Stamp Duty Calculator Sri Lanka

Stamp duty is a tax levied on certain legal documents and instruments under the Stamp Duty (Special Provisions) Act No. 12 of 2006 and its amendments. It is charged when specified instruments, such as leases, deeds of transfer, gifts and mortgages, are executed. Share certificates are exempt (Gazette 1947/46, item 35). Stamp duty must be paid before or at the time of execution of the instrument, and unstamped or insufficiently stamped instruments are not admissible as evidence in court proceedings. The Department of Inland Revenue (IRD) administers stamp duty in Sri Lanka.

Effective 1 April 2025, the stamp duty rate on lease agreements was increased from 1% to 2% (Rs. 20 per Rs. 1,000) of the total aggregate lease value under the 2025 Budget proposals. The aggregate lease value is the total of all rent payable over the entire term of the lease. For example, a lease with a monthly rent of LKR 50,000 over a 3-year term has an aggregate lease value of LKR 1,800,000, and stamp duty would be LKR 36,000 (2% × 1,800,000). Leases executed before 1 April 2025 remain subject to the old 1% rate.

Yes. The stamp duty rate on lease agreements doubled from 1% to 2% (Rs. 20 per Rs. 1,000) with effect from 1 April 2025, as announced in the 2025 Budget. This is a significant change for businesses and individuals entering into new lease agreements for commercial or residential properties. The rates for property transfers (sale) and gift deeds were not changed by the 2025 Budget; they remain at 3% on the first LKR 100,000 + 4% on the balance (transfers) and 3% on the first LKR 50,000 + 2% on the balance (gift deeds). Transfer and gift rates are set by each province's Finance Statute and can differ; check with the Provincial Revenue Department where the property is before relying on the figure.

Under Sri Lanka law, the obligation to stamp a document is primarily on the person executing the instrument. In practice, conventions vary by instrument type. For property transfers (deeds of sale), it is common for the buyer (transferee) to bear the stamp duty cost as part of the transaction costs. For lease agreements, the lessee (tenant) typically bears the stamp duty. For gift deeds, the donee (recipient) is generally responsible. However, the parties are free to agree otherwise contractually. In all cases, legal advice should be sought to confirm the liability allocation for your specific transaction.

For a property transfer or deed of sale, stamp duty is calculated on a tiered basis: 3% on the first LKR 100,000 of the consideration value, plus 4% on the balance above LKR 100,000. For example, on a property sold for LKR 5,000,000: stamp duty on the first LKR 100,000 is LKR 3,000 (3% × 100,000); stamp duty on the remaining LKR 4,900,000 is LKR 196,000 (4% × 4,900,000); total stamp duty is LKR 199,000. The effective rate on a LKR 5 million transaction is approximately 3.98%.

Stamp duty on a gift deed is calculated as: 3% on the first LKR 50,000 of the assessed market value of the gifted property, plus 2% on the balance above LKR 50,000. For example, on a gift of property valued at LKR 2,000,000: stamp duty on the first LKR 50,000 is LKR 1,500 (3% × 50,000); stamp duty on the remaining LKR 1,950,000 is LKR 39,000 (2% × 1,950,000); total stamp duty is LKR 40,500. The assessed value used by Customs for stamp purposes is generally the market value at the time of the gift, which may differ from the original acquisition cost.