PARLIAMENT OF THE DEMOCRATIC

SOCIALIST REPUBLIC OF
SRI LANKA

FINANCE ACT, No. 35 OF 2018

[Certified on 01st of November, 2018]

Printed on the Order of Government

Published as a Supplement to Part II of the Gazette of the Democratic

Socialist Republic of Sri Lanka of November 02, 2018

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This Act can be downloaded from www.documents.gov.lk

 Finance Act, No. 35 of 2018 1

[Certified on 01st of November, 2018]

L.D.—O. 22/2017

AN ACT TO AMEND THE FINANCE ACT, NO. 25 OF 2003, THE FINANCE

ACT, NO. 5 OF 2005, THE FINANCE ACT, NO. 12 OF 2012, THE
FINANCE ACT, NO. 16 OF 1995, AND THE FINANCE ACT, NO. 10 OF
2015; AND TO PROVIDE FOR THE IMPOSITION OF LUXURY TAX ON
MOTOR VEHICLES, VEHICLE ENTITLEMENT LEVY, ANNUAL COMPANY
REGISTRATION LEVY, DEBT REPAYMENT LEVY, CARBON TAX,
CELLULAR TOWER LEVY AND MOBILE SHORT MESSAGE SERVICE
LEVY; AND TO PROVIDE FOR MATTERS CONNECTED THEREWITH AND
INCIDENTAL THERETO.

BE it enacted by the Parliament of the Democratic Socialist

Republic of Sri Lanka as follows:–

1. This Act may be cited as the Finance Act, No. 35 of Short title.
2018.

PART I

AMENDMENT OF PART II OF THE FINANCE ACT, NO. 25 OF 2003

2. Part II (Imposition of Tourism Development Levy) Amendment of

section 11 of
of the Finance Act, No. 25 of 2003 (hereinafter in this Part
Act, No. 25 of
referred to as the “principal enactment”) is hereby amended 2003.
in section 11—

(1) by the renumbering of section 11 as subsection (1)

thereof;

(2) in the second proviso of renumbered subsection

(1) by the substitution for the words “rupees three
million” of the words “rupees three million, for the
period ending on December 31, 2018.”;
2 Finance Act, No. 35 of 2018

(3) by the insertion immediately after the second

proviso to that subsection of the following new
proviso:—

“Provided further, from and after January 1,

2019, such levy shall be charged from any
institution having an annual turnover of not
exceeding rupees twelve million or a quarterly
turnover not exceeding rupees three million at
the rate of 0.5 per centum on such turnover of
such institution.”;

(4) by the insertion immediately after renumbered

subsection (1), of the following new subsection:—

“(2) From and after January 1, 2019, there

shall be levied from every institution licensed
under the Tourism Act, No. 38 of 2005 a levy of
one per centum on the turnover of such
institutions in any year, to be called the Tourism
Development Levy:

Provided however, such levy shall not be

charged on the commission carried on the sale of
airline tickets from Travel Agents including
General Sales Agents licensed under the Tourism
Act, No. 38 of 2005:

Provided further, such levy shall be charged

from any institution having an annual turnover
of not exceeding rupees twelve million or a
quarterly turnover not exceeding three million,
at the rate of 0.5 per centum on such turnover of
such institution.”; and

(5) by the repeal of the marginal note of that section

and the substitution therefor of the following:—

“Imposition of Levy on institutions, licensed under

Tourism Development Act and Tourism Act”.
 Finance Act, No. 35 of 2018 3

3. Section 12 of the principal enactment is hereby Amendment of

amended by the repeal of subsection (2) thereof and the section 12 of the
principal
substitution therefor, of the following subsections:—
enactment.

“(2) The Director General of the Ceylon Tourist

Board shall—

(a) retain the levy so collected under subsection

(1), other than the levy collected from the
online travel agents licensed under the
Tourism Act, No. 38 of 2005 and the levy
collected at the rate of 0.5 per centum under
section11; and

(b) remit the levy collected from the online

travel agents licensed under the Tourism
Act, No. 38 of 2005 and the levy collected
at the rate of 0.5 per centum ander section11,
to the Cosolidated Fund.

(3) The Director General of the Ceylon Tourist

Board shall furnish such returns in such manner as
may be prescribed in that behalf to the Deputy
Secretary to the Treasury, within thirty days of the
date on which such amount is collected.”.

PART II

AMENDMENT OF PART II OF THE FINANCE ACT, NO. 5 OF 2005

4. Part II (Imposition of Share Transaction Levy) of the Amendment of

Finance Act, No. 5 of 2005, is hereby amended in section 7 section 7 of Act,
No. 5 of 2005.
thereof, by the repeal of paragraph (b) thereof and the
substitution therefor of the following paragraphs:—

“(b) for any period commencing on or after January 1,

2011, but prior to January 1, 2016, at the rate of 0.3
per centum; and

(c) for any period commencing on or after April 1,

2016, at the rate of 0.3 per centum,”.
 4 Finance Act, No. 35 of 2018

PART III

AMENDMENT OF PART III OF THE FINANCE ACT, NO. 5 OF 2005

Amendment of 5. Part III (Imposition of Construction Industry

section 13 of Guarantee Fund Levy) of the Finance Act, No. 5 of 2005
Act, No. 5 of
2005. (hereinafter in this Part referred to as the “principal
enactment”) is hereby amended in subsection (1) of section
13, by the substitution for the words “for every year
thereafter,” of the words and figures “for every year thereafter
until December 31, 2015,”.

Amendment of 6. Section 13A of the principal enactment is hereby

section 13A of amended in subsection (1), by the substitution for the words
the principal
enactment. and figures “any payment on or after April 1, 2009 to any
construction contractor or sub-contractor,” of the words and
figures “any payment on or after April 1, 2009 but prior
to January 1, 2016 to any construction contractor or
sub-contractor,”.

Retrospective 7. The amendments made to the principal enactment

effect.
by this Part of this Act, shall be deemed for all purposes to
have come into force on January 1, 2016.

PART IV

AMENDMENT OF PART IV OF THE FINANCE ACT, NO. 12 OF 2012

Amendment of 8. Part IV (Exemption from Application of the

section 18A of provisions of Customs Ordinance (Chapter 235), Exchange
Act, No. 12 of
2012. Control Act (Chapter 423) and the Imports and Exports
(Control) Act, No. 1 of 1969) of the Finance Act, No. 12 of
2012, (hereinafter in this Part referred to as the “principal
enactment”) is hereby amended in subsection (1) of section
18A thereof, by the substitution for the words “any enterprise
engaged in” of the words “enterprises or certain enterprises
as specified in that Schedule engaged in”.
 Finance Act, No. 35 of 2018 5

9. The Schedule to the principal enactment is hereby Amendment of

amended, by the substitution for item 1 thereof, of the the Schedule to
the principal
following item:— enactment.

“1. Value Added Tax Act, No. 14 of 2002 (other than

an enterprise which carries out activities which are
treated as zero rated activities within the meaning
of the provisions of Value Added Tax Act and for
which the provisions of paragraph (e) of subsection
(2) of section 2 of the said Act are applicable on
local purchase of goods or services under Simplified
Value Added Tax Scheme referred to in that
paragraph);”.

10. The amendments made to the principal enactment Application of

by this Part of this Act shall come into operation on the date the provisions of
this part.
of commencement of this Act.

PART V

AMENDMENT OF PART II OF THE FINANCE ACT, NO. 16 OF 1995

11. The Finance Act, No. 16 of 1995 (hereinafter in this Amendment of

Part, referred to as the “principal enactment”) is hereby section 3 of Act,
No. 16 of 1995.
amended in subsection (1) of section 3 thereof, by the
substitution for the words “every luxury motor vehicle
(other than a semi- luxury dual purpose motor vehicle or a
wagon)-” of the words and figures “every luxury motor
vehicle (other than a semi-luxury dual purpose motor vehicle
or a wagon) of which the first year of registration falls prior
to January 1, 2019-”.

12. Section 4 of the principal enactment is hereby Amendment of

amended in subsection (1) thereof, by the substitution for section 4 of the
principal
the words “every semi-luxury motor vehicle (other than a enactment.
semi-luxury dual purpose motor vehicle or a wagon)-”
of the words and figures “every semi-luxury motor vehicle
(other than a semi-luxury dual purpose motor vehicle or a
wagon) of which the first year of registration falls prior to
January 1, 2019-”.
 6 Finance Act, No. 35 of 2018

Amendment of 13. Section 5 of the principal enactment is hereby

section 5 of the
principal amended in subsection (1) thereof, by the substitution for the
enactment. words “every semi-luxury dual purpose motor vehicle (other
than a wagon)-” of the words and figures “every semi-luxury
dual purpose motor vehicle (other than a wagon) of which the
first year of registration falls prior to January 1, 2019.”.

Amendment of 14. Section 8 of the principal enactment is hereby

section 8 of the
principal amended in subsection (1) thereof, by the substitution for
enactment. the words “any specified motor vehicle” of the words and
figures “any specified motor vehicle, of which the payment
due date of the levy falls prior to January 1, 2019,”.

Amendment of 15. Section 8A of the principal enactment is hereby

section 8A of
the principal amended by the substitution for the words “any specified
enactment. motor vehicle” of the words and figures “any specified motor
vehicle, of which the payment due date of the levy falls
prior to January 1, 2019,”.

Insertion of new 16. The following new section is hereby inserted

section 8B in the
principal
immediately after section 8A and shall have effect as section
enactment. 8B of the principal enactment:—

“Levy to be 8B . (1) Every Divisional Secretary who

collected at
the time of
renews an annual revenue licence in respect of
renewal of any specified motor vehicle of which the
registration. payment due date of the levy falls on or after
January 1, 2019, shall, at the time of renewing
the annual revenue licence, collect from the
registered owner of such motor vehicle an
amount equal to such levy and remit the
amount so collected to the Commissioner-
General who shall credit the same to the
Consolidated Fund.
 Finance Act, No. 35 of 2018 7

(2) Every Divisional Secretary who collects

the levy under subsection (1) shall send a
monthly report to the Commissioner-General
in such form and containing such particulars
as may be specified by the Commissioner-
General in respect of the levy so collected and
remitted to the Consolidated Fund.

(3) Every Divisional Secretary who collects

the levy in accordance with the provisions of
subsection (1), shall duly acknowledge the
receipt of the levy so collected, in such manner
as may be specified by the Commissioner-
General.

(4) Any levy so collected by any Divisional

Secretary in accordance with the provisions of
subsection (1), shall be deemed to have been
paid by such registered owner to the
Commissioner-General on the date on which
such Divisional Secretary collected such
levy.”.

PART VI

AMENDMENT OF THE FINANCE ACT, NO. 10 OF 2015

17. Part VII (Mansion Tax) of the Finance Act, No. 10 Repeal of
Part VII of Act,
of 2015 (hereinafter in this Part referred to as the “principal No. 10 of 2015.
enactment”) is hereby repealed.

18. Part IX (Motor Vehicle Importers Licence Fee) of Repeal of Part

the principal enactment is hereby repealed, with effect from IX of the
principal
January 1, 2016. enactment.
 8 Finance Act, No. 35 of 2018

PART VII

IMPOSITION OF LUXURY TAX ON MOTOR VEHICLES

Imposition of 19. There shall be charged, a tax to be called the

Luxury Tax on “Luxury Tax” (hereinafter in this Part referred to as “the
motor vehicles.
tax”) on every specified motor vehicle of which the first
year of registration falls on or after the date, and at the rates,
as may be prescribed by regulations made under this Act.

Collection of 20. (1) The tax payable under section 19 on any

tax at the time specified motor vehicle imported into Sri Lanka on or after
of importation.
the date prescribed under section19, shall be paid to the
Director-General of Customs, by the person importing such
vehicle, at the time of removing the vehicle from Sri Lanka
customs, together with the import duties payable in respect
of such vehicle in terms of any written law.

(2) The provisions of the Customs Ordinance (Chapter

235) applicable for the collection and recovery of any
Customs Duty, shall, mutatis mutandis, apply for the
collection and recovery of the tax under this section.

Collection of tax 21. (1) The tax payable under section 19 on any
at the time of specified motor vehicle imported into Sri Lanka prior to the
registration.
date prescribed under section 19, or assembled in Sri Lanka
shall be paid by the registered owner of such vehicle to the
Commissioner-General at the time of issuing the first
Certificate of Registration in respect of such vehicle.

(2) The Commissioner-General shall remit the tax

collected under subsection (1) to the Consolidated fund.

Certain vehicles 22. Nothing in this Part shall apply to any specified
to be exempted motor vehicle providing services to a Diplomatic Mission
from the
payment of the of any State within the meaning of the Diplomatic Privileges
tax. Act, No. 9 of 1996 or to an International, Multilateral or
Bilateral Organization recognized in terms of that Act.
 Finance Act, No. 35 of 2018 9

23. In this Part of this Act, unless the context otherwise Interpretation.
requires–

“Commissioner General” means the Commissioner

General of Motor Trafic appointed under the
Motor Traffic Act (Chapter 203);

“Director- General of Customs” means the Director-

General of Customs appointed under section
2 of the Customs Ordinance (Chapter 235);

“specified motor vehicle” means any assembled or

unassembled diesel motor vehicle of which
the cylinder capacity exceeds 2,300 CC or a
petrol motor vehicle of which the cylinder
capacity exceeds 1,800 CC or an electric
vehicle of which motor power of the engine
exceeds 200 Kw, but shall not include a dual
purpose petrol motor vehicle the cylinder
capacity of which does not exceed 2,200 CC,
dual purpose electric motor vehicle, a van, a
single cab or a wagon.

PART VIII

IMPOSITION OF VEHICLE ENTITLEMENT LEVY

24. There shall be charged with effect from January 1, Imposition of

2016, a levy to be called the “Vehicle Entitlement Levy” Vehicle
Entitlement
(hereinafter in this Part referred to as “the levy”) from every Levy.
importer of motor vehicles, who imports a motor vehicle
specified in the First Schedule hereto, at the respective rates
set out in that Schedule for each category of vehicle identified
under the harmonized commodity description and coding
system numbers:

Provided however, an importer of vehicle who imports

such vehicle in unassembled form shall not be liable to pay
the levy.
 10 Finance Act, No. 35 of 2018

Collecting the 25. (1) The Levy payable for any period commencing
levy for the on January 1, 2016 but ending prior to January 1, 2019 shall
period
commencing have been collected by the bank at which the Letter of Credit
from January 1, in respect of the vehicle imported is opened, at the time of
2016 to January
1, 2019.
opening such Letter of Credit and shall be remitted in the
manner specified in subsection (2) by such bank to the
Commissioner-General.

(2) The levy collected by the bank within the period

Commencing–

(a) on the 1st day of any month to the 15th day of that
month shall have been remitted on or before the
end of that month; and

(b) on the 16th day of any month to the end of that

month shall have been remitted on or before the
15th day of the succeeding month,

to the Commissioner-General.

(3) Every bank which remit the levy in terms of the

preceding provisions of this section shall, submit a statement
setting out the following, to the Commissioner-General:—

(a) the name and address of each importer relating to

each remittance;

(b) category of the vehicle;

(c) value of the Letter of Credit;

(d) amount collected; and

(e) any other details as may be required by the

Commissioner-General, from time to time.
 Finance Act, No. 35 of 2018 11

(4) Any bank which collects the levy from any importer
shall issue a copy of the Letter of Credit to such importer
certifying that the levy has been paid. Any vehicle imported
on a Letter of Credit opened on or after January 1, 2016
shall not be allowed to be removed from the Sri Lanka
Customs, unless the importer submits the copy of the Letter
of Credit which is endorsed by the bank.

(5) In any event where the Letter of Credit is cancelled

and a refund being requested by the importer who has paid
the levy on such Letter of Credit, prior to the remittance of
such levy to the Commissioner-General, the bank may refund
the levy so paid.

26. (1) The levy payable under section 24 for any period Collecting the
levy for any
commencing on or after January 1, 2019, on any vehicle in period
respect of which the Letter of Criedit has been opened on or commencing on
or after
after January 1, 2019 and imported into Sri Lanka, shall be January1, 2019.
paid by the importer of the vehicle to the Director-General
of Customs, at the time of removing the vehicle from Sri
Lanka Customs together with the import duties payable in
respect of such vehicle in terms of any written law.

(2) Upon payment of the levy, the Director-General of

Customs shall issue a certificate called “Vehicle Entitlement
Certificate” in the form as may be prescribed, by regulations
made under this Act.

(3) The provisions of the Customs Ordinance (Chapter

235) which apply for the collection and recovery of any
customs duty, shall, mutatis mutandis, apply for the
collection and recovery of the levy under this Part.
 12 Finance Act, No. 35 of 2018

Certain vehicles 27. Nothing in this Part shall apply to any vehicle
to be exempted
from the
imported to Sri Lanka for providing services to a Diplomatic
payment of the Mission of any State within the meaning of the Diplomatic
levy. Privileges Act, No. 9 of 1996 or to an International,
Multilateral or Bilateral Organization recognized in terms
of that Act.

Validation. 28. Where a levy of such amount under section 24 has

been collected by a bank on behalf of the Commissioner
General, in terms of this Part of this Act, during the period
commencing on January 1, 2016, and ending on the date of
the commencement of this Act, from any person who imports
a motor vehicle, such collection shall be deemed for all
purposes to have been, validly made, and the bank and the
Commissioner General are hereby indemnified against all
action civil or criminal, in respect of such collection.

Amendment of 29. The Parliament may by resolution amend the rates

the rates of the
levy by of the levy payable under section 24 and set out in the First
resolution of
Parliament. Schedule hereto.

Interpretation. 30. In this Part of this Act, unless the context otherwise
requires–

“bank” means a licensed commercial bank within

the meaning of the Banking Act, No. 30 of
1988;

“Commissioner-General”means the Commissioner

General of Inland Revenue appointed or
deemed to be appointed under the Inland
Revenue Act, No. 24 of 2017;

“Director General of Customs” means the Director

General of Customs appointed under section
2 of the Customs Ordinance (Chapter 235).
 Finance Act, No. 35 of 2018 13

PART IX

ANNUAL COMPANY REGISTRATION LEVY

31. (1) There shall be charged and levied for the year Imposition of
Annual
commencing on January 1, 2016, and ending on December Company
31, 2016 from every company incorporated or registered Registration
under the Companies Act, No. 7 of 2007, a levy to be called Levy.

“Annual Company Registration Levy” (hereinafter in this

Part reffered to as “the levy”) at the respective rates as
specified for each category of Company in the Second
Schedule:

Provided however, the provisions of this section shall

not apply to-

(a) an off-shore company; and

(b) a company limited by guarantee.

(2) The levy shall be collected by the Registrar of

Companies from every relevant company on or before
December 31, 2019 and be remitted to the Consolidated
Fund.

(3) The provisions which may be necessary for the

implementation of the provisions of this Part shall be
prescribed by regulations made under this Act.

32. Notwithstanding anything to the contrary in the Certain

companies to be
provisions of section 31, any company which is incorporated
exempted from
under the Companies Act, No. 7 of 2007, within the period payment of the
commencing on January 1, 2016 and ending on December levy.

31, 2016 shall not be liable to pay the levy.

 14 Finance Act, No. 35 of 2018

Default in 33. (1) Any company which fails to pay the levy as
payment of the
levy.
provided for in section 31, shall be deemed to be a defaulter
under this Act.

(2) The provisions of section 34 shall apply to, and in

ralation to, the prosecution against any such defaulter and
for the recovery of such levy.

Recovery of the 34. (1) Where the amount of the levy or part thereof is
Levy in default.
in default, the Registrar of Companies shall issue a certificate
containing particulars of the amount in default and the name
and address of the company, to the Magistrate having
jurisdiction over such place.

(2) The Magistrate shall thereupon summon the defaulter

to show cause why proceedings for the recovery of the
amount of the levy in default shall not be taken against him.

(3) If sufficient cause is not shown by the defaulter, the

amount of the levy in default shall be recovered by Order of
the Magistrate, as if it was a fine imposed by the Magistrate
on such defaulter, and when recovered be remmitted to the
Registrar of Companies to be credited to the Consolidated
Fund.

Validation. 35. Where a levy of such amount under section 31 has

been collected for the period specified in that section by the
Registrar of Companies, in terms of this Part of this Act,
during the period commencing on January 1, 2016, and
ending on the date of the commencement of this Act, from
any company incorporated or registered under the Companies
Act, No. 7 of 2007, such collection shall be deemed for all
purposes to have been, validly made, and the Registrar of
Companies is hereby indemnified aganint all action civil or
Criminal, in respect of such collection.
 Finance Act, No. 35 of 2018 15

PART X

DEBT REPAYMENT LEVY

36. (1) There shall be charged and levied for every Imposition of
Debt Repayment
month commencing on October 1, 2018 but ending on Levy.
December 31, 2021, from every financial institiution, a levy
of 7 per centum to be called the “Debt Repayment Levy”
(hereinafter in this Part referred to as “the levy”) on the value
addition attributable to the supply of financial services by
each such institution.

(2) For the purposes of this section the value addition

attributable to the supply of financial services sahll be
calculated based on the provisions specified in section 25C
of the Value Added Tax Act, No. 14 of 2002.

(3) The amount of the operating profit or loss of the

financial institution considered for calculating the value
addition attribuable to the supply of financial services under
this section, shall be the amount of the profit or loss of such
financial institution prior to deducting the tax payble under
this section, the value Added tax payble under section 25A
of the Value Added Tax Act, No. 14 of 2002 and the Nation
Building Tax payable under paragraph (iii) of subsection
(2) of the Nation Building Tax Act, No. 9 of 2009.

(4) The levy for every month shall be remitted to the

Commissioner-General, along with a value addition
statement in respect of such remittance on or before the
twentieth day of the month succeeding the relevant month.

(5) A financial institution shall in respect of each financial

year of such financial institution furnish a return in the form
specified by the Commissioner-General within a period of
six months from the end of that financial year.

37. The Minister may, having regard to the economic exemption from
development of the country, by Order published in the the Default in
payment of the
Gazette, exempt any transaction of a financial institution levy.
 16 Finance Act, No. 35 of 2018

specified in such Order, from the payment of the levy payable

under this Part, subject to such condition as may be specified
in such Order.

Default in 38. (1) Where any financial institution, which is liable

payment of the to pay the levy under this Part fails to pay the levy as provided
Levy.
for in section 36, such financial institution shall be deemed
to be a defaulter under this Act.

(2) The provisions of Chapter IX, Chapter XI, Chapter

XII, Chapter XIII, Chapter XIV, Chapter XV, Chapter XVI,
Chapter XVII and Chapter XVIII of the Inland Revenue Act,
No. 24 of 2017 shall, mutatis mutandis, apply to, and in
relation to, any such defaulter.

Interpretation. 39. In this Part of this Act, unless the context otherwise
requires—

“Commissioner-General” means the Commissioner-

General of Inland Revenue appointed or deemed to
be appointed under the Inland Revenue Act, No. 24
of 2017;

“financial institution”means—

(a) a licensed commercial bank or a licensed

specialized bank within the meaning of the
Banking Act, No. 30 of 1988;

(b) a finance company licensed under the

Finance Business Act, No. 42 of 2011.

PART XI

CARBON TAX

Imposition of 40. (1) There shall be levied for every year commencing
Carbon Tax. from January 1, 2019, from the registered owner of every
motor vehicle specified in the Third Schedule hereto, a tax
to be called the “Carbon Tax” (hereinafter in this Part referred
to as “the tax”) at such rates as may by specified in that
Schedule.
 Finance Act, No. 35 of 2018 17

(2) The tax imposed under subsection (1) shall not apply
for any electric vehicle.

41. (1) The registered owner of any relevant vehicle Registered

shall pay the tax for every year, other than for the first year of owner to pay the
tax.
registration of such motor vehicle, to the Divisional Secretary,
on or before the due date of renewal of annual registration.

(2) Every Divisional Secretary who collects any amount

in accordance with the provisions of subsection (1) shall
duly acknowledge the receipt of the tax so collected and
remit such amount to the Commissioner-General, in such
manner as may be prescribed.

(3) The provisions which may be necessary for the

implementation of the provisions of this Part and collection
of the tax shall be prescribed by regulations made under this
Act.

42. The Parliament may by resolution amend the rates Amendment of

of the tax payable under section 40 and set out in the Third the rates of the
tax by resolution
Schedule hereto.
of Parliament.

43. In this Part of this Act, unless the context otherwise Interpretation.
requires—

“Commissioner-General” means the Commissioner-

General of Motor Traffic appointed under the Motor
Traffic Act (Chapter 203).

PART XII

CELLULAR TOWER LEVY

44. (1) There shall be levied for every year commencing Imposition of
from January 1, 2019, from every mobile telephone operator Cellular
Tower Levy.
who owns a cellular tower, a levy to be called the “Cellular
Tower Levy” (hereinafter in this Part referred to as “the levy”)
of rupees two hundred thousand per annum for each cellular
tower.
 18 Finance Act, No. 35 of 2018

(2) The levy shall be paid by such mobile telephone

operator, to the Telecommunication Regulatory
Commission (hereinafter in this Part referred to as “the
Commission”) in four equal instalments, respectively as
follows:—

(a) first instalment on or before the fifteenth day of

April of the relevant year;

(b) second instalment on or before the fifteenth day of

July of the relevant year;

(c) third instalment on or before the fifteenth day of

October of the relevant year;

(d) fourth instalment on or before the fifteenth day of

January of the year succeeding the relevant year.

(3) (a) The levy payable under subsection (1) in respect

of any cellular tower not owned by any mobile telephone
operator, shall be paid by the mobile telephone operator
who uses the cellular tower.

(b) Where the cellular tower is used by more than one

mobile telephone operator, the levy shall be paid by such
mobile telephone operators in equal shares.

(4) The Commission shall remit the amount of the levy so

collected to the Consolidated Fund within fifteen days from
the date of collection.

Default in 45. (1) Any mobile telephone operator who fails to pay
payment of the the levy as provided for in section 44, shall be deemed to be
levy.
a defaulter under this Act.

(2) The Provisions of section 46 shall apply to, and in

relation to the prosecution against any such defaulter and
for the recovery of such levy in default.
 Finance Act, No. 35 of 2018 19

46. (1) Where the amount of the levy or part thereof is Recovery of the
in default, the Commission shall issue a certificate containing levy in default.
particulars of the amount in default, the name and the address
of the last known place of residence or business of the
defaulter, to the Magistrate having jurisdiction over such
place.

(2) The Magistrate shall thereupon summon the defaulter

to show cause why proceedings for the recovery of the
amount of the levy in default shall not be taken against him.

(3) If sufficient cause is not shown by the defaulter, the

amount of the levy in default shall by Order of the Magistrate
be recovered as if it was a fine imposed by the Magistrate on
such defaulter and shall when recovered, be remitted to the
Commission to be credited to the Consolidated Fund.

47. In this Part of this Act, unless the context otherwise Interpretation.
requires—

“mobile telephone operator” means an operator

licensed under section 17 of the Sri Lanka
Telecommunications Act, No. 25 of 1991;

“cellular tower” means a cellular telephone site where

antennae and electronic communication
equipment are placed;

“Telecommunication Regulatory Commission” means

the Telecommunication Regulatory Commission
of Sri Lanka established under the Sri Lanka
Telecommunications Act, No. 25 of 1991.

PART XIII

IMPOSITION OF LEVY ON MOBILE SHORT MESSAGE SERVICES

48. (1) There shall be charged with effect from January Imposition of
1, 2019, a levy of 25 cents per each mobile short message, on levy on mobile
short message
bulk advertisements sent through mobile short message
services.
services.
 20 Finance Act, No. 35 of 2018

(2) The levy imposed under subsection (1), shall be paid

by the advertiser who intends to advertise through the mobile
short message in respect of which the levy is charged.

(3) Regulations shall be made under this Act, specifying

the manner of collection and recovery of the levy and for
making provisions for the implementation of the provisions
of this Part of this Act.

Interpretation. 49. In this Part of this Act, unless the context otherwise
requires—

“mobile short message” means a text message which is

sent through mobile phones;

“bulk advertisements” means messages being sent

through mobile phones to group of recipients
for commercial purposes.

PART XIV

GENERAL
Default by body 50. Where the default in payment of a levy or tax
of persons. imposed under this Act is made by a body of persons, if that
body of persons is—

(a) a body corporate, every director and officer

responsible with the management and control of
that body corporate; or

(b) a firm, every partner of that firm; or

(c) a body unincorporated other than a firm, every

officer responsible with the management and
control of that body,

shall be liable to be prosecuted for the recovery of such levy

or tax as provided for in this Act.

Regulations. 51. (1) The Minister may make regulations in respect

of all matters which are required to be prescribed or for which
regulations are authorized to be made under this Act.
 Finance Act, No. 35 of 2018 21

(2) Every regulation made by the Minister under

subsection (1) shall be published in the Gazette and shall
come into operation on the date of its publication or on such
later date as may be specified therein.

(3) Every regulation made by the Minister shall as soon

as convenient after its publication in the Gazette, be brought
before Parliament for approval. Every regulation which is
not so approved shall be deemed to be rescinded from the
date of disapproval but without prejudice to anything duly
done thereunder.

(4) Notification of the date on which any regulation is

deemed to be rescinded shall be published in the Gazette.

52. In the event of any inconsistency between the Sinhala text to

Sinhala and Tamil texts of this Act, the Sinhala text shall prevail in case
of inconsistency.
prevail.

[Section 24]

FIRST SCHEDULE

Category of vehicles identified under the Rate

Harmonized Commodity Description and (Rs.per
Coding System Numbers for custom purposes. vehicle)

1 Trishaws, Tractors and Motorcycles 2,000

2 (a) Motor cars and other motor vehicles

principally designed for the transport
of persons other than the vehicles
referred to in item 1 15,000

(b) Crew cabs, double cabs and cargo vans

3 The following vehicles are not covered by the

above items 1 and 2

(a) Special purpose vehicles other 10,000

than those principally designed
for the transport of persons or goods

(b) Carriages for disabled persons,

whether or not motorized or otherwise
mechanically propelled
22 Finance Act, No. 35 of 2018

[Section 31]
SECOND SCHEDULE

Category of Company Rate (Rs. Per annum)

Private Company 30,000/-

Listed Public Company 1,500,000/-

Any other Company 250,000/-

[Section 40]
THIRD SCHEDULE

Category of the Rate (Rs.)

vehicle

Less than 05 5 to 10 Years Over 10 Years

Years

Hybrid 0.25 per cm3 0.50 per cm3 1.00 per cm3
(Petrol/Diesel)

Fuel 0.50 per cm 3 1.00 per cm3 1.50 per cm3

(Petrol/Diesel)

Passenger bus Rs. 1,000/- Rs. 2,000/- Rs. 3,000/-

 Finance Act, No. 35 of 2018 23

English Acts of the Parliament can be purchased at the “PRAKASHANA PIYASA”, DEPARTMENT OF
GOVERNMENT PRINTING, NO. 118, DR. DANISTER DE SILVA MAWATHA, COLOMBO 8.