The Sri Lanka Retailers’ Association (SLRA) has welcomed the Government’s approval of a VAT refund program for tourism, a move expected to enhance Sri Lanka’s appeal as a premier retail tourism destination.
This policy reform aligns Sri Lanka with global shopping hubs like Singapore and Dubai, where tax-free shopping has successfully attracted high-spending tourists. Retail tourism, contributing around 6% of the global travel and tourism sector’s direct GDP, is seen as a key driver of economic growth. With Sri Lanka targeting $8 billion in tourism revenue by 2030, the VAT refund scheme is expected to boost sectors such as luxury goods, branded fashion, electronics, and gem and jewellery.
SLRA President Charitha Subasinghe emphasized the significance of this initiative in eliminating tax barriers and making Sri Lanka a more attractive shopping destination for international visitors. The SLRA remains committed to working with the Government and industry stakeholders to ensure its successful implementation.
Founded in 2015, the SLRA represents nine retail sectors, including FMCG, fashion, e-commerce, and healthcare, striving to promote innovation and economic development within the country’s retail industry.