Submission of Self-Declaration for Advance Income Tax Exemption

As per Inland Revenue Department, Sri Lankan resident account holders whose annual total assessable income is below LKR 1,800,000 are required to submit a Self-Declaration confirming their non-taxable income status in order to be exempt from being charged Advance Income Tax of 10% on profits earned from their LKR deposit accounts.

Please note:

• Declarations submitted previously (for 2025/26) are no longer valid and a fresh declaration is required.
• The new self-declaration is valid for the Year of Assessment 2026/2027 and for subsequent years of assessment unless your total assessable income changes to be above the taxable thresholds for which a revised self-declaration needs to be submitted
• Any AIT deducted prior to submitting the declaration will not be refunded or reversed.

Download the Self-Declaration Form:
https://www.ird.gov.lk/en/Downloads/Forms_WHT_AIT/ISD_WHT_02_2026_E.pdf

How to Submit:

• Email the signed form from your registered email to  [email protected]
• Contact your Relationship Manager for assistance
• Visit your account-holding branch

Important Notes:

• Total assessable income should include all income sources (salary, business, investments, etc.)
• A valid TIN is required to submit the declaration
• Joint accounts: each account holder must submit separately
• Minor accounts: based on assessable income of the minor, parent/guardian may submit using their NIC and TIN,

For further details, please visit  www.ird.gov.lk  or contact your branch / call 011 775 6756.

Foreign Exchange regulations applicable on your Debit Card (Electronic Fund Transfer Card /EFTC ) for Payments in Foreign Currency

 The following guidelines have been issued in accordance to the Directions No 03 of 2011 under Foreign Exchange Act, No.12 of 2017.

In terms of Section 9 of the Foreign Exchange Act, No. 12 of 2017 (the FEA), read with Sections 5, 6, and 7 of the FEA, Authorized Dealers (ADs) i.e. Banks are permitted to issue Electronic Fund Transfer Cards (EFTCs)/Debit Cards to persons in or resident in Sri Lanka for making payments in foreign exchange to persons resident outside Sri Lanka, subject to the following terms and conditions:

1.      A payment on an EFTC/Debit Card to a person or an entity resident outside Sri Lanka may be made only for the following purposes:

Payment to be made abroad by a cardholder for services of a personal nature, including travel, accommodation, medical, living, and educational expenses
Payment for the purchase of goods abroad for personal use
Payment for the import of goods into Sri Lanka for personal use is subject to the terms, conditions, and limitations stipulated in the regulation issued under the Import and Export (Control) Act, No. 01 of 1969;
Payment of registration fees, tuition fees, examination fees, and annual subscription fees of a personal nature payable to a foreign professional body or an educational institution;
Payment to be made in respect of insurance premiums only for travel and health insurance of a personal nature;
Payment to be made in respect of overseas travel accommodations of a personal nature while in Sri Lanka.
2.      If the cardholder migrates or leaves Sri Lanka for permanent residence or employment purposes abroad, the card issued to such person in Sri Lanka shall be surrendered to the card issuing bank, except in the event that an EFTC is issued for making settlements in foreign exchange against funds held in Foreign Currency Accounts such as  BFCAs, PFCAs, DFCAs, DRAs, IIAs, and ERIAs, subject to the condition that the outstanding amounts are settled through inward remittances. (Surrendering the card to the issuing bank when migrating or going abroad for employment is NOT necessary in the event an EFTC is issued against a PFCA or BFCA.)

 3.      Cardholders need to keep evidence in respect of withdrawals or cash advances of foreign currencies using a debit or credit card, respectively, to meet the statutory record-keeping requirement. Such currencies have been utilized only for the permitted transactions under the directions.

4.      ADs shall issue EFTCs issued to cardholders that shall not be used for dealings in foreign exchange (forex trading), payments related to virtual currency transactions, payments related to betting, gaming, and gambling activities outside Sri Lanka, or payments for the import of goods to Sri Lanka for commercial purposes subject to the Regulations and Operating Instructions issued under the Import and Export (Control) Act, No. 01 of 1969, and any amendments thereto.

 5.      Cardholders should seek prior written permission from the Director-Department of Foreign Exchange to do an international transaction through an EFTC (Ex- debit, credit, or prepaid card) for any purpose that falls outside the purview of the Direction.

6.      The non-permitted international transactions done through EFTCs will be suspended by the Bank.

Note: The aforementioned regulations apply to Debit cards, and relevant Central Bank Act "Directions No. 03 of 2021 Under Foreign Exchange Act No. 12 of 2017 are shared below for further reference

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