Is Cryptocurrency Taxable in Sri Lanka?

Yes. Cryptocurrency gains in Sri Lanka are subject to Capital Gains Tax (CGT) at 10% on the net gain from disposal. Each sale, swap, or use of crypto to purchase goods or services is a taxable event that must be reported to the IRD.

Use our free Crypto Tax Calculator (click the ₿ Crypto Tax tab) to calculate your CGT liability instantly.

How Is Crypto CGT Calculated?

CGT = (Sale Price − Purchase Price − Fees) × 10%

Example: You bought Bitcoin for LKR 500,000 and sold for LKR 900,000 with LKR 5,000 in fees:

• Net gain: LKR 900,000 − LKR 500,000 − LKR 5,000 = LKR 395,000
• CGT @ 10%: LKR 39,500

Key Crypto Tax Rules in Sri Lanka

• CGT rate: 10% on net capital gain
• Every disposal is taxable — sale, swap, crypto-to-crypto, or spending crypto
• Losses can offset gains in the same Y/A but cannot be carried forward
• Must keep records of all transactions (date, amount, LKR value) for IRD audit up to 4 years
• From July 2026: VAT 18% also applies to crypto exchange platform services

What Records Must You Keep?

• Date and time of each transaction
• Amount of crypto bought and sold
• LKR equivalent value at time of transaction
• Exchange fees paid
• Wallet addresses used

FAQs

Do I need to pay tax on crypto in Sri Lanka?

Yes. Crypto gains are taxable in Sri Lanka under Capital Gains Tax at 10%. You must declare gains in your annual income tax return and pay CGT by the November 30 filing deadline.

What if I made a loss on crypto?

Crypto losses can be offset against other capital gains in the same year of assessment, but they cannot be carried forward to future years.

Is holding crypto taxable in Sri Lanka?

No. Merely holding cryptocurrency is not a taxable event. Tax is triggered only when you dispose of crypto through sale, swap, or use to purchase goods or services.

Does staking income get taxed in Sri Lanka?

Staking rewards and mining income are likely treated as income (not capital gains) under existing IRD rules and should be included in your annual income tax return. Consult a chartered accountant for specific advice.

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