Budget highlights 2022

Basil Rajapaksa, the Minister of Finance, presented the 76th Budget of the Democratic Socialist Republic of Sri Lanka in the Parliament today, under the policy framework of the government of HE the President Gotabaya Rajapaksa, “Vistas of Prosperity and Splendour”.

With the aim of reducing the budget deficit of 11.1 percent in 2020 to 8.8 percent in 2022 and eventually achieving a balanced budget over the years, the fiscal proposals presented focuses on companies with a high revenue threshold without placing constraints on small and medium enterprises. Further in light of the constraints placed on the foreign reserves position in the country, it has been proposed to review the current framework in place under the Board of Investment related to attracting foreign direct investment and introducing suitable measures in this regard.

This memorandum has been prepared as a general guide, exclusively for the information of our clients and staff. These proposals may be subject to alteration during the passage of the legislation through the Parliament.

Therefore, conclusions and decisions should be made only after due consideration and consultation. For additional information and guidance on the proposed changes, the Tax and Business Advisory Service of SJMS Associates will be pleased to assist you.