Colombo, May 13 (Daily Mirror) – Withholding tax in Sri Lanka remains in the bottom 10 percent of countries that tax interest income even after the increase in withholding tax on interest income from 5 percent to 10 percent in April 2025, the Verité Research said.

“Sri Lanka raised its withholding tax on interest income from 5 percent to 10 percent in April 2025. That sounds like a big move. In global terms, it is not. Even after the increase, Sri Lanka remains in the bottom 10 percent of countries that tax interest income. That leaves room to raise the rate further,” it said.