Many people are looking for ways to reduce or legally avoid needless deductions in light of Sri Lanka’s recent increase in the Withholding Tax (WHT) on interest income, which went from 5% to 10% as of April 1, 2025.
This useful guide explains how qualified taxpayers can stay completely compliant with Sri Lankan tax laws while avoiding WHT deductions.
- Recognize Who Is Exempt
Individuals who earn less than Rs. 1.8 million (Rs. 150,000 per month) annually are exempt from WHT on interest income under the current regulations. The purpose of this exemption is to guarantee equitable tax treatment and safeguard low-income earners.
See video below for Full Details
