Sri Lanka, June 25 -- The Inland Revenue (Amendment) Act No. 11 of 2026, which was certified on June 3, 2026, has introduced several significant changes to Sri Lanka's tax framework. Here are some of the key amendments.

Q: Are profits from selling personal motor vehicles now taxable?

A: No. Gains made from the sale or transfer of motor vehicles will no longer be treated as "other income" for income tax purposes, provided the vehicle is not trading stock or a depreciable business asset eligible for capital allowances. Similarly, losses from such sales cannot be claimed as tax deductions. This change is effective from April 1, 2024.

Q: What are the new restrictions on large cash transactions?

A: Individuals or businesses making payment...