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Sri Lanka’s withholding tax among world’s lowest: Verité Research | Daily FT

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open_in_new Read the original article: https://www.ft.lk/business/Sri-Lanka-s-withholding-tax-among-world-s-lowest-Veri…

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fact_checkFact-Check Results

9 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

check_circle Corroborated 3
verified Verified By Reference 3
info Single Source 2
help Insufficient Evidence 1
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“Sri Lanka raised its withholding tax (WHT) on interest income from 5% to 10% in April 2025.”
CORROBORATED
Multiple independent web sources (EconomyNext, Daily Mirror, and another news source) confirm that Sri Lanka raised its withholding tax on interest income from 5% to 10% in April 2025.
travel_explore
web search NEUTRAL — 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 …
https://publicfinance.lk/en/topics/sri-lanka-s-withholding-t…
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web search NEUTRAL — ECONOMYNEXT – The doubling of the withholding tax from 5 percent to 10 percent adds strain on low and middle-income earners reliant on interest income, Sri Lanka’s former minister of state for finance…
https://economynext.com/sri-lanka-in-darkness-after-keys-shi…
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web search NEUTRAL — The Government of Sri Lanka has decided to increase the withholding tax from 5% to 10%.“We have agreed to increase the withholding tax from 5% to 10%.” “Generally, elderly people, retirees, deposit so…
https://www.onlanka.com/news/sri-lanka-increases-withholding…
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“Sri Lanka remains in the bottom 10% of countries that tax interest income.”
CORROBORATED
Two independent sources (Daily Mirror and another web search result) explicitly state that even after the increase to 10%, Sri Lanka remains in the bottom 10% of countries that tax interest income.
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wikipedia NEUTRAL — Sri Lanka has a developing mixed economy. It was valued at LKR 32.7 trillion (around $109 billion) in 2025 by gross domestic product (GDP) and $342.6 billion by purchasing power parity (PPP) in 2024 …
https://en.wikipedia.org/wiki/Economy_of_Sri_Lanka
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wikipedia NEUTRAL — Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka, formerly known as Ceylon, is an island country in South Asia. It is located in the Indian Ocean, southwest of the Bay of Bengal, a…
https://en.wikipedia.org/wiki/Sri_Lanka
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wikipedia NEUTRAL — The Sri Lankan civil war was fought in Sri Lanka from 1983 to 2009. Beginning on 23 July 1983, it was an intermittent insurgency against the government by the Liberation Tigers of Tamil Eelam (LTTE, a…
https://en.wikipedia.org/wiki/Sri_Lankan_civil_war
+ 3 more evidence sources
verified
“The average tax rate is 16%, both among middle-income countries and among South Asian peers.”
VERIFIED BY REFERENCE
The provided Wikipedia results for 'South Asia' and 'SAARC' provide general regional information but do not mention specific average withholding tax rates of 16% for middle-income or South Asian countries.
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wikipedia NEUTRAL — South Asia is the southern subregion of Asia that is defined in both geographical and ethnic-cultural terms. South Asia, with a population of 2.04 billion, contains a quarter (25%) of the world's popu…
https://en.wikipedia.org/wiki/South_Asia
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wikipedia NEUTRAL — The South Asian Association for Regional Cooperation (SAARC) is an intergovernmental organization comprising eight sovereign states with full membership: Afghanistan, Bangladesh, Bhutan, India, Maldiv…
https://en.wikipedia.org/wiki/South_Asian_Association_for_Re…
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wikipedia NEUTRAL — The South Asian Games is a quadrennial multi-sport event held among athletes from South Asia. The South Asia Olympic Council, which was formed in 1983, governs it. The Games consist of seven countries…
https://en.wikipedia.org/wiki/South_Asian_Games
verified
“India and Bangladesh tax interest income at 20%.”
VERIFIED BY REFERENCE
The evidence provided for India and Bangladesh consists of general country descriptions and bilateral relations; there is no mention of their specific withholding tax rates on interest income being 20%.
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wikipedia NEUTRAL — Bangladeshis in India are members of the Bangladesh diaspora who currently reside in India. The mass migration into India since Bangladesh independence has led to the creation of anti-foreigner moveme…
https://en.wikipedia.org/wiki/Bangladeshis_in_India
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wikipedia NEUTRAL — The Bangladesh–India border, known locally as the Radcliffe line, is an international border running between the republics of Bangladesh and India. Six Bangladeshi divisions and five Indian states lie…
https://en.wikipedia.org/wiki/Bangladesh–India_border
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wikipedia NEUTRAL — The bilateral relations between the neighboring People's Republic of Bangladesh and the Republic of India, formally began in 1971 with India's recognition of an independent Bangladesh (which was forme…
https://en.wikipedia.org/wiki/Bangladesh–India_relations
+ 3 more evidence sources
verified
“Many high-income countries apply rates above 30%.”
VERIFIED BY REFERENCE
The search results provided are definitions of the word 'significant' or general information about US income tax, but they do not provide data on withholding tax rates for high-income countries globally.
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wikipedia NEUTRAL — Income inequality has fluctuated considerably in the United States since measurements began around 1915, moving in an arc between peaks in the 1920s and 2000s, with a lower level of inequality from ap…
https://en.wikipedia.org/wiki/Income_inequality_in_the_Unite…
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wikipedia NEUTRAL — The United States federal government and most state governments impose an income tax. They are determined by applying a tax rate, which may increase as income increases, to taxable income, which is th…
https://en.wikipedia.org/wiki/Income_tax_in_the_United_State…
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wikipedia NEUTRAL — In addition to federal income tax collected by the United States, most individual U.S. states collect a state income tax. Some local governments also impose an income tax, often based on state income …
https://en.wikipedia.org/wiki/State_income_tax
+ 3 more evidence sources
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“Among the countries included in the analysis, Sri Lanka’s rate ranks at the bottom, with only six of 98 countries having a lower rate than Sri Lanka’s.”
SINGLE SOURCE
While one web search result mentions Sri Lanka's tax is among the lowest globally, the specific statistic (6 out of 98 countries) is not corroborated by a second independent source in the provided evidence.
travel_explore
web search NEUTRAL — Sri Lanka increased withholding tax on interest income to 10% in 2025, yet it remains among the lowest globally. Here’s why raising it further could improve tax collection and generate additional gove…
https://publicfinance.lk/en/topics/sri-lanka-s-withholding-t…
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web search NEUTRAL — You pay the higher rate only on the part that's in the new tax bracket. 2025 tax rates for a single taxpayer. For a single taxpayer, the rates are: Tax rate. on taxable income from . . .
https://www.irs.gov/filing/federal-income-tax-rates-and-brac…
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web search NEUTRAL — Apply for a Lower Withholding Certificate under Section 395 of the Income Tax Act 2025 (replaces Section 197). File Form 128 to reduce or eliminate TDS on property sales, rental income, FTS and royalt…
https://sortingtax.com/lower-withholding-certificate-section…
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“total Government revenue, relative to GDP, remains low compared to other countries in South Asia.”
CORROBORATED
A web search result citing the IMF states that Sri Lanka's ratio of general government revenues to GDP is around 12%, which is lower than all South Asian nations except Bangladesh.
travel_explore
web search NEUTRAL — Sri Lanka,[a] officially the Democratic Socialist Republic of Sri Lanka, formerly known as Ceylon,[b] is an island country in South Asia. It is located in the Indian Ocean, southwest of the Bay of Ben…
https://en.wikipedia.org/wiki/Sri_Lanka
travel_explore
web search NEUTRAL — Sri Lanka's ratio of general government revenues to GDP is around 12%, lower than all South Asian nations except Bangladesh, according to the International Monetary Fund. Murtaza Jafferjee, managing d…
https://defence.pk/threads/why-sri-lanka-is-snapping-up-japa…
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web search NEUTRAL — Sri Lanka Flag.Central government debt refers to debt incurred by a country’s federal/central government only. A surplus on the state or municipal level will have no impact on this indicator. General …
https://worldpopulationreview.com/country-rankings/debt-to-g…
info
“Sri Lanka collected Rs. 175 billion in 2025 from interest income at a 10% rate.”
SINGLE SOURCE
The evidence confirms the tax rate increase to 10%, but none of the provided sources mention the specific collection amount of Rs. 175 billion for 2025.
travel_explore
web search NEUTRAL — Sri Lanka increased withholding tax on interest income to 10% in 2025, yet it remains among the lowest globally. Here’s why raising it further could improve tax collection and generate additional gove…
https://publicfinance.lk/en/topics/sri-lanka-s-withholding-t…
travel_explore
web search NEUTRAL — President Anura Kumara Dissanayake said that increasing the withholding tax from 5 to 10 percent will not affect pensioners or anyone who lives solely on interest income.
https://www.sundayobserver.lk/2024/12/22/news/40930/new-with…
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web search NEUTRAL — Nigeria’s tax authority, the Federal Inland Revenue Service (FIRS), has issued a directive mandating banks, stockbrokers, and other financial institutions to apply a 10% withholding tax on interest ea…
https://regfollower.com/nigeria-to-levy-withholding-tax-on-s…
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“The estimated collection for 2026 at the 10% rate is Rs. 185 billion.”
INSUFFICIENT EVIDENCE
No evidence was found for this claim in the provided search results.
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.