Budget proposes VAT relief for books and exercise books from April 2027
Generic classroom stationery, not products officially certified for the proposed Sri Lankan VAT exemption.
Sri Lanka's 2027 Budget proposes VAT exemptions for school exercise books and a range of printed educational materials, according to published reporting reports on November 12. The reported start is April 2027. This is a proposed tax change, not confirmation that shops must already remove VAT or that every book price will fall by the same amount.
The reported exemption would cover importation and supply of exercise books, textbooks and other printed books, dictionaries, encyclopaedias, children's picture and colouring books, educational publications, printed sheets and printed music. The stated aim is to improve access to education and reading. The published report distinguishes the history: printed books became subject to VAT in January 2024, while exercise books had been taxed before then.
The same package proposes changing the VAT calculation for cinema tickets. Producers, distributors, the National Film Corporation and cinema operators would pay based on their respective shares of ticket revenue rather than the full ticket value. Separately, existing VAT exemptions for Artemia eggs and coconut coir pith would be removed. A proposal to exempt books should therefore not be read as a general VAT exemption for all goods or entertainment.
The published report also reports simpler VAT arrangements for newly registered exporters and use of the Central Bank's indicative exchange rate for foreign-currency transactions. The reported Rs 2.975 billion revenue reduction concerns the proposed VAT revisions collectively; it is not verified here as the cost of the book exemption alone or as cash to be paid to families.
The two news reports provide the current proposal details. This report has not checked an enacted amendment or final Inland Revenue guidance confirming product classifications, commencement or retailer obligations. Buyers and sellers should use those final rules before treating a particular sale as exempt. The photograph shows generic classroom stationery, not Sri Lankan products officially certified for the proposed exemption.
