Overview of the SSCL Amendments (Effective July 1, 2026)
- The registration threshold for SSCL has been reduced: now Rs. 9 million per quarter (was Rs. 15 million), or Rs. 36 million over four consecutive quarters (was Rs. 60 million). (ird.gov.lk)
- Import exemption for motor vehicles has been terminated. Now all vehicle imports are subject to SSCL from May 1, 2026. However, wholesale and retail sale of motor vehicles is exempted under Part IB from that same date. (ird.gov.lk)
Compliance Implications for Businesses
- Businesses previously not required to register may now cross thresholds and must register and file SSCL returns. Non-registration or late registration can result in penalties.
- Importers of vehicles will need to calculate SSCL at point of import, altering cost base and pricing.
- Retailers might benefit from exemption in wholesale/retail arms, but must ensure wholesale or retail license and appropriate schedule applies.
Actionable Steps for Affected Taxpayers
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Monitor turnover closely • Track quarterly and rolling four-quarter turnover to see if registration is triggered.
• Turnover projections help avoid surprise liabilities. -
Adjust costing and pricing • For importers: recalculate landed cost including SSCL charge. • Pass through costs (if possible) in pricing.
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Ensure correct classification • Wholesale or retail sale exemption applies only under specific legal schedule (Part IB). Review whether your operations fall under that classification.
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File required returns & keep records • Registered persons must file SSCL returns timely. • Document import declarations, invoices, proof of business classification.
Example
ABC Motors Ltd: imported vehicles to Sri Lanka with annual imports value of Rs. 100 million. Under old threshold, not SSCL registered. Now as imports alone, SSCL is due at import; wholesale branch exempt, but retail sales must consider whether applicable.
- They must register, pay SSCL on imports and document wholesale/retail segregation. Pricing adjusted accordingly.
Summary: The 2026 SSCL changes significantly expand coverage and liabilities. Monitoring turnover, registering timely, and ensuring correct schedules/exemptions are applied are crucial to avoid penalties.