Stamp Duty Suite · Sri Lanka
Calculate stamp duty correctly,
the first time.
A live calculator for the five everyday instruments under the Stamp Duty (Special Provisions) Act No. 12 of 2006: transfers, gifts, mortgages, leases, and promissory notes. Maintained by AW Chambers as a public utility.
Formula
3% on first LKR 100,000 · 4% on the balance
Stamp Duty (Special Provisions) Act No. 12 of 2006
Stamp Duty Payable
Payable by the person drawing, making or executing the instrument, unless otherwise agreed — section 6(e).
Non-payment and underpayment are both tax evasion, and an instrument may be inadmissible in evidence until it is properly stamped.
Indicative only · FX rates from open.er-api.com · Statutory duty calculated in LKR · Confirm with the Inland Revenue Department before payment.
Which one are you stamping?
The Act charges the instrument rather than the transaction, so the deed you sign has a name that may not be the one you would use for what you are doing.
- Deed of transfer
- Buying land, a house or any other property. Searches for land stamp duty, property purchase stamp duty or home stamp duty all land here.
- Deed of gift
- Transferring property to a family member or anyone else without payment. Also called a gift deed.
- Mortgage deed
- Securing a loan on property. A search for loan stamp duty is usually this.
- Lease
- Renting property out or taking a tenancy, whether it is called a lease, a rental agreement or a tenancy agreement.
- Promissory note
- A written promise to pay a sum of money, including a note given alongside a loan.
Stamp duty rates at a glance
The rates below are those the calculator applies. Duty is assessed in Sri Lanka Rupees on the consideration or assessed value of the instrument.
| Instrument | Rate | Notes |
|---|---|---|
| Deed of Transfer | 3% on the first LKR 100,000, 4% on the balance | Sales and other transfers of immovable property. |
| Deed of Gift | 3% on the first LKR 50,000, 2% on the balance | A provincial valuation is required for an accurate land value. |
| Mortgage Deed | 0.1% — LKR 1 per LKR 1,000 | Payable to the Bank of Ceylon, Taprobane Branch, A/C 7041555. |
| Lease or Rent | 2% of the total rent for the term | Payable only where the monthly rent exceeds LKR 5,000. Raised from 1% with effect from 1 April 2025. |
| Promissory Note | 0.1% — LKR 1 per LKR 1,000 or part thereof | An improperly stamped note may be unenforceable in court. |
Indicative. Confirm the applicable duty with the Inland Revenue Department before payment.
Payment & Procedure
Where the money goes, and how to make it count.
Property & Mortgages
Bank of Ceylon · Taprobane Branch
Stamp duty on mortgages and immovable-property instruments. Bank issues a certificate to be affixed to the deed.
Bulk / Compounded Payments
Bank of Ceylon · Taprobane Branch
Compounded stamp duty payments to the Commissioner General of Inland Revenue.
Reminder · Stamps must be physically cancelled (typically by punching) for the payment to be legally valid. Affix the bank certificate to the relevant instrument.
How To Pay
Four steps · physical cancellation matters.
Step 01
Purchase Stamps
Buy stamps of the correct denomination, or credit the calculated amount to the relevant BoC account.
Step 02
Affix or Attach
Affix stamps to the instrument, or attach the bank-issued payment certificate to the deed.
Step 03
Cancel Physically
Stamps must be physically cancelled (typically by punching) to prevent re-use and to be legally valid.
Step 04
Retain Records
Keep the stamped original and the bank certificate for production at registration and in any future dispute.
Background
A short history of stamp duty in Sri Lanka.
Sri Lanka first taxed official documents under the Stamp Duty Ordinance of 1909, later replaced by the Stamp Duty Act No. 43 of 1982. Central-government stamp duty was suspended on 1 May 2002 following the 13th Amendment to the Constitution, which decentralised the head of revenue to the Provincial Councils.
In 2006, Parliament reintroduced stamp duty through the Stamp Duty (Special Provisions) Act No. 12 of 2006, but only for a closed list of specified instruments. It was amended further in 2008 and 2011, with the most recent rate change to lease/hire taking effect on 1 April 2025.
Specified Instruments
The closed list: duty applies only to these.
- 01Affidavit
- 02Policy of insurance
- 03Warrant to act as notary public
- 04Periodic licence (trade, business, profession or vocation)
- 05Credit-card payment claim
- 06Mortgage for a definite sum of money
- 07Promissory note
- 08Lease or hire of any property
- 09Receipt or discharge for money or property
Worked Examples
How the maths actually lands.
Sale Deed
LKR 39,000
- Property valueLKR 1,000,000
- First LKR 100,000 × 3%LKR 3,000
- Balance LKR 900,000 × 4%LKR 36,000
Gift Deed
LKR 20,500
- Land valueLKR 1,000,000
- First LKR 50,000 × 3%LKR 1,500
- Balance LKR 950,000 × 2%LKR 19,000
Effective 1 April 2025
Stamp duty on lease and hire agreements has been increased from 1% to 2%, the first revision to this head of duty since 2006.
Provincial Valuation
For deeds of gift, valuation must come from the relevant Provincial Revenue Department.
Although a deed of gift involves no monetary transaction, the deed must still state the land value. To prevent under-declaration and the loss of provincial revenue, an official valuation should be obtained before stamp duty is calculated.
Revenue Department
Western Province
Revenue Department
Central Province
Revenue Department
Southern Province
Website unavailable
Revenue Department
Northern Province
Revenue Department
Eastern Province
Revenue Department
Sabaragamuwa Province
Revenue Department
North Central Province
Revenue Department
Uva Province
Revenue Department
North Western Province
Liability & Consequence
Who actually pays, and what happens if they don't.
Who pays
On a sale, the buyer. On a mortgage, the landowner. On a lease, the tenant. For other instruments, the person who takes the benefit of the document.
If unpaid
Non-payment is tax evasion. The Inland Revenue Department can investigate, impose penalties, and take legal action. The instrument may be inadmissible until properly stamped.
If underpaid
Equally treated as evasion. Where land value is under-declared on a gift deed without a provincial valuation, an inquiry and penalty typically follows.
Frequently Asked
Stamp duty, in plain language.
What is stamp duty in Sri Lanka?+
Stamp duty is a government charge payable on certain documents and transactions. In Sri Lanka it is governed by the Stamp Duty (Special Provisions) Act No. 12 of 2006, as amended. Payment is evidenced by affixing and physically cancelling a stamp, or by a bank-issued certificate.
How is stamp duty on a sale of land calculated?+
3% on the first LKR 100,000 of the property value, plus 4% on the balance. For LKR 1,000,000 the duty is LKR 39,000 (LKR 3,000 + LKR 36,000). The buyer is responsible for payment.
How is stamp duty on a deed of gift calculated?+
3% on the first LKR 50,000 of the assessed land value, plus 2% on the balance. For LKR 1,000,000 the duty is LKR 20,500. A provincial valuation is required to prevent under-declaration.
What is the stamp duty on a lease or rental agreement?+
2% of the total rent payable over the full term. No stamp duty is charged where the monthly rent is LKR 5,000 or less. The 2% rate took effect on 1 April 2025, the first revision since 2006.
What is the stamp duty on a mortgage or promissory note?+
0.1%: LKR 1 per LKR 1,000 (or part thereof, in the case of a promissory note). Improperly stamped promissory notes can be unenforceable in court.
Who pays the stamp duty?+
On a land sale, the buyer pays. On a mortgage, the landowner pays. On a lease, the tenant pays. For other instruments, the person who takes the benefit of the document pays.
What happens if stamp duty is not paid or is underpaid?+
Both non-payment and underpayment are tax evasion. The Inland Revenue Department may impose fines and take legal action, and the underlying instrument may be inadmissible in evidence until properly stamped.
In accordance with Supreme Court Rules 1988, these tools and documents are provided for informational purposes only. AW Chambers maintains this repository as a public utility to support legal literacy.
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