Summary of measures announced by the government of Sri Lanka in response to the COVID-19 Pandemic

measures sri lanka COVID19


The following measures have been announced by the Government as at 26.11.2020::


Banking and Finance:


The Monetary Board of the Central Bank of Sri Lanka [CBSL] by Circular No.4/2020 dated 24.03.2020 has directed Financial Institutions (i.e. Licensed Commercial Banks, Licensed Specialized Banks & Leasing companies) to:

  • Implement a debt moratorium (Capital & Interest) on –
    1. Lease rentals of specified vehicles operated by the self- employed for 6 months.
    2. Personal loans of private sector non-executive employees until 30.05.20.
    3. All personal loans lease rentals under the value of LKR 1 million for 3 months.
    4. Affected small/ medium enterprises, tourism, apparel, plantation and IT, related logistic service providers for 6 months.
  • Provide working capital requirements at 4% interest (with interest waived for at least 6 months) for the sectors mentioned in (d) above. The interest subsidy will be included in re finance.
  • Accommodate loan applications in respect of the above until 30.04.20 and finalize the same within 45 days.
    UPDATE: The Monetary Board of the Central Bank of Sri Lanka Circular No.6/2020 dated 29.04.2020 extended the submissions deadline for eligible borrowers until 15.05.2020
  • Fix a maximum interest rate of 15% for credit card transactions up to LKR 50,000/- , reduce minimum monthly payment on credit cards by 50% , extend repayment deadline for credit cards below limit of LR 50,000 /- and extend validity of cheques under LKR. 500,000/- until 30.04.20.[UPDATE: The Monetary Board of the Central Bank of Sri Lanka Circular No.6/2020 dated 29.04.2020 extended the Validity of Cheques until 15.05.2020)
    UPDATE: By the Press Release dated 20.08.2020 issued by the Economic Research Department it has been informed that the CBSL continues its accommodative monetary policy stance in reinforcing support for COVID 19 hit businesses. Accordingly, The Monetary Board of the CBSL has revised the regulated interest rates for Credit Cards, Pre-arranged Temporary Overdrafts, Pawning Facilities and Penal Interest rates over the regular interest rates. Accordingly, Interest Rates on Credit Cards were reduced to 18% per annum, pre-arranged Temporary Overdrafts to 16% per annum, Pawning facilities to 10% per annum and Penal interest rates were capped at 2 percentage points over the regular interest rates.
  • Specified opening times for licensed banks on non- curfew days and directions to corporate branches to be kept open during curfew to facilitate international transactions pertaining to several sectors including food and medicine.


The abovementioned circular was supplemented by Monetary Board Circular No.05/2020 dated 27.03.2020 which further elaborated on how the above concessions were to be implemented. The said circular specified inter alia that licensed commercial banks, licensed specialised banks, licensed finance companies and specialised leasing companies (hereinafter referred to as Financial Institutions) would be eligible to participate in this re-financing facility to support COVID-19 hit businesses including self-employment businesses and individuals commencing 25.03.2020.



Salient provisions of the said circular include:


  • Setting up a six-month Re-Financing facility of LKR 50 Billion to implement to aforementioned concessions in support of COVID-19 hit businesses including self-employment businesses and individuals.
  • The eligible sectors/ businesses have been specified as:
    1. Tourism, direct and indirect export-related businesses including apparel, IT, tea, spices, plantation and related logistic suppliers that have been adversely affected by work disruption and overseas lockdowns resulting from COVID – 19.
    2. Small and Medium Enterprises (SMEs) engaged in business sectors such as manufacturing, services, agriculture (including processing), construction, value addition and trading businesses including authorized domestic pharmaceutical suppliers with turnover below LKR 1 billion.
    3. Self-employment businesses and individuals who have lost their jobs or income due to the outbreak of COVID-19.
    4. Foreign currency earners (individuals and corporates) who have to repay loans in foreign currency and whose incomes/ businesses have been adversely affected due to the outbreak of COVID-19.
  • Limiting import facilities under this scheme to pharmaceutical drugs, medical equipment, food, fertilizer and essential raw materials and machinery and equipment.
  • Credit facilities supported under this Financing Scheme shall be term loans, leasing facilities, pawning, overdrafts and trade finance facilities denominated in Rupees and foreign currency subject to the requirements specified.
  • Specifying that financial institutions are to suspend recoveries processes throughout the duration of processing applications of the parties who have applied for relief through this scheme.
  • Concessions for Existing Performing Loans as at 25.03.2020 include extensions for permanent and temporary overdraft facilities (with a capped interest of 13% for the extension period), eligible trade facilities and pawning facilities.
  • Concessions for Existing Non-Performing Loans (NPLs) as at 25.03.2020 include waivers of penal interest, rescheduling of loans/advances and suspension of recovery legal actions/ auctioning off assets of the borrowers in accordance with the process set out in the said Circular.
  • Directing financial institutions to make provision to grant an additional loan or a new loan facility in LKR for working capital or investment purposes subject to conditions specified in the said circular, provided that the borrower submits a credible business plan.
    UPDATE: Monetary Board of the CBSL by Press Release dated 21.08.2020 issued by the Regional Development Department has decided to extend the deadline on 4% Working Capital Loan Scheme, permitting COVID- 19 affected businesses and individuals to submit their loan applications to respective financial institutions until the 30th of September 2020 under the SAUBHAGYA COVID -19 renaissance facility.
  • Defer capital repayments on refinance loans granted to licensed banks falling due from 01.01.2020 until 31.12.2020. However, banks are required to seek extension if required and enter into supplementary agreements with the relevant Government agency in this regard.
  • Directing financial institutions not to decline an application under this scheme solely bases on an adverse Credit Information Bureau (CRIB) record and develop a reporting modality in respect of the capital deferment granted under this scheme to performing borrowers, so that participation in the Scheme will not have an impact on the credit score of borrowers in the future, or be negatively reflected in future CRIB reports.
  • Directing financial institutions to not charge for cheque returns, stop payments, late payment fee on all credit cards and other credit facilities during the period up to 30.09.2020.
  • Imposing new reporting requirements on financial institutions to report the details of moratorium availed by their borrowers to the Bank Supervision Department and the Department of Supervision of Non-bank Financial Institutions, as relevant, as at 15th and 30th of each month, within 5 working days, commencing from 01.05.2020.
    UPDATE: By Circular No. 7 of 2020 dated the 16th July 2020 the CBSL has requested Financial Institutions to provide the following relief measures to eligible borrowers in respect of Tourism sector businesses and individuals; The moratorium initially granted for six months has been extended for a period of 12 months from 27.03.2020 in respect of capital outstanding of leasing facilities granted to tourism related vehicles. Though borrowers need to service the interest during the moratorium period, financial institutions has been requested to recover such interest in a manner not inconvenient to the borrower. Further accrued penal interest in respect of leasing facilities granted to tourism related vehicles has been waived off.
  • UPDATE: By Circular No. 08 of 2020 dated 26th August 2020 the Central Bank of Sri Lanka while revoking the Circular No. 07 aforesaid has requested Licensed Banks to issue a Debt Moratorium to COVID-19 affected businesses and individuals in the tourism sector for a further period of six months commencing from 1 October 2020 to 31 March 2021. The Capital and interest accrued by the Borrower is to be converted to a term loan which is recoverable from 01st July 2021 onwards. The minimum repayment period of such being 2 years.
  • Further Licensed banks are requested to waive off the accrued and unpaid penal interest as at 1 October 2020, if any, on performing and non-performing loans considered under this Circular.
  • UPDATE: In lieu of the second wave of COVID- 19 the Central Bank of Sri Lanka by Circular No. 10 of 2020 dated 09th November 2020 has directed Licensed banks to extend the Debt Moratorium to COVID 19 affected businesses and individuals on eligible Credit facilities such as; Term Loans, Leasing Facilities, Pawning, Overdrafts, trade finance or any other credit facilities denominated in Rupees and Foreign Currency which are in the performing category as at 01st October 2020) for a further period of six months commencing from the 1st of October 2020.

  • The eligible Sectors/businesses has been specified as;
    1. Tourism, direct and indirect export-related businesses including apparel, IT, tea, spices, plantation and related logistic suppliers that have been adversely affected by work disruption and overseas lockdowns resulting from COVID – 19.
    2. Small and Medium Enterprises (SMEs) engaged in business sectors such as manufacturing, services, agriculture (including processing), construction, value addition and trading businesses including authorized domestic pharmaceutical suppliers with turnover below LKR 1 billion.
    3. Self-employment businesses and individuals who have lost their jobs or income due to the outbreak of COVID-19.
    4. Foreign currency earners (individuals and corporates) who have to repay loans in foreign currency and whose incomes/ businesses have been adversely affected due to the outbreak of COVID-19.

    Per the said Circular Licensed Banks has further been instructed that;

    1. The capital and interest on contracted rate falling during the moratorium period is to be converted to a term loan, which is repayable starting from the 1st of April 2021 with a minimum repayment term of 24 months.
    2. In the case of Overdrafts an interest rate not exceeding 4% per annum may be charged and becomes repayable starting from the 1st of April 2021 with a minimum repayment term of 12 months
    3. To extend the due dates falling during the Moratorium period in respect of pawning facilities until the 01st of April 2021
    4. To waive off any accrued/unpaid penal interest as of 01st October 2020
    5. No Penal interest to be accrued and charged during the Moratorium period.

  • Monetary Board of Central Bank of Sri Lanka (CBSL) has by Banking Act Direction No. 03 of 2020 dated 13th May 2020 issued Restrictions on Discretionary Payments of Licensed Banks (i.e. Licensed Commercial Banks and Licensed Specialized Banks) incorporated or established in Sri Lanka or outside Sri Lanka and applicable until 31st December 2020.
  • CBSL Board of Central Bank of Sri Lanka (CBSL) has by Banking Act Direction No. 03 of 2020 dated 13th May 2020 issued Restrictions on Discretionary Payments of Licensed Banks (i.e. Licensed Commercial Banks and Licensed Specialized Banks) incorporated or established in Sri Lanka or outside Sri Lanka and applicable until 31st December 2020.
  • Monetary Board of CBSL by Banking Act Direction No. 06 of 2020 dated 16th July 2020 has approved further Extraordinary Regulatory measures under the Credit Guarantee and Interest Subsidy Scheme under Phase III of Saubagya COVID 19 Renaissance facility and liquidity facility implemented for the Construction Sector: Accordingly, Credit Facilities granted to the construction sector is to be considered as Liquid Assets for the Computation of Statutory Liquid Assets Ratio (SLAR) and such facilities are enabled with a 10% haircut until the 31st of December 2020. Further if the new facility is granted for the purpose of new economic activities, they are allowed to be classified as performing loans. In computation of Capital Adequacy Ratio they are Risk weighted at Zero Percent.
  • Monetary Board of the CBSL by Banking Act Determination No. 01 of 2020 dated 12th November 2020 taking in to consideration the adverse COVID -19 impact on all Licensed Banks has determined to maintain Annual License fee thereof for years 2019 and 2020 unchanged for the year 2021.

In addition to the above it has also been announced that:


  • Several State Banks (Bank of Ceylon, Peoples Bank, National Savings Bank) along with Sri Lanka Insurance Corporation, The Employees Provident Fund and the Employees Trust Fund will jointly invest in the treasury bonds and bills to stabilize the money market at a 7% interest rate.
  • The Central Bank, Commercial Banks, Insurance Services and the Treasury have been defined as Essential Services to ensure that they continue operations throughout curfew.
  • The Monetary board of the Central Bank of Sri Lanka (CBSL) has decided to reduce its Standing Deposit Facility Rate (SDFR) and Standing Lending Facility Rate (SLFR) by -25bps each to 6.25% and 7.25% respectively whilst reducing the Statutory Reserve Ratio (SRR) by -100bps to 4% with effect from 17.03.20.

    On 03.04.20 ,the Monetary Board of the Central Bank , decided to further reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 25 basis points to 6.00 per cent and 7.00 per cent, respectively, effective from the close of business on 03 April 2020 in order to complement the measures taken thus far to ease market conditions, and enable the domestic financial market to provide further relief to businesses and individuals affected by the COVID-19 pandemic..

    On 15.04.20, the Monetary Board also decided to allow the Bank Rate to automatically adjust in line with the SLFR, with a margin of +300 basis points and accordingly decided that the Bank Rate, has been effectively reduced by 500 basis points from 15.00 per cent to 10.00 per cent from 16.04.20.

    On 06.05.2020, the Monetary Board of the Central Bank having reviewed the current monetary policy stance and decided to further reduce the Standing Deposit Facility Rate (SDFR) and the Standing Lending Facility Rate (SLFR) of the Central Bank by 50 basis points to 5.50 per cent and 6.50 per cent, respectively, effective from the close of business on 06 May 2020.

    UPDATE: The Monetary Board of the CBSL has reduced the Statutory Reserve Ratio (SRR) applicable on all Rupee deposit liabilities of Licensed Commercial Banks (LCBs) by 200 basis points to 2.00 per cent, with effect from the Reserve maintenance period with effect from the 16th of June 2020.
  • The Monetary Board of the Central Bank has also decided to introduce the following measures to assist Licensed Finance Companies (LFCs) and Specialized Leasing Companies (SLCs) in order to support businesses and individuals affected by the COVID-19 Pandemic:
    1. Reduction of maintenance of liquid asset requirement for time deposits, savings deposits and borrowings to ease liquidity stress faced by LFCs/SLCs due to sudden withdrawal of cash by depositors and non-repayment of loan rentals.
    2. An extension of one year to comply with minimum core capital requirements. Accordingly, a timeline of 01.01.2020 and 01.01.2021 already set for the enhancement of capital up to Rs 2bn and Rs 2.5 bn will be extended until 31.12.2020 and 31.12.2021, respectively.
    3. Defer the enhancements of minimum capital adequacy requirements due by LFCs/SLCs on 01.07.2020 and 01.07.2021, for a further period of one year until 01.07.2021 and 01.07.2022 respectively.
    4. Relax deadlines on submission of statutory returns by permitting all LFCs/SLCs to submit statutory returns to the Department of Supervision of Non-Bank Financial Institutions within two weeks of the commencement of normal business operations.
  • The Central Bank has directed Licensed Commercial Banks and the National Savings Bank to suspend the following for three months commencing from 19.03.20:
    1. Suspend facilitating importation of Motor Vehicles.
    2. Suspend facilitating importation of non-essential goods specified in Banking Act Directions No.01 of 2020, under Letters of Credit, Documents Against Acceptance and Advance Payment.
    3. Suspend the purchase of Sri Lankan Sovereign Bonds by licensed Sri Lankan banks.
  • The Central Bank has also placed limitation on the issuance of foreign currency travel notes by Authorized Dealers.
  • The government has decided to suspend foreign exchange controls and taxes relating to inflows of foreign exchange for a period of 3 months commencing from 02.04.2020. The Central Bank has also announced that such forex remittances will be protected under banking secrecy provisions. The opening and maintaining of a “Special Deposit Account” in the form of Term deposits in specified foreign currencies or Sri Lankan Rupees was announced via Extraordinary Gazette No.2170/4 dated 08.04.20 in this connection.
  • The Monetary Board of the Central Bank of Sri Lanka by Monetary Law Act Order No.1/2020 dated 27.04.2020 has imposed a maximum interest rates on pawning advances granted by licensed commercial banks and licensed specialized banks.
  • The government by Extraordinary Gazette No.2169/3 dated 02.04.20 [Order under Section 22 of the Foreign Exchange Act No.12 of 2017] has placed certain restrictions (subject to the exceptions stated therein) on outward remittances/repatriation of funds for a period of 3 months commencing from 02.04.2020
  • The Securities and Exchange Commission of Sri Lanka (via directive SEC/DG/03/35 dated 31.03.20) has granted a moratorium to the clients of all licensed Stock Brokers and registered Margin Providers from the payment of interest on credit extended to them, which are due during the period commencing 11th March 2020 effective until 30.06.2020.
  • The Securities and Exchange Commission of Sri Lanka (SEC) (via directive SEC/DG/2020/04/08 dated 30th April 2020) has on taking in to consideration the prevailing market conditions and in order to ensure that precautionary measures are in place to eradicate distortion in the S&P SL20 Index has introduced a Three Tiered Circuit Breaker Structure which is to be attached to the S&P SL20 Index. This Three-Tiered Circuit Breaker Structure has been in effect from the date of market re-opening until further notice.
  • The Colombo Stock Exchange (CSE) has via Circular No.03-04-2020 dated 10.04.20 has granted listed companies time extensions for submission of financial statements and has also extended timelines in respect of instituting enforcement action against companies which are non-compliant with certain specific CSE Rules.
    UPDATE: CSE via Circular No. 06-05-2020 dated 14th May 2020 has further extended timelines for submission of financial statements and enforcement actions. But provided that in the event of a listed company being unable to submit Annual Reports or Interim Financial Statements to the CSE on the due dates, such a company is required to make a disclosure to the market.
  • The CSE has also introduced a guidance note on the hosting of annual general meetings in light of the COVID-19 pandemic (Circular No.13-03-2020 dated 27.03.20.)
  • CSE has formulated an additional Guidance Note dated 27th July 2020 on the best practices that may be adopted by listed entities when convening Virtual/Hybrid AGMs.
  • UPDATE: CSE has formulated a Guidance Note Titled “The impact of COVID -19 on Hosting Annual General Meetings” on possible alternative mechanisms that could be adopted in hosting AGMs with a view to circumvent the risks associated with COVID -19 pandemic.

Labour and Employment:



The following measures have been announced by the Presidential Secretariat:


  • Benefits of the “Agrahara Insurance Claim” at the National Insurance Trust Fund, for all state employees in the sectors of Health, Police and Civil Security Forces are to be doubled.
  • Suspend loan repayment deductions from salaries of 1,500,000 public sector employees.
  • Arrangements be made to pay the trainee allowance (for March 2020) of graduates recruited for employment under the graduate employment scheme.
  • Provide relief for private businesses that are not in a position to pay employees’ wages due to the prevailing economic hardships.
  • The Tripartite Taskforce comprising of the Employers' Federation of Ceylon (EFC), the trade union, and the Ministry of Skills Development, Employment and Labour Relations reached a tripartite agreement to pro-rate wages of monthly paid employees in all sectors (Other than industries associated with leisure/hospitality and tourism) based on the varied of levels of deployment of staff owing to the COVID-19 Pandemic, which agreement has now been extended until the 31st of December 2020.

Tax:


  • It has been announced that the payment deadline for Income Tax and VAT has been extended until 31.05.2020. Accordingly, the Department of Inland Revenue has extended the VAT payment deadline (for February and March 2020) up to 30.04.2020 with any system-imposed penalties being waived off accordingly.
  • The Department of Inland Revenue has extended the payment deadline of Compounded Stamp Duty for specified parties (for the quarter ending 31.03.20) up to 31.05.2020.
    UPDATE: BY Notice Dated PN/TC/2020-06 dated 29.10.2020 Compounded Stamp Duty Return for the quarter ending September 30, 2020 has been extended up to the 15th of November 2020.
  • The Department of Inland Revenue has extended the Withholding Tax payment deadline (for February and March 2020) up to 31.05.2020 with any system-imposed penalties being waived off accordingly.
    By Notice No. PN/Tax Returns/2020-02 dated 18.05.2020 further extension of the date for submission of Tax Returns until the 15th of July 2020 has been provided for PAYE, WHT, ESC, VAT, Stamp Duty and VAT on FS Interim Estate.
    In recognizing the approval granted by the Cabinet of Ministers on 24th July 2020 for implementing Tax Relief Measures to facilitate Post COVID 19 Economic Recovery Tax Returns/Statements submission dates have been further extended up to 31st December 2020.
    UPDATE: BY Notice No. PN/TC/2020-06 dated 29.10.2020 VAT on FS First Interim Estimate and Betting and Gaming Levy Return for the second quarter of the year of assessment 2020/2021 has been allowed Additional time until the 20th of November 2020, while Additional time until the 30th of November 2020 has been allowed for filing of Value Added Tax (VAT) return for the month of September (Monthly Return) and quarter ending September 30, 2020 (Quarterly Return).
  • The state-owned retail network -Lanka Sathosa and Co-operative shops will be exempt from VAT, other local taxes and charges.
  • The Department of Inland Revenue has extended the submission deadline of the Transfer Pricing Disclosure Form until 31.05.2020.
    UPDATE: An extension has been allowed for the submission of Transfer Pricing Disclosure Form (TPDF) up to 30th June 2020.
  • The Department of Inland Revenue has also made arrangements for applications for project extensions under Section 22(7) of the VAT Act and applications for permanent and temporary VAT Registration for importation to be made and processed electronically.
  • The Department of Inland Revenue has extended the validity of extension letters issued in respect of the VAT Deferment Facility on Imports at the Customs/BOI until 30.06.2020. The said deadline also applies for temporary VAT registrations which expire prior to this date.
    Validity of extension letters issued in respect of VAT Deferment facility on imports at the Customs/BOI has been further extended until the 31st of July 2020. This further applies for Temporary VAT registrations which expire prior to 31st July 2020. BY Notice dated 30.07.2020 this facility has been further extended to the 31st of August 2020.
    UPDATE: Per Notice dated 06.10.2020 Validity of the last issued extension letters with regard to Credit Vouchers (CV) due against the VAT deferred at the Customs/BOI under deferment facility, has been further extended up to December 31, 2020. Period of validity of Temporary VAT Registration which gets expired prior to December 31, 2020 as per the certificate, has been extended till 31st of December 2020.
  • The Department of Inland Revenue has extended the deadline for the submission of appeals to Tax Appeals Commission in respect of appeal deadlines which fell during the period of 15.03.20-15.05.20.
  • By Notice dated 20.04.2020 of the Inland Revenue Department has announced that APIT (Advanced Personal Income Tax) has replaced PAYE tax with effect from 01.04.2020, on an optional basis. Accordingly, the employers are required to remit APIT by deducting from the remuneration of the resident employees (as per the Inland Revenue Act) compulsorily, unless they are also Citizens per terms of the said Act, in which case their consent must be obtained prior to the said deduction.
    UPDATE: BY Notice dated 11.08.2020 IRD has notified that APIT must be paid on or before 15th August 2020.
  • The Inland Revenue Department has further issued the following notices to taxpayers:
  • By notice dated 12.05.2020 has allowed taxpayers to submit Statement of Estimated Tax (SET) or revised SET after the normalizing of the COVID situation.
  • By notice dated 13.05.2020 ETF Board, Provident Fund and employers who have retained tax on terminal benefits to retiring employees have been provided with an extension of 90 days to remit tax to the Inland Revenue Department. Further where the said 90 days expires on or after 12/03/2020 a further extension until the 30th of June 2020 has been granted taking in to consideration the COVID situation.
    UPDATE: By Notice No. PN/APIT/2020-04 dated 23.11.2020 where the aforesaid 90day period expires on or after 06.10.2020 a further extension until the 31st of December 2020 has been granted.
  • By notice No. PN/PMT/2020/03 dated 14.05.2020 further instructions have been given in respect of Alternate Tax Payment System (ATPS) for tax payments through Online Fund Transfer Facility which has been introduced by the IRD by Notice no. PN/PMT/2020/1 dated 08.04.2020.
    UPDATE: By Notice dated 10.08.2020 further instructions in respect of the Online Fund Transfer Facility has been provided, and particularly notifying that the system will not facilitate Direct Fund Transfers.
  • By Notice No. PN/VAT/2020-08 dated 15.05.2020 Tour Operators registered with the Sri Lanka Tourism Development Authority has been exempt from Value Added Tax with effect from the 1st April 2020.
  • By Notice No. PN/DTR/2020-01 recovery of Taxes in Default by Commercial banks has been suspended until 31st December 2020. By Notice dated 03.07.2020 such recovery of taxes owed by Small and Medium Enterprises has been suspended until the 31st of April 2020.
  • UPDATE: By Notice PN/TC/2020-04 dated 07.10.2020 all Commercial Banks Authorized Dealers engaged in Outward Remittances have been advised to follow the procedure outlined by Notice issued on 08.04.2020 under the reference No. PN/TC/2020-03 in obtaining Tax Clearance Certificates for Outward Remittances.
  • By Notice PN/IT/2020 08 dated 26th October 2020 it has been informed that WHT and AIT will not be deducted from the interest accrued or derived by any person who has opened Term Deposit Accounts titled as Special Deposit Account (SDA) during the period from 8th April 2020 to the 7th October 2020.
  • By Notice PN/T/2020-07 dated 02.11.2020 validity of all VAT Active Certificates (which are expiring on or after October 01, 2020) issued by the Inland Revenue Department to the VAT registered persons are extended until December 31, 2020.
  • By Notice PN/TC/2020-06 dated 29.10.2020 all divisional secretaries and liquor license holders are informed that the validity period of all tax clearance certificates relating to liquor licenses (which will be expired before December 31, 2020) issued by the Inland Revenue Department to the liquor license holders as extended until March 31, 2021.
  • By Notice PN/IT/2020/09 dated 03rd November 2020 the it has been informed that even though the last date to furnish Income Tax Returns for the year of Assessment 2019/2020 is the 30th of November 2020 taking in to consideration the prevailing COVID-19 pandemic situation there will be no penalties levied by the IRA where such Income Tax Return is furnished on or before the 28th of February 2021.
  • By Notice PN/IT/2020-10 dated 10th November 2020 IRD has informed that a facility for Electronically filing a Return of Income for the Year of Assessment 2019/2020 is open for individuals, partnerships and corporate entities.

Miscellaneous:



  • A special bank account (COVID – 19 Healthcare and Social Security Fund”) has been opened by the Presidents Fund into which LKR 100 million has been deposited to be utilized for tasks related to preventing the spread of the Covid-19 including providing necessary healthcare and relief measures.
  • The establishment of a Presidential Task Force to direct, coordinate and monitor the delivery of continuous services for the sustenance of overall community life. The main function of the task force is to ensure the continuous operation of the food supply chain by making arrangements and liaising with all relevant parties including farmers, agriculture officials as well as the banking, corporate and transport sectors.
  • The president has also directed the Presidential Task Force established to administer essential services to make arrangements for the payment of an allowance of LKR5,000/- to specified low-income families/ disadvantaged persons.
  • The establishment of a Presidential Task Force to Task Force for Economic Revival and Poverty Alleviation to inter alia give special attention to the economic and social challenges and opportunities facing Sri Lanka during the Corona pandemic, provide necessary guidance jointly with relevant institutions for a production economy.
  • The establishment of a Presidential Task Force to study and provide instructions on measures to be taken by all armed forces to prevent Coronavirus infection among members of the tri-forces.
  • The President has also instructed the Sri Lanka Ports Authority to provide assistance and relief to all ships calling at Ports of Sri Lanka. Accordingly, it has been announced that all ships have been exempted from demurrage and entry charges.
    UPDATE: Sri Lanka Ports Authority has introduced new formats of procedure for MCC and LCL delivery of Cargo, which is to take effect from 05th May 2020, in order to curb delays occurring in their operations during the COVID – 19 period.
    SLPA has further introduced Electronic Documentation, Electronic Delivery Orders (EDO) and E-Clearance services with effect from 4th May 2020. SAGT (South Asia Gateway Terminal) further offered an additional 31 days of Terminal Storage Free time for General Cargo and 38 days storage free for Unaccompanied Personal Baggage (UPB) containers and it extended lowest charge of storage tier for the duration from 14th April to 7th May.
  • Beneficiaries of the “Samurdhi Relief Programme” (A government assistance programme for disadvantaged persons) are to be issued an interest free advance payment and specific nutritional food items as food aid.
  • A sum of US$5 Million has been pledged as a contribution to the SAARC COVID-19 Emergency Fund
  • The government has also announced that the deadline to pay Utility Bills, Assessment Taxes and Driving License renewal fees will be extended.
  • The government has introduced temporary restrictions on the import of specified goods set out in Schedule 1 of the Imports and Exports (Control) Regulations No. 01 of 2020 published in Extraordinary Gazette No.2171/5 dated 16.04.20 which will be in effect from 16.04.20-15.07.20.
    UPDATE: The said Regulations has been updated by Import and Exports (Control) Regulations No. 02 of 2020 published in Extraordinary Gazette No. 2176/19 dated 21st May 2020 which will come to effect from 22nd May 2020 and accordingly restrictions has been put in place regarding the import of specified goods and payment procedures in respect of the same set out in Schedules I and II to the said regulations
    Further Amendments has been introduced to the Regulations No. 2 stated above by Regulations No. 3 of 2020 published in the Gazette Extraordinary No. 2182/10 dated 30th June 2020 and effective only for import of goods loaded on or after 30th June 2020 at the loading port (except for goods in respective of regulation No. 8 (d) thereof). Regulations No. 4 of 2020 published in gazette Extraordinary No. 2184/21 has been made effective for the import of goods loaded on or after the 17th of July 2020 and until 17th August 2020. The time period for submission of Goods Received Notice (GRN) has been specified by the Regulation No. 6 of 2020 published in Gazette Extraordinary No. 2189/05 with effect from 18th of August 2020. Regulations No. 5 of 2020 (published in Gazette Extraordinary No. 2189/04) effective from 18th of August 2020 until further notice.
    UPDATE: By Imports and Exports Control Regulation No 07 of 2020 published in Gazette Extraordinary No. 2193/09 with effect from 15th September 2020 and Regulation No. 08 of 2020 published in Gazette Extraordinary No. 2198/02/ dated 19th October 2020 import restrictions placed on certain items (including Apparel) published in Gazette Extraordinary No. 2184/21 has been relaxed.
  • The government has issued PS/GPA/Circular/20/20 dated 18.04.20 which sets out (health and safety) guidelines to be followed by all government offices upon resuming work during the COVID-19 pandemic.
    government has issued PS/GPA/Circular/20/20 dated 18.04.20 which sets out (health and safety) guidelines to be followed by all government offices upon resuming work during the COVID-19 pandemic.
  • In view of the second wave of COVID-19 situation the President has instructed that the following measures be implemented to curb the spread of COVID 19 without disrupting public life and economy. Accordingly;
    1. Self-quarantine process to be strictly monitored.
    2. Those under self-quarantine to be subjected to PCR tests after 10 days
    3. Goodie pack worth Rs. 10,000 for those under self-quarantine
    4. Distribution of essential goods in curfew areas/ isolated areas in the same manner as earlier
    5. Measures to restrict economic centers to wholesale trade
  • A special Project called “Stay -Safe” digital devised under the guidance of the Information and Communication Technology Agency in Sri Lanka as a solution for tracing close associates of COVID infected and the movements of the disease carriers, which is based on a QR code has been put into effect as of the 7th November 2020.


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