The Hon. Ananda Wijepala - Minister of Public Security and Parliamentary Affairs

¶ 01 Hon. Speaker, in line with our election commitments, the Government is committed to safeguarding freedom of expression.

¶ 02 On the Online Safety Act (No. 9 of 2024), the Cabinet on 09.02.2025 (Ref. AMP/25/0201/821/005) decided to urgently identify further amendments through public consultations, obtaining views from media, civil society, and other stakeholders. The Ministries of Public Security and Parliamentary Affairs; Health and Mass Media; and Justice and National Integration have been tasked to jointly proceed via a coordinating committee. A consolidated concept paper with proposed amendments will be submitted to the Cabinet by the relevant Ministers.

¶ 03 Regarding enforcement to date: no person has been arrested, remanded, or prosecuted under the OSA.

¶ 04 On the proposed 15% income tax on profits from export of services (including IT) by Sri Lanka residents: the previous Government proposed 30%; in our review, this was reduced to 15%. For personal income tax, residents enjoy an annual tax-free allowance of Rs. 1.8 million; the next Rs. 1 million is taxed at 6%, and thereafter at 15% up to that cap for services exports. For other incomes, rates can go up to 36%, but for service exports this is capped at 15%. Data on affected exporters should be obtained from the Inland Revenue Department. Expected revenue for 2025 is estimated at about 0.04% of GDP.

¶ 05 Only residents are liable; remittances by non-resident migrant workers are not subject to this tax.

¶ 06 Tax will be levied through return-based assessments; therefore, ring-fencing via foreign remittance identification is unnecessary.

¶ 07 We are conducting a study on the digital economy. The tax policy is designed on principles of fairness.