Regulatory updates - Sri Lanka

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. 

According to the announcement, the President of Sri Lanka emphasized the need for efficient and transparent tax administration to align with Sri Lanka’s digital economic strategy for 2030 during a meeting held on 8 July.

The discussion focused on enhancing the existing Revenue Administration Management Information System (RAMIS), addressing its current challenges, and exploring local acquisition and technical solutions. The conversation further covered key goals, including minimizing the tax gap, streamlining the tax process, boosting transparency, and implementing Point of Sale (POS) systems for transactions.

These initiatives aim to expand the country’s tax base and make it easier for the public to fulfil their tax obligations.