A key provision of the Bill is aimed at strengthening Sri Lanka’s telecommunications infrastructure and expanding digital connectivity. Under the proposed amendment, telecommunications towers that commence operations on or after January 1, 2026, will be eligible for a five-year tax exemption, in line with proposals announced in the 2026 Budget.
The committee also reviewed amendments to the Telecommunications Levy Act No. 21 of 2011, which are intended to modernize the legal framework governing telecom-related taxes and enhance transparency in tax administration.
However, CoPF declined to approve a proposal that would have permitted telecommunications companies to claim tax deductions on unpaid customer bills. Committee members noted that such a concession would unfairly benefit a limited number of large corporations, while similar relief is not available to small and medium-sized businesses.
The committee emphasized that telecom operators are responsible for collecting taxes from consumers and that shortcomings in tax collection should not result in a loss of government revenue. The proposal will be reconsidered after further clarification is provided.
Meanwhile, CoPF raised concerns regarding the use of the Sri Lankan Government emblem in advertisements promoting online gambling platforms as “licensed” operators. Officials informed the committee that no licences have been issued to online gambling businesses in Sri Lanka, prompting the committee to call for an immediate investigation into the matter.
The committee also approved several gazette notifications related to taxation and economic policy, including the replacement of the cess levy on imported textiles with an 18 percent VAT effective from April 1, 2026, and a proposal to exempt disaster relief payments from stamp duty.
