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COYLE urges public to obtain TIN Numbers to avoid unbearable penalties

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TIN Registration in Sri Lanka Explained:

The Tax Identification Number (TIN) has become a widespread topic of discussion across the country, and a considerable amount of misinformation is circulating on this matter. It’s essential to clarify that possessing a TIN doesn’t automatically imply liability for tax payment. Instead, it provides individuals with convenient access to numerous services offered by various state institutions without any complications. As of January 1, individuals failing to obtain a Taxpayer Identification Number (TIN) will face a penalty not exceeding Rs. 50,000, cautioned the Department of Inland Revenue.

In a recent update, the Ministry of Finance clarified the role of Tax Identification Numbers (TINs) in Sri Lanka, highlighting that possessing a TIN doesn’t automatically translate to income tax liability. The President’s Media Division (PMD) has reported that only individuals aged 18 and above with an income exceeding the annual tax exemption limit of Rs. 1.2 million are obligated to pay income tax.

Any Sri Lankan earning less than this amount is not required to pay tax. However, it is mandatory for individuals above the age of 18 by December 31, 2023, January 1, 2024, and upon reaching their 18th birthday to register and obtain a TIN. Additionally, individuals earning an income surpassing Rs. 1,200,000 during the fiscal year (from April 1 of one year to March 31 of the following year) are required to register for income tax. However, individuals with no TIN may face a fine under Article 177 of the Inland Revenue Act not exceeding Rs. 50,000.

Upon obtaining a TIN, individuals will be assigned a nine-digit number. Those paying income tax will receive an additional four numbers at the end of their TIN, while those paying VAT will have a TIN ending with the number 7000.

Despite this clarification, possessing a TIN is now mandatory for specific routine transactions starting from February 1. These activities include:

Opening a current account

Seeking building plan approval

Registering a motor vehicle

Renewing a license, and

Registering title deeds to land.

The Commissioner General of Motor Traffic, Nishantha Anuruddha Weerasinghe, emphasized that vehicle ownership or registration cannot proceed without the Taxpayer Identification Number (TIN). Urging the public to promptly obtain the TIN for required services, he further advised against visiting the Department without the necessary number to avoid unnecessary delays.

Boosting government revenue is crucial for Sri Lanka’s economic recovery, especially during the current crisis, aiming to establish a more sustainable economic environment. However, it is essential to ensure that the tax burden is borne by those with the capacity.

Personal Income Taxes (PIT) play a vital role in revenue generation and addressing inequality through effective redistribution. In Sri Lanka, PIT revenue has experienced a steady decline, dropping from 0.9% of GDP in 2000 to 0.2% in 2022—lower than similar low-income economies. To maintain fairness and prevent bracket creep caused by inflation, adjusting thresholds becomes essential. A well-founded approach to determining thresholds, tax slabs, and rates is necessary for increased revenue collection and equitable taxation.

Frequent changes to tax policies, such as the nine revisions to PIT slabs and five adjustments to the tax-free threshold since 2000, without a clear economic rationale make tax administration more complex and hinder compliance. With the country falling short of the first-quarter revenue targets set by the IMF’s Extended Fund Facility Program, enhancing income tax collection becomes pivotal. To meet revenue goals and ensure a fair distribution of the tax burden, it is essential to expand the tax base, emphasizing the importance of aligning with the program’s objectives.

How to obtain a TIN?

The public has the flexibility to register online at www.ird.gov.lk to acquire a Taxpayer Identification Number (TIN). For information, anyone can browse the comprehensive quick guide titled ‘How to register as a Taxpayer’ for a step-by-step walkthrough of the e-Services screens. Another option is to secure a TIN by personally visiting the Primary Registration Unit on the 2nd Floor of the IRD Head Office or any Regional Offices. Accuracy in providing your email address and mobile number is crucial during the TIN application process. Failure to adhere to these instructions may lead to registration by the department and a penalty.



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HNB Finance bags 2 CMA Reporting Awards 2025

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Prof. Ho Yew Kee presents the award, while Rajeeva Bandaranaike hands over the certificate to the HNB Finance team. Featured (right to left): Thushara Jayasekara – Chief Manager / Head of Corporate Planning & Analytics; Randula Munindradasa – Assistant Manager Planning & Analytics; Sandakelum Jayathunga – Senior Manager – Financial Reporting; Maheshika Samarakoon – Manager – Strategy Implementation & Reporting

HNB Finance PLC has been honoured with two prestigious accolades at the CMA Excellence in Integrated Reporting Awards 2025, reaffirming the company’s commitment to transparency, good governance, and integrated business performance.

At this year’s ceremony, HNB Finance PLC was awarded Second Runner Up – joint in the category of “Best Integrated Report , Finance and Leasing Sector”, and also received a Merit Award in recognition of its continued efforts to enhance reporting quality and strengthen stakeholder communication.

The CMA Excellence in Integrated Reporting Awards, organised annually by the Institute of Certified Management Accountants (CMA) of Sri Lanka, acknowledge organisations that demonstrate superior financial reporting standards aligned with global best practices. Winners are assessed on key criteria such as financial performance and strategic management, corporate governance and compliance, innovation and digital transformation, sustainability practices, and professional excellence.

Chaminda Prabhath, Managing Director/CEO of HNB Finance PLC, commented on the recognition, “These awards reaffirm our commitment to upholding the highest standards of integrated reporting and transparent financial disclosure. At HNB Finance, we remain focused on delivering sustainable long-term value through robust governance frameworks, prudent financial management, and continuous innovation. The acknowledgement by CMA Sri Lanka reflects the disciplined efforts of our teams across the organization and motivates us to further enhance our reporting quality, strengthen ESG integration, and reinforce our stakeholder centric approach.”

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ComBank joins ‘Liya Shakthi’ scheme to further empower women-led enterprises

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Mithila Shyamini, Assistant General Manager – Personal Banking at Commercial Bank and Jude Fernando, Chief Executive Officer of the National Credit Guarantee Institution exchange the agreement in the presence of representatives of the two organisations

The Commercial Bank of Ceylon has reaffirmed its long-standing commitment to advancing women’s empowerment and financial inclusion, by partnering with the National Credit Guarantee Institution Limited (NCGIL) as a Participating Shareholder Institution (PSI) in the newly introduced ‘Liya Shakthi’ credit guarantee scheme, designed to support women-led enterprises across Sri Lanka.

The operational launch of the scheme was marked by the handover of the first loan registration at Commercial Bank’s Head Office recently, symbolising a key step in broadening access to finance for women entrepreneurs.

Representing Commercial Bank at the event were Mithila Shyamini, Assistant General Manager – Personal Banking, Malika De Silva, Senior Manager – Development Credit Department, and Chathura Dilshan, Executive Officer of the Department. The National Credit Guarantee Institution was represented by Jude Fernando, Chief Executive Officer, and Eranjana Chandradasa, Manager-Guarantee Administration.

‘Liya Shakthi’ is a credit guarantee product introduced by the NCGIL to facilitate greater access to financing for women-led Micro, Small, and Medium Enterprises (MSMEs) that possess viable business models and sound repayment capacity but lack adequate collateral to secure traditional bank loans. Through NCGIL’s credit guarantee mechanism, Commercial Bank will be able to extend credit to a wider segment of women entrepreneurs, furthering its mission to drive inclusive economic growth.

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Prima Group Sri Lanka supports national flood relief efforts with over Rs. 300 Mn in dry rations

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Defence Secretary Air Vice Marshal (Retd) Sampath Thuyacontha receiving the donation from Sajith Gunaratne - General Manager of Ceylon Agro Industries Limited, and Sanjeeva Perera - General Manager of Ceylon Grain Elevators PLC

Prima Group Sri Lanka has pledged assistance valued at over Rs. 300 million, providing essential Prima food products to support communities affected by the recent floods across the island. This relief initiative is being coordinated through the Ministry of Defence to ensure the timely and effective distribution of aid to impacted families.

As part of this commitment, Prima Group Sri Lanka donated a significant stock of Prima dry rations to the Government of Sri Lanka on 30 November. The consignment will be distributed across multiple severely impacted districts. These supplies will support families facing disruptions to daily life, ensuring they receive assistance as recovery efforts continue.

The handover took place at the Ministry, where the donation was received by the Secretary of Defence, Air Vice Marshal (Retired) Sampath Thuyacontha. Representing Prima Group Sri Lanka, Sajith Gunaratne – General Manager of Ceylon Agro Industries Limited, and Sanjeeva Perera – General Manager of Ceylon Grain Elevators PLC, officially presented the donation.

Prima Group has been standing with the people of Sri Lanka for over 40 years, and this donation reflects its broader commitment to the nation during challenging times. As relief operations continue across the island, the company remains focused on helping families rebuild their lives and supporting the ongoing recovery process in collaboration with the Government Authorities.

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