Regulatory updates - Sri Lanka

The Inland Revenue Department has announced that implementation of the system is moving forward, with selected taxpayers already transmitting VAT invoice and schedule-related data in real time.

Integration with the tax authority platform

Implementation currently targets selected VAT-registered persons within garment exports as well as tea brokers and exporters who have integrated via API with the national tax authority platform (RAMIS).

Implementation relieves affected businesses of the manual submission of a number of VAT schedules, including output tax (schedule 01), credit and debit notes (schedule 04) and zero-rated supplies (schedule 07).

Invoice records, as well as credit and debit note records issued by tea brokers on behalf of suppliers and producers made through the Colombo Tea Auction have been automatically transmitted through the system since May 1, 2026.

Automation extends to purchase records

The IRD also reminds taxpayers that data submitted by suppliers will affect the purchaser’s VAT schedules, which will be automatically populated.

Purchasers must review and approve the invoice records and ensure accuracy before claiming the input tax through the RAMIS e-services. Manual submission of records will still be required for suppliers not yet integrated with the system.

Next steps

To further automate tax administration processes for Sri Lankan businesses, the Department intends to enable pre-population of import (schedule 03) and export data (schedule 06) from Sri Lanka Customs within the RAMIS e-service.

The IRD furthermore reminds taxpayers of the following roll-out plan:

• Phase 1: Expansion to VAT-registered, export-oriented enterprises
• Phase 2: Expansion to all VAT-registered persons

Further details may be consulted in the IRD notice.

According to Gazette Notification No. 2463/05, published on November 17, 2025, registered persons in Sri Lanka are required to issue tax invoices that adhere to the updated technical specifications and format. Although the changes were initially scheduled to take effect on January 1, 2026, implementation has been postponed to April 1, 2026.  

This reform marks another step forward in Sri Lanka’s digital taxation strategy, and taxpayers are now required to comply with the updated invoice standards. The official specification and the sample of the new tax invoice format can be accessed here. 

Earlier, the President of Sri Lanka called for the upgrade and digitization of the country’s tax system to meet its 2030 digital economy targets. In response, the Department of Inland Revenue has completed an assessment on integrating an e-invoicing framework with the existing Revenue Administration Management Information System (RAMIS).  

Based on the Inland Revenue’s evaluation, authorities have identified a secure Web Application Programming Interface (Web API) as the appropriate initial phase for implementing e-invoicing capabilities. This will allow seamless connectivity between the taxpayer’s ERPs and the RAMIS.  

The system will be implemented in phases, starting with a pilot phase involving selected taxpayers who have upgraded their ERP systems to support API integration. Full implementation of this initial phase is expected to be completed this year. 

In his 2026 Budget speech, the president of Sri Lanka outlined the other phases after the pilot phase: 

• First, the API system will be extended to cover selected export-oriented businesses 

• Secondly, the system will be fully rolled out to all VAT-registered businesses  

• The final phase will mandate e-invoicing for B2C transactions via point-of-sale machines, enabling real-time transaction recording and improving VAT compliance and transparency through a web-based platform 

While Sri Lanka does not currently operate a real-time e-invoicing system, the API initial phase initiative marks an important step toward aligning the country with global trends in tax modernization while building upon its existing tax infrastructure.