COLOMBO, Sri Lanka – 13 August 2026 – The Inland Revenue Department (IRD) of Sri Lanka has released a consolidated version of the Social Security Contribution Levy (SSCL) Act, No. 25 of 2022. This crucial document, compiled up to 2026, incorporates all amendments made to the Act up to April 9, 2026, providing a comprehensive reference for taxpayers and businesses operating in the country.
The consolidated text, officially dated June 30, 2026, is an essential resource for understanding the current legal framework of the SSCL. While not a statutory consolidation, it serves as a convenient and authoritative reference, integrating original provisions with subsequent amendments and their effective dates for ease of navigation and compliance.
Understanding the Consolidation: Amendments and Scope
The Social Security Contribution Levy Act, which came into operation on October 1, 2022, has undergone several revisions since its enactment. This consolidated version brings together changes introduced by the following Amendment Acts:
- The Social Security Contribution Levy (Amendment) Act, No. 15 of 2023 (certified on September 8, 2023)
- The Social Security Contribution Levy (Amendment) Act, No. 15 of 2024 (certified on March 20, 2024)
- The Social Security Contribution Levy (Amendment) Act, No. 24 of 2025 (certified on December 17, 2025)
- The Social Security Contribution Levy (Amendment) Act, No. 10 of 2026 (certified on April 9, 2026)
The document clarifies that the law as set out within this consolidation applies from October 1, 2022, onwards, with specific amendment effective dates duly noted within the text.
Significant Changes for Businesses and Taxpayers
The consolidated Act highlights several key changes that will directly impact how businesses manage their SSCL obligations:
Revised Registration and Cancellation Thresholds
A notable update concerns the turnover thresholds for mandatory registration and cancellation under the Act. Effective from July 1, 2026, the thresholds have been significantly adjusted:
- Mandatory Registration: Businesses (other than importers) are now required to register if their aggregate turnover for a quarter exceeds or is likely to exceed **nine million rupees (Rs. 9,000,000)**, or if their aggregate turnover for a period of four consecutive quarters exceeds or is likely to exceed **thirty-six million rupees (Rs. 36,000,000)**. This marks a reduction from previous thresholds, potentially bringing more businesses into the SSCL net.
- Cancellation of Registration: Correspondingly, the aggregate turnover for a period of consecutive four quarters for cancellation of registration has been set at **thirty-six million rupees (Rs. 36,000,000)**, also effective from July 1, 2026.
These revised thresholds underscore the government’s continued efforts to expand the tax base and ensure broader participation in social security contributions.
Updated Exempted Articles and Services
The First Schedule of the Act, detailing exempted articles and services, has also seen important revisions:
Exempted Articles (Part 1A – Importation)
- Any motor vehicle identified under Harmonized Commodity Description and Coding Numbers for Customs purposes and liable to excise duty under the Excise (Special Provisions) Act, No. 13 of 1989, is exempt on importation prior to May 1, 2026.
Exempted Articles (Part 1B – Wholesale/Retail Sale)
- Petrol, diesel, or kerosene are exempt from July 1, 2025.
- Fresh milk, green leaf, cinnamon, or rubber (latex, crepe, or sheet rubber) purchased from any local manufacturer or producer are exempt.
- Any motor vehicle is exempt effective from May 1, 2026.
Exempted Services (Part II)
- Generation and supply of electricity are exempt, with an exception for supply by distribution licence holders under the Sri Lanka Electricity Act, No. 20 of 2009 (effective September 8, 2023).
- Transportation of goods and passengers, including services related to international transportation by container terminal operators, remains exempt.
- Services provided by the Employee’s Trust Fund, Provident Fund, Pension Fund, Pension Trust Fund, and Gratuity Fund are now explicitly exempt.
- Services by General Sales Agents holding an Air Transport Service Licence are exempt.
- Financial services of any person carrying on the business of providing financial services in Sri Lanka and liable to Value Added Tax under Chapter IIIA of the VAT Act, No. 14 of 2002, at the rate of twenty and one half per centum, are also exempt.
The Tax Policy & Legislation Unit of the Inland Revenue Department has meticulously prepared this document to ensure clarity and accessibility for all stakeholders. Businesses, accountants, tax consultants, and legal professionals are strongly advised to thoroughly review this consolidated Act to ensure full compliance with the updated provisions and to properly plan their financial activities.
The availability of this consolidated text underscores the IRD’s commitment to transparency and facilitating a clearer understanding of the tax landscape in Sri Lanka.
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