Income tax law applicable to superannuation funds to be amended

The Cabinet of Ministers had approved a proposal to change the income tax law applicable to superannuation funds, Cabinet spokesman Bandula Gunawardena told the media on Tuesday.

Addressing the media, Minister Gunawardena said the Income Tax Act of 2018 would be amended to change the rate levied on the income earned, through investing in Treasury bonds by funds such as the Employees’ Provident Fund, Employees’ Trust Fund, Pension Fund or Gratuity Fund and similar funds to facilitate the local debt optimization process.

Sri Lanka announced a suspension of foreign debt repayments in April 2022, when it was hit by its worst financial crisis since independence.

The Cabinet approved on June 28 a plan for domestic debt restructuring.

Sri Lanka has already undertaken to restructure its external debt in keeping with the programme, formulated with the International Monetary Fund. (RK)