Claim: The government is imposing a 15% tax on money sent from abroad by migrant workers.
Fact: Deputy Minister of Economic Development, Anil Jayantha, confirmed in a parliamentary session that this news is false.
Sri Lanka’s National People’s Power (NPP) government’s 2025 Budget has introduced a 15% income tax on service exporters, effective from April 1st. This new tax regulation has sparked significant debate in both parliament and online. Politicians and the public have raised concerns about its potential impact on the IT industry, freelancers, content creators, and professionals working remotely for global companies who bring dollars into the country.
In this context, a Facebook page named “செய்திகள்- நிதர்சனம்” posted a video clip from a morning news program broadcast on Ada Derana. The video features the headline from the Weekend Aruna Sinhala newspaper, which reads: “Foreign employees also have to pay a 15% tax.”
The video was posted with a Tamil caption, and the translation reads: “Anura’s government is introducing a 15% tax on remittances sent by foreign workers, effective from April. This tax had been removed during Gotabaya’s term. The new tax structure will exempt the first 1.8 million rupees sent, tax amounts between 1.8 million and 2.8 million rupees at 6%, and apply a 15% tax on amounts exceeding 2.8 million rupees.”
Others also shared this claim on Facebook and expressed their disappointment with different captions, such as: “It has been stated that a 15% tax will be imposed on money sent from abroad. Where are the ANURA comrades living abroad?” and “Those who earn more than 1,50,000 working abroad will have to pay a 15% tax.” Such posts can be seen here and here.
Factcheck/ Verification
In our initial analysis, we checked the Weekend Aruna Newspaper (සති අග අරුණ) to verify whether the headline “Foreign employees also have to pay a 15% tax” was published. We found that this headline did indeed appear on the front page of the Weekend Aruna Sinhala newspaper on March 2, 2025. The front page of the March 2,2025 edition can be seen here.
In our continued search, we found that, apart from the Weekend Aruna newspaper, none of the other media outlets have reported this news.
On further research, we found a statement by the Minister of Labor and Deputy Minister of Economic Development, Anil Jayantha Fernando, clarifying that migrant workers are exempt from this income tax and that the government is not imposing any tax on the remittances sent by migrant workers. This clarification was made during a press conference organized by the Department of Government Information on Sunday, 02 March 2025.
The Minister also stated that, under the new tax mechanism, foreign service providers will be exempt from income tax for the first Rs.1,50,000. Only 6 percent will be charged on the next Rs.85,000, and any income above that will be subject to a maximum tax rate of 15 percent. He added that tax will not be imposed if digital service export providers are taxed 15 percent by the foreign country. If they are taxed at less than 15 percent, only the balance up to 15 percent will be charged under the double tax relief policy.
During his parliament address on March 3, 2025, the Deputy Minister of Economic Development, Anil Jayantha, also confirmed that “While it had been clearly stated in parliament and media interviews that the Government will not impose any income tax on foreign remittances, the Weekend Aruna newspaper published an article claiming that a 15% tax is being imposed on remittance services for those working abroad and sending money to this country. This claim is false.”
Furthermore, Deputy Finance Minister Harshana Suriyapperuma also clarified that the 15% export service tax, recently introduced for companies and individuals providing services to foreign countries, will not affect migrant workers. He further emphasized that migrant workers are exempt from this tax, and the Inland Revenue Act distinguishes between residents and non-residents.
Conclusion
The posts claiming that the government is imposing a 15% tax on money sent from abroad by migrant workers are false. Deputy Minister of Economic Development, Anil Jayantha, confirmed that this is false news and that migrant workers are exempt from this tax.
Result: False
Our Sources
News video of Deputy Minister of Economic Development, Anil Jayantha Fernando’s statement on the new tax mechanism, posted on the Rupavahini News YouTube channel, dated March 2, 2025.
News about the new tax mechanism published in The Morning News website, dated March 2, 2025.
Deputy Minister Anil Jayantha’s statement on the false news published in Weekend Aruna newspaper, posted on Manthri.lk and the official Twitter handle of the Parliament, dated March 3, 2025.
Deputy Minister Anil Jayantha’s statement on the false news published in Todaynewslk.com Facebook page, dated March 3, 2025.
Deputy Finance Minister Harshana Suriyapperuma’s statement on the new tax mechanism published on Newswire, dated March 3, 2025.
If you would like us to fact-check a claim, give feedback or lodge a complaint, email us at [email protected]. You can also visit the Contact Us page and fill out the form.
