Sri Lanka, Feb. 24 -- In a move to align tax structures with the 2026 Budget, the Cabinet has approved a Bill to amend the Social Security Contribution Tax Act, No. 25 of 2022. The amendments, drafted by the Legal Draftsman and cleared by the Attorney General, are designed to broaden the tax base and modernize compliance.

A primary focus of the new legislation is the reduction of the registration threshold for the Social Security Contribution Levy (SSCL).

Starting April 1, 2026, the annual turnover threshold for registration will be lowered from Rs. 60 million to Rs. 36 million.

This change aims to bring more SMEs and professionals into the tax net to support national revenue targets.

Additionally, the Bill incorporates new exemptions...