Name: OpenAccountants MCP Server
Author: OpenAccountants

Historical background — Stamp duty was first imposed in Sri Lanka by the Stamp Duty Ordinance of 1909. The Stamp Duty Act No. 43 of 1982 re-enacted and expanded the regime. Stamp duties on immovable property and certain movable properties were devolved to Provincial Councils under the 13th Amendment to the Constitution. Central government stamp duty on immovable property was suspended from 1 May 2002. (Stamp Duty Ordinance 1909; Stamp Duty Act No. 43 of 1982; 13th Amendment to the Constitution)
Current central government legislation — Stamp Duty (Special Provisions) Act No. 12 of 2006 – reintroduced stamp duty by the central government on ten specific instruments only. Amended by Amendment Act No. 10 of 2008 and No. 13 of 2011. Rates are prescribed by Gazette Order under the Act. (Stamp Duty (Special Provisions) Act No. 12 of 2006; IRD Stamp Duty page)
Provincial Council legislation — Immovable property stamp duty is administered by each Provincial Council Revenue Department. Rates may vary by province but the standard rates for property transfers are broadly applied. Central Province and other provinces each have their own Provincial Revenue Departments. (Provincial Council Stamp Duty Acts; Department of Provincial Revenue, Central Province – revenue.virusinc.org)
Deeds of transfer – land sales (standard rate) — TIERED RATE: 3% on the first LKR 100,000 of value; 4% on the remaining amount above LKR 100,000. Example: Land worth LKR 1,000,000 → (LKR 100,000 × 3% = LKR 3,000) + (LKR 900,000 × 4% = LKR 36,000) = LKR 39,000 total. Paid by the BUYER. (Stamp Duty (Special Provisions) Act No. 12 of 2006)
Deeds of gift – gifting of land — TIERED RATE: 3% on the first LKR 50,000 of value; 2% on the remaining amount above LKR 50,000. Example: Land worth LKR 1,000,000 → (LKR 50,000 × 3% = LKR 1,500) + (LKR 950,000 × 2% = LKR 19,000) = LKR 20,500 total. Donor is responsible. Note: gift deeds are lower than sale deeds even on the same value. (Provincial Council Revenue Depts)
Who pays (property transfer)? — Land SALE: the BUYER is responsible for paying stamp duty. MORTGAGE: the landowner/borrower pays. RENTAL/LEASE: the tenant pays. (lexelon.net (May 2025); simplebooks.com)
Valuation for gifts (anti-avoidance) — For gift deeds, the value must reflect fair market value. The Provincial Council Revenue Department valuation should be obtained. Declaring an artificially low value to reduce stamp duty is subject to penalties (treated as tax evasion by the IRD). (Provincial Council Revenue Dept guidance)
Mortgage deeds (on immovable property) — 0.1% (LKR 1 per LKR 1,000 of the mortgage amount). Example: Mortgage of LKR 1,000,000 → LKR 1,000 stamp duty. Paid by the mortgagor/landowner. (Stamp Duty Act)
Rent or lease agreements (deed-form) — 2% (LKR 20 per LKR 1,000) of the total rental value over the full rental period. Nil if monthly rent is below LKR 5,000. Example: LKR 10,000/month for 2 years → total rent = LKR 240,000 → stamp duty = LKR 4,800. Paid by the TENANT. (Stamp Duty Act)
Promissory notes — 0.1% (LKR 1 per LKR 1,000 or part thereof) of the promissory note amount. Example: LKR 1,000,000 promissory note → LKR 1,000 stamp duty. Unstamped promissory notes may be difficult to enforce in legal proceedings. (Stamp Duty Act)
Credit card claims (merchant payment claims) — One of the ten instruments under the Stamp Duty (Special Provisions) Act No. 12 of 2006 – stamp duty applies to claims made by service providers from holders of credit cards for payment of stated sums. (Stamp Duty (Special Provisions) Act No. 12 of 2006)
Affidavits and other instruments (central government) — Fixed stamp duty payable on affidavits, appointments of notaries public, insurance policies, and other specified instruments under the Stamp Duty (Special Provisions) Act. Rates specified in Gazette Orders. (Stamp Duty (Special Provisions) Act No. 12 of 2006; IRD Stamp Duty page)
Share transfers — Stamp duty on the instrument of transfer of company shares. Rate prescribed under the Stamp Duty Act. From 1 April 2026, a TIN is required to be verified before permitting the transfer of shares (IRA Amendment Act No. 11 of 2026). (Stamp Duty Act No. 43 of 1982; IRA (Amendment) Act No. 11 of 2026; Companies Act)
Cheques, bills of exchange, bank withdrawals/transfers — Stamp duty applies to bills of exchange, cheques, promissory notes presented/accepted in Sri Lanka, and certain banking transaction documents. The Stamp Duty Act covers instruments executed outside Sri Lanka that relate to property or matters in Sri Lanka. (Stamp Duty Act No. 43 of 1982 s 4(c); s 4(e))
Affixing physical stamps — For smaller amounts: stamp duty is paid by affixing a special revenue stamp to the document. Stamps are cancelled (usually by punching a hole) to prevent reuse. (IRD Stamp Duty page)
Bank payment – mortgage/immovable property deeds — For mortgage deeds or deeds related to immovable property: payment credited to Commissioner General of Inland Revenue (CGIR) account No. 7041555 at Bank of Ceylon, Taprobane Branch. Payment certificate obtained from bank and attached to the deed. (IRD Stamp Duty payment instructions)
Bulk / compound payments — For compounded stamp duty (e.g. multiple employees): payment to account No. 4153842 of CGIR at Bank of Ceylon, Taprobane Branch. Compound rate: LKR 875 per person (example rate noted in simplebooks.com). (IRD Stamp Duty payment instructions)
Non-payment / underpayment — Failure to pay stamp duty or underpaying it is treated as tax evasion. The IRD has the authority to investigate and take legal action against offenders. Penalties may include fines and surcharges. (Stamp Duty (Special Provisions) Act; IRD enforcement powers)
Unstamped instruments — An instrument that is not properly stamped may be inadmissible in legal proceedings (e.g. an unstamped promissory note may be difficult to enforce in court). (Stamp Duty Act)
TIN requirement for share transfers (from 1 April 2026) — Under IRA (Amendment) Act No. 11 of 2026, TIN verification is now required before permitting the transfer of shares and for obtaining building plan approval. Non-compliance by the relevant official may result in penalties. (IRA (Amendment) Act No. 11 of 2026)

Sri Lanka Stamp Duty

Key facts — Sri Lanka, 2025

The full rule

More Sri Lanka tax skills

Historical background	Stamp duty was first imposed in Sri Lanka by the Stamp Duty Ordinance of 1909. The Stamp Duty Act No. 43 of 1982 re-enacted and expanded the regime. Stamp duties on immovable property and certain movable properties were devolved to Provincial Councils under the 13th Amendment to the Constitution. Central government stamp duty on immovable property was suspended from 1 May 2002.Stamp Duty Ordinance 1909; Stamp Duty Act No. 43 of 1982; 13th Amendment to the Constitution
Current central government legislation	Stamp Duty (Special Provisions) Act No. 12 of 2006 – reintroduced stamp duty by the central government on ten specific instruments only. Amended by Amendment Act No. 10 of 2008 and No. 13 of 2011. Rates are prescribed by Gazette Order under the Act.Stamp Duty (Special Provisions) Act No. 12 of 2006; IRD Stamp Duty page
Provincial Council legislation	Immovable property stamp duty is administered by each Provincial Council Revenue Department. Rates may vary by province but the standard rates for property transfers are broadly applied. Central Province and other provinces each have their own Provincial Revenue Departments.Provincial Council Stamp Duty Acts; Department of Provincial Revenue, Central Province – revenue.virusinc.org
Deeds of transfer – land sales (standard rate)	TIERED RATE: 3% on the first LKR 100,000 of value; 4% on the remaining amount above LKR 100,000. Example: Land worth LKR 1,000,000 → (LKR 100,000 × 3% = LKR 3,000) + (LKR 900,000 × 4% = LKR 36,000) = LKR 39,000 total. Paid by the BUYER.