Sri Lanka, Nov. 12 -- President Anura Kumara Dissanayake has announced comprehensive amendments to the Inland Revenue Act, No. 24 of 2017 as part of the 2027 Budget, raising the annual personal income tax-free relief threshold from Rs. 1.8 million to Rs. 1.95 million.

Alongside the higher tax-free allowance, the budget introduces a restructured progressive tax rate framework designed to widen brackets and ease the tax burden on individual earners:

First Rs. 850,000 of taxable income: Taxed at 6% (compared to the previous first Rs. 1 million at 6%)

Next Rs. 600,000: Taxed at 12% (a new intermediate tier replacing the former 18% rate)

Subsequent Rs. 600,000: Taxed at 18%

Next Rs. 600,000: Taxed at 24%

Following Rs. 600,000: Taxed at 3...