Essential Annual Requirements for
Sri Lankan Companies: A Simplified Guide
Running a company in Sri Lanka comes with several legal and regulatory responsibilities that are often overlooked. Non-compliance can lead to fines and disrupt operations. Here’s a guide to help you stay on top of your annual obligations and keep your business running smoothly.
Keeping Your Financial Records in Order
Good financial management is key to both legal compliance and smooth business operations. Here’s what you need to know:
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Maintain Proper Records: Track all income, expenses, assets, and liabilities. Keep these records for at least five years, as failing to do so could lead to penalties.
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Where to Store Records: Accounting records must be kept in Sri Lanka unless you get special permission from the Registrar to store them abroad. You’ll also need to share updates about your company’s financial position if records are stored outside the country.
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Prepare Financial Statements on Time: Your board of directors must prepare and sign financial statements within six months of the financial year-end (usually March 31). These documents are essential for audits and compliance.
💡 Pro Tip: Avoid errors by using reliable accounting software or hiring professional accountants.
Managing Your Corporate Income Tax (CIT)
Paying taxes on time is a critical part of running a compliant business. Here’s how to handle it:
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Get Your TIN: Make sure your company is registered for Corporate Income Tax (CIT) and has a Tax Identification Number (TIN) from the Inland Revenue Department.
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Meet Key Deadlines:
- By August 15, November 15, February 15 and May 15: Pay the quarterly income tax instalments. The Statement of Estimated Tax has been abolished — from the Year of Assessment 2026/2027 each instalment is calculated from the preceding year's tax liability, so there is no longer an estimate to submit by August 15.
- By September 30: Pay the balance of income tax for the year of assessment that ended the previous March.
- By November 30: File your Final Corporate Return of Income, including audited financial statements.
What to Include in Your Final Tax Return
- Income sources
- Taxable profit and liability
- Exemptions and losses carried forward
- Tax credits and payment details
💡 Example: For the financial year 2023/24, the balance tax was payable by September 30, 2024 and the final tax return was due by November 30, 2024. The payment date and the filing date are different — do not assume one covers the other.
Need help? Check out the Bizadvisor Corporate Tax Guide for detailed insights.
Filing Your Annual Return (Form 15)
The annual return keeps your company’s information up-to-date with the Registrar of Companies. Here’s what you need to do:
- Who Files It? Directors and the company secretary are responsible.
- When to File? Within 30 days from the date of your Annual General Meeting (AGM), under section 133(1) of the Companies Act.
- What Does It Cost? Rs. 7,900 plus applicable taxes, under Extraordinary Gazette No. 2496/03 effective 6 July 2026.
- What Else Goes With It? From 30 March 2026, the beneficial ownership details in Form BO 4 must be delivered together with the annual return, at Rs. 2,300 per form.
How to File:
- Log in to the EROC (e-Registrar of Companies) portal.
- Complete the filing process online.
What to Include:
- Updates to company information (e.g., director changes, address updates).
- Share transfer forms, if applicable.
- Form BO 4 with the beneficial ownership details.
⚠️ Outstanding returns: the Registrar has required every overdue annual return to be filed on or before 30 September 2026. Companies that miss this may be struck off the register. Non-filing carries a fine of up to LKR 1,000,000 for the company and up to LKR 50,000 for each director under section 133(5).
💡 Pro Tip: Accurate filings save you from penalties and keep your company in good standing.
For a step-by-step guide, refer to the Bizadvisor Annual Return Filing Guide.
Why Compliance Matters
Staying compliant isn’t just about avoiding fines. It shows professionalism, ensures smooth operations, and positions your company for long-term success.
If you need support or guidance, Bizadvisor is here to help. Let’s make compliance hassle-free so you can focus on growing your business!