Speaker Gives Formal Approval to Inland Revenue Reform Legislation

By: Isuru Parakrama

June 04, Colombo (LNW): Speaker of Parliament Dr Jagath Wickramaratne has formally certified the Inland Revenue (Amendment) Act, marking the final step in bringing the new legislation into effect.

The law, enacted as the Inland Revenue (Amendment) Act No. 11 of 2026, introduces a series of reforms to the existing Inland Revenue Act of 2017 following its approval by Parliament on May 19, 2026.

According to parliamentary officials, the amendments are designed to streamline tax administration, strengthen regulatory oversight and improve the efficiency of revenue collection. The updated framework also aims to promote greater transparency within the financial system while reinforcing measures intended to combat money laundering and other illicit financial activities.

Among the notable provisions are new requirements for the use of Taxpayer Identification Number (TIN) certificates in selected high-value financial transactions. The legislation also revises certain methods used in calculating taxable income, refines rules governing tax deductions, and provides clearer guidance on tax concessions available to qualifying projects and businesses.

In addition, the Act broadens the circumstances under which tax-related information may be shared with authorised public institutions, a move expected to support compliance and enhance inter-agency cooperation.

With the Speaker’s endorsement now complete, the Inland Revenue (Amendment) Act No. 11 of 2026 has officially come into force, ushering in a new phase of tax administration and regulatory reform in the country.

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