How is crypto taxed in Sri Lanka?

Sri Lanka has no crypto-specific tax as of October 2026. The country's tax law does not mention crypto directly, the 2026 budget added no crypto tax, and the government is still drafting a virtual asset law that is expected to set out registration, reporting and tax rules for crypto services.

Is there a cryptocurrency tax in Sri Lanka?

Not a dedicated one. In November 2025, Suresh Perera, KPMG Sri Lanka's head of tax and regulatory, told the Daily Mirror that the 2026 budget had no provisions for taxing cryptocurrency. He added that the budget also left other currently untaxed areas untouched.

That does not mean crypto sits outside the tax system for good. Sri Lanka taxes income and gains under its Inland Revenue Act, but the Department of Inland Revenue has not published crypto guidance explaining how those general rules apply, and the government's own plans point to crypto-specific rules arriving through new legislation.

How might a new law change crypto tax in Sri Lanka?

On September 6, 2026, the Sunday Times reported that the Cabinet had directed the drafting of legislation to register, report and tax virtual assets. Under the plan, the Securities and Exchange Commission of Sri Lanka would be the main overseer of virtual assets and their service providers, with the Central Bank, the Financial Intelligence Unit and the Department of Inland Revenue also involved. The proposed law would introduce tax mechanisms for digital asset services, but no rates had been announced and no bill had been passed.

Separately, Sri Lanka raised its general capital gains tax. KPMG reports that the Inland Revenue (Amendment) Act No. 11 of 2026, published on June 5, 2026, raised the rate to 15% for individuals and partnerships. The amendment does not mention crypto.

Is crypto legal in Sri Lanka?

Crypto is not legal tender, and it is not licensed by the central bank. In an April 2018 public notice, the Central Bank of Sri Lanka said virtual currencies are not central bank issued currency, that it had not authorized any virtual currency scheme or initial coin offering, and that it had licensed no company to run such schemes. The 2026 reporting describes a move toward regulating service providers rather than leaving the sector unlicensed. The full picture is in is crypto legal in Sri Lanka, and other approaches are compared in crypto tax around the world and crypto regulation around the world.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.