telecommunications towers that become operational on or after January 1, 2026, will be granted a five-year tax exemption. The measure was first announced in the 2026 Budget.
The committee also considered amendments to the Telecommunications Levy Act No. 21 of 2011, aimed at updating the legal framework governing telecom taxes and improving transparency in tax administration.
However, CoPF did not approve a proposal that would have allowed telecom operators to claim tax deductions on unpaid customer bills. The committee said granting such relief to a limited number of large companies would be unfair, particularly when similar concessions are unavailable to small businesses.
The committee noted that companies are responsible for collecting taxes from customers and that failures in collection should not reduce government revenue. The proposal will be reconsidered after further clarification.
Meanwhile, the committee also raised concerns over the misuse of the Sri Lankan Government emblem in online gambling advertisements claiming to be “licensed.” Officials informed the committee that no licences have been issued to any online gambling operators in Sri Lanka, prompting instructions for an immediate inquiry.
The committee further approved several gazette notifications relating to tax and economic policy, including the replacement of the cess tax on imported textiles with an 18% VAT from April 1, 2026, and a proposal to exempt disaster relief payments from stamp duty charges. (Newswire)
