The Inland Revenue Department officially opened a VAT refund window at Bandaranaike International Airport (BIA) on July 4, enabling foreign tourists to reclaim Value Added Tax (VAT) paid on eligible purchases made in Sri Lanka.

This initiative was implemented following policy approval from the Gem and Jewellery Authority and the Ministry of Industries, based on a proposal submitted to the President on March 14, 2025.

Tourists who have spent less than 90 days in the country and have paid VAT exceeding Rs. 50,000 on purchases are eligible to claim refunds at the new counter.

The move aims to promote the purchase of Sri Lankan products by international visitors and to streamline tax collection processes. A media conference is scheduled to further brief businesses and tourism sector stakeholders on the VAT refund mechanism.

The launch event was held under the patronage of the Minister of Industries and Entrepreneurship Development, Mr. Sunil Handunnethi, and the Minister of Labour and Deputy Minister of Finance, Mr. Anil Jayantha. Also present were the Chairman of the Gem and Jewellery Authority, Mr. Navin Suriyarachchi, and senior officials from the Income Tax Department.