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Sri Lanka Launches VAT Refund Counter for Tourists at BIA

Friday, 04 July 2025 - 5:53 pm

A dedicated VAT refund facility for tourists was officially launched today (04) at the Bandaranaike Inte ational Airport (BIA) by Minister of Industries and Entrepreneurship Development Sunil Handunneththi and Minister of Labour and Deputy Finance Minister Anil Jayantha.

This new service, established by the Inland Revenue Department, allows eligible foreign tourists to claim back the Value Added Tax (VAT) paid on purchases made during their stay in Sri Lanka. The initiative stems from a policy proposal submitted to the President on March 14, 2025, by officials of the Gem and Jewellery Authority and the Ministry of Industries.

To qualify for a refund, tourists must have spent over 90 days in Sri Lanka and paid VAT exceeding Rs. 50,000.

The move aims to incentivize the purchase of Sri Lankan products by inte ational visitors and improve the efficiency of tax collection. Officials highlighted that this step is expected to boost both the local retail sector and tourism.

Gem and Jewellery Authority Chairman Navin Suriyarachchi and representatives from the Inland Revenue Department were also present at the launch. A media briefing will soon be held to raise awareness among local businesses and tourism stakeholders