The Social Security Contribution Levy (Amendment) Bill has been passed in Parliament with amendments following its third reading.

The second and third reading of the Bill took place today before being approved by the House.

Earlier, the Bill was reviewed and approved by the Committee on Public Finance. The committee met in Parliament under the chairmanship of MP Dr. Harsha de Silva, with the participation of Deputy Ministers Chathuranga Abeysinghe, Dr. Kaushalya Ariyaratne, and Nishantha Jayawardena, as well as MPs Ravi Karunanayake and Attorney-at-Law Lakmali Hemachandra.

The amendments were proposed in line with the 2026 Budget, revising the Social Security Contribution Levy Act No. 25 of 2022. Accordingly, the annual turnover threshold for tax registration will be reduced from Rs. 60 million to Rs. 36 million, effective from July 1, 2026.

Additionally, it has been decided to impose the levy on the import or production of vehicles from May 1, 2026, while exempting wholesale and retail trade from the tax.

Speaking at the committee, Chair Dr. Harsha de Silva highlighted the need to integrate the Social Security Contribution Levy with the Value Added Tax (VAT) into a single tax system. Officials also noted that steps are being taken to maintain current tax revenue while planning future reforms to the tax structure.

Meanwhile, the committee also approved new regulations under the Central Bank of Sri Lanka Act No. 16 of 2023, enabling exporters to invest in local dollar-denominated bonds. Under the new amendments, exporters will be allowed to invest up to 10% of their income in foreign currency-denominated government securities, expanding beyond the previously limited Sri Lanka Development Bonds (SLDBs).