Compendium of law
Types of taxes in Sri Lanka mainly includes excise duties, value added tax, income tax, and tariffs. These taxes are mainly of two types in the forms of direct taxes and indirect taxes. 89% of Government revenue source is by way of taxes. The tax revenue to GDP ratio is just about 11.6 percent as of 2018
74% of tax revenue is from indirect taxes in the forms of excise duties, VAT and tariffs, while direct taxes including income tax, Pay-as-you-earn tax and Economic Service Charge contribute only around 9%
*Sri Lanka tax regime is expected to witness major changes following the 2019 Sri Lankan presidential election held in November 2019
In November 2019, newly elected President approved mandate to abolish taxes such as PAYE, NBT, Withholding tax, Capital Gain tax, Bank Debit tax and VAT
Sri Lanka has established a complex system of laws and institutions intended to protect the interests of workers and to guarantee a minimum standard of living to its population.
This system encompasses three bodies of law
1. Labor and employment laws; govern the individual employment contract
2. Industrial and collective relations laws; regulate the bargaining, adoption, and enforcement of collective agreements, the organization of trade unions, and the industrial action by workers and employers
3. Social security laws; social response to needs and conditions that have a Significant impact on the quality of life, such as old age, disability, death, unemployment, and maternity .
The Department of Labour of the Ministry of Labour and Vocational Training is responsible for the administration and enforcement of all labour laws. The Department has powers of conciliation in industrial disputes and can refer such disputes to compulsory arbitration where necessary.
The Sri Lankan industrial law consists of inter alia about forty labour statutes, regulations gazetted under the labour statutes, decisions made by the Labour Courts and the Appellate Courts, collective agreements
COMPANIES ACT, No. 07 OF 2007
AN ACT TO AMEND AND CONSOLIDATE THE LAW RELATING TO COMPANIES
BE it enacted by the Parliament of the Democratic Socialist
Republic of Sri Lanka as follows :-
1. This Act may be cited as the Companies Act, No. 07 of 2007.
1. The provisions of this Act shall come into operation on such date (hereinafter referred to as the “appointed date”) as the Minister may appoint, by Order published in the Gazette.
COMPANIES ACT – EASY REFERNCE:
EXCHANGE CONTROL REGULATIONS
Dealings in gold, foreign currency and securities in Sri Lanka is regulated by the Exchange Control Act. Central Bank of Sri Lanka is empowered to carry out the provisions of the Act.
The powers, duties or functions conferred on the Central Bank are exercised or performed by the Controller of Exchange, subject to the direction and control of the Governor of the Central Bank.
Accordingly the Controller of Exchange has issued several circulars, rules, notifications, orders and directions and, subject to the above instruments, delegated powers to authorized dealers to approve certain transactions on his behalf. There have been numerous amendments made to the several instruments issued by the Controller.
Source: Central Bank of Sri Lanka
Roman – Dutch Law is the foundation of the law of property, but it has been greatly amended by legislation and local custo