Regulatory updates - Sri Lanka

The Sri Lankan Inland Revenue Department (IRD) published Gazette Extraordinary No. 2500/106 on August 6, 2026, amending Gazette Extraordinary No. 2481/22 by changing its effective date from July 1, 2026, to October 1, 2026.

The August 2026 amendment does not affect the invoice format specifications. All other matters set out in Gazette No. 2481/22 remain unchanged.

Background

As previously reported, Gazette No. 2463/05 introduced the prescribed VAT tax invoice format. This was subsequently revised on March 27, 2026, through Gazette No. 2481/22, which introduced clarifications and greater flexibility.

VAT invoice format

The revised format will apply to all VAT-registered persons issuing tax invoices for taxable supplies in Sri Lanka from October 1, 2026. Key changes include:

• Supplier and purchaser details: The supplier's and purchaser's Tax Identification Numbers (TIN) are specified as nine-digit numbers issued by the Commissioner General of Inland Revenue. Telephone numbers, previously required, are now optional.
• Invoice sequence: The required YYMMM_QQQQ_XXXXX structure is retained, with a monthly or annual restart permitted in certain cases. The MMM element identifies the first three letters of the calendar month, QQQQ an alphanumeric code identifying an organizational entity or other classification, and XXXXX the invoice serial number. The invoice serial number sequence should remain continuous but may recommence at the beginning of each year or month under certain circumstances.
• Purchaser detail placement: Purchaser details may be included either in the top right-hand corner of the tax invoice or below the supplier's particulars.
• Date and place of supply: “Date of delivery” is changed to “date of supply”. The place of supply field is optional and may be included if the place of invoice issuance differs from the place from which the delivery of goods or services originates.
• Amounts in LKR: The value of supply must be stated in Sri Lankan Rupees (LKR), inclusive of cents, and expressed to two decimal places. The requirement to state the total consideration in words is now optional.
• Mode of payment: Where the actual mode of payment is not known at the time of issuance, the expected mode of payment may be stated.
• Invoice design flexibility: Suppliers may modify the specimen format in the Gazette, provided that the mandated specifications are met. Additional rows or columns may be added for further information, and businesses may include logos, trademarks, and other relevant headers or footers.

The Inland Revenue Department has announced that implementation of the system is moving forward, with selected taxpayers already transmitting VAT invoice and schedule-related data in real time.

Integration with the tax authority platform

Implementation currently targets selected VAT-registered persons within garment exports as well as tea brokers and exporters who have integrated via API with the national tax authority platform (RAMIS).

Implementation relieves affected businesses of the manual submission of a number of VAT schedules, including output tax (schedule 01), credit and debit notes (schedule 04) and zero-rated supplies (schedule 07).

Invoice records, as well as credit and debit note records issued by tea brokers on behalf of suppliers and producers made through the Colombo Tea Auction have been automatically transmitted through the system since May 1, 2026.

Automation extends to purchase records

The IRD also reminds taxpayers that data submitted by suppliers will affect the purchaser’s VAT schedules, which will be automatically populated.

Purchasers must review and approve the invoice records and ensure accuracy before claiming the input tax through the RAMIS e-services. Manual submission of records will still be required for suppliers not yet integrated with the system.

Next steps

To further automate tax administration processes for Sri Lankan businesses, the Department intends to enable pre-population of import (schedule 03) and export data (schedule 06) from Sri Lanka Customs within the RAMIS e-service

The IRD furthermore reminds taxpayers of the following roll-out plan:

• Phase 1: Expansion to VAT-registered, export-oriented enterprises
• Phase 2: Expansion to all VAT-registered persons

Further details may be consulted in the IRD notice.

According to Gazette Notification No. 2463/05, published on November 17, 2025, registered persons in Sri Lanka are required to issue tax invoices that adhere to the updated technical specifications and format. Although the changes were initially scheduled to take effect on January 1, 2026, implementation has been postponed to April 1, 2026.

This reform marks another step forward in Sri Lanka’s digital taxation strategy, and taxpayers are now required to comply with the updated invoice standards. The official specification and the sample of the new tax invoice format can be accessed here.