Sri Lanka — Social Security Contribution Levy (SSCL) — Skill v1.0

Produced by OpenAccountants (openaccountants.com). Research-grade (tier 2), drafted from official IRD sources — pending sign-off by a Sri Lankan CA / IRD-registered practitioner. Not tax advice.

---

Section 1 — Quick reference

Field	Value
Country / authority	Sri Lanka — Inland Revenue Department (IRD)
Tax	Social Security Contribution Levy (SSCL) — a turnover-based levy, separate from VAT and income tax
Currency	LKR
Rate	2.5% on liable turnover
Liable turnover	An activity-dependent fraction (25%–100%) of gross turnover — NOT gross turnover itself
Status	In force (most recently amended by the SSCL Amendment Act No. 24 of 2025)
Principal statute	Social Security Contribution Levy Act (2022), as amended — VERIFY the exact principal-Act number/year
Registration threshold	Not asserted — VERIFY (a quarterly liable-turnover threshold applies; confirm current LKR figure with the IRD)
Validated by	Pending — Sri Lankan CA / IRD-registered practitioner
Skill version	1.0

Conservative defaults

Ambiguity	Default
Liable-turnover fraction for the activity unclear	Apply the higher fraction (up to 100%) and flag
Registration obligation borderline (threshold)	Treat as registrable and flag — VERIFY threshold
Whether SSCL applies to a supply	Apply 2.5% on the liable fraction and flag for reviewer

---

Section 2 — Required inputs and refusal catalogue

Required inputs

Business activity classification (importer / manufacturer / service provider / wholesaler-retailer / financial services — drives the liable-turnover fraction); gross turnover for the period; SSCL registration status; any exemptions claimed.

Refusal catalogue

R-LK-SSCL-1 — Liable-turnover fraction tables. The exact 25%–100% fraction per activity class is set by the SSCL Act/schedules and changes by amendment — this skill states the principle but does NOT assert the per-activity fraction table. VERIFY against the current SSCL Act and IRD guidance; escalate.

R-LK-SSCL-2 — Registration threshold. The quarterly liable-turnover registration threshold is NOT asserted here — VERIFY the current LKR figure with the IRD.

R-LK-SSCL-3 — Exemptions / sector treatment. Exempt supplies and sector-specific treatment are schedule-driven — escalate.

R-LK-SSCL-4 — Cross-skill. Income tax / corporate / VAT / WHT → the respective Sri Lanka skills.

---

Section 3 — Tier 1 rules

3.1 Rate and base

SSCL is charged at 2.5% on liable turnover. Liable turnover is an activity-dependent fraction (25%–100%) of gross turnover — i.e. for many activities only a portion of gross turnover is subject to the levy. Applying 2.5% directly to gross turnover for every activity over-states the levy for activities with a sub-100% fraction.

SSCL = 2.5% × (liable-turnover fraction × gross turnover)

The liable-turnover fraction depends on the activity class (importer, manufacturer, service provider, wholesaler/retailer, financial services). The per-activity fraction is not asserted in this skill — VERIFY against the current SSCL Act and IRD schedule.

3.2 Status

SSCL is in force for YA 2025/26, most recently amended by the SSCL Amendment Act No. 24 of 2025. (Note: the existing VAT skill flags SSCL status as volatile — this skill confirms it is currently in force, but the practitioner should re-confirm the in-force status and any rate/fraction changes at the date of supply.)

---

Section 4 — Worked example (illustrative — confirm the liable fraction)

A manufacturer with gross turnover LKR 100,000,000 in a period, where the applicable liable-turnover fraction is (illustratively) 50%:

Liable turnover = 50% × 100,000,000 = 50,000,000
SSCL = 2.5% × 50,000,000 = LKR 1,250,000

The 50% fraction is illustrative only — the real fraction must be taken from the current SSCL schedule for the activity class.

---

Section 5 — Filing

SSCL is administered by the IRD. Return/payment frequency and due dates — VERIFY against the current IRD SSCL guidance (not asserted here).

---

Section 6 — Sources

1. IRD SSCL page — https://www.ird.gov.lk/en/Type%20of%20Taxes/SitePages/Social%20Security%20Contribution%20Levy%20(SSCL).aspx
2. IRD YA 2025/26 tax chart (SSCL 2.5% on liable turnover) — https://www.ird.gov.lk/en/publications/SitePages/tax_chart_2526.aspx

Known gaps / VERIFY: principal-Act number/year; per-activity liable-turnover fractions; registration threshold; filing frequency and due dates; exemptions.

---

Prohibitions

• NEVER apply 2.5% to gross turnover for an activity whose liable-turnover fraction is below 100% — that over-states the levy.
• NEVER assert a per-activity liable-turnover fraction, a registration threshold, or filing dates this skill flags as VERIFY.
• NEVER treat SSCL as suspended — it is currently in force (re-confirm at the date of supply).
• NEVER file or instruct filing — produce a working paper for practitioner review.

---

Disclaimer

This skill and its outputs are for informational and computational purposes only and do not constitute tax, legal, or financial advice. All outputs must be reviewed and signed off by a qualified Sri Lankan professional (CA / IRD-registered tax practitioner) before filing or acting upon. The latest verified version is maintained at openaccountants.com.

---

<!-- openaccountants-cta-block -->

Talk to a verified accountant

This skill is a tool, not an engagement. To speak with a licensed accountant who verifies skills for your jurisdiction — no liability until both parties sign an engagement letter — book a free 30-minute call:

→ Book a call