Stamp duty ordinance was enacted in Sri Lanka ​​in 1909. ​Thereafter in 1982 Parliament enacted No 43 of Stamp Duty Act to provide for the i​​mposition of stamp duty on instruments and documents and for matter​s connected therewith or incidental thereto.

Stamp Duties on immovable property and certain movable properties were devolved to the Provincial Councils by the 13^th Amendment to the Constitution and stamp duties administered by the central government was suspended with effect from 1st May 2002. The government reintroduced stamp duty and enacted Stamp Duty (Special Provisions) Act No. 12 of 2006, but for only ten instruments.

Those specified instruments are :

• a receipt or discharge given for any money or other property
• an affidavit,
• a policy of insurance,
• a warrant to act as notary public,
• a periodic lic​ense to carry on trade, business, profession or vocation,
• a claim, demand or request made by a service provider from the holder of a credit card, for the payment of a stated sum of money, due in respect of a transaction entered into using such credit card;,
• a mortgage for a definite sum of money which affects a property,
• a promissory note,
• a lease or hire of any property,

Chargeability​

Stamp Duty is charged, under Stamp Duty (Special Provisions) Act No。 12 of 2006 as amended by (Amendment) Act No。 10 of 2008 and 13 of 2011 at specified rates, on every specified Instrument, 

• executed,drawn or presented in Sri Lanka;
• executed outside Sri Lanka in relation to a property in Sri Lanka and presented in Sri Lanka, (liability arises at the time it is presented in Sri Lanka) subject to the exemptions published in the Gazette.

GAZETTES PUBLISHED

Rates: Specified in Extra Ordinary Gazette No. 

• No. 1465/19 dated 05.10.2006
• No. 1530/13 dated 01.01.2008 
• No. 1789/09 dated 17.12.2012 
• No. 1809/19 dated 10.05.2013 
• No. 1864/02 dated 26.05.2014 
• No. 1882/17 dated 30.09.2014
• No. 1933/14 dated 21.09.2015 
• No. 1947/45 dated 01.01.2016
• No. 2091/03 dated 01.10.2018
• No. 2104/05 dated 31.12.2018

Exemptions: Specified in Extra Ordinary Gazette No. 

• No. 1465/20 dated 05.10.2006
• No. 1478/07 dated 01.01.2007
• No. 1546/07 dated 22.04.2008
• No. 1752/17 dated 04.04.2012
• No. 1757/04 dated 09.05.2012
• No. 1778/32 dated 04.10.2012
• No. 1789/15 dated 18.12.2012
• No. 1878/03 dated 01.09.2014
• No. 1889/48 dated 21.11.2014
• No. 1947/46 dated 01.01.2016
• No. 2007/24 dated 21.02.2017
• No. 2149/18 dated 14.11.2019

Compounding of Stamp Duty

For the purpose of compounding, registration should be obtained from the Department of Inland Revenue. The following persons should obtain the registration.

• any person who issue insurance policy;
• any authority issuing licenses;
• any service provider of Credit cards
• any employer employing more than 100 employees
• any other person issuing any other instrument having regard to an impracticability or inexpediency of stamping instruments of such category, at the time  and in the manner prescribed.

The compounding Authority required compounding the relevant Stamp Duty and make the remittances to the Commissioner General of Inland Revenue quarterly within 15 days from the end of the quarter.

Consolidated Acts