Non-Resident Income Tax Rules – 2025/26 (Sri Lanka)

If you are a non-resident Sri Lankan—meaning you have stayed outside Sri Lanka for at least 183 days (about 6 months) during the assessment year—you are not liable to pay tax on foreign currency earnings in Sri Lanka.

No Tax on Foreign Income

Under Sri Lankan tax laws for the 2025/26 assessment year (April 1, 2025 to March 31, 2026):

If you are classified as a non-resident by spending 183 days or more outside Sri Lanka within the year, you are not required to declare or pay tax on income earned from abroad.
Foreign income will be completely tax-exempt for non-residents.

You Still Need to Pay Tax on Sri Lankan Income

Even as a non-resident, you are still required to report and pay taxes on income earned from within Sri Lanka, such as:

Rental income from property in Sri Lanka
Interest from local bank deposits (unless subject to final WHT)
Dividends, royalties, or service fees paid from Sri Lanka
Business income generated within the country

Summary

Foreign income: Not taxable if you qualify as a non-resident
Sri Lankan income: Still taxable, as per standard rates
Quarterly payments: Required only if you have taxable Sri Lankan income exceeding LKR 1,800,000 annually