Guide to Social Security Contribution Levy (SSCL) – Sri Lanka
What is SSCL?
The Social Security Contribution Levy (SSCL) is a 2.5% tax on the liable turnover of businesses. It was introduced via the SSCL Act No. 25 of 2022 and came into effect on 1st October 2022.
Who Needs to Pay SSCL?
SSCL applies to:
- Importers of goods
- Manufacturers
- Service providers
- Wholesalers and retailers
Note: Importers are liable for SSCL at the point of import with no turnover threshold.
Current Registration Thresholds (Effective from 01 Jan 2024)
A business must register for SSCL if:
- Quarterly turnover exceeds Rs. 15 million, or
- Turnover exceeds Rs. 60 million in any 4 consecutive quarters
Previously, the threshold was Rs. 30 million per quarter or Rs. 120 million per year.
SSCL Rate & Liable Turnover Calculation
| Category | Liable Turnover % |
|---|---|
| Importers | 100% |
| Service providers | 100% |
| Manufacturers | 85% |
| Wholesale distributors (local manufacturers) | 50% |
| Other wholesalers/retailers | 25% |
Exemptions (As of 2024)
Certain articles and services are exempt from SSCL.
Exempt Articles:
- Exported goods
- Fertilizer, petroleum, LP gas
- Pharmaceuticals
- Equipment for differently abled persons
- Imported motor vehicles liable to Excise Duty
- Rough gems imported for re-export
- Goods sold at duty-free shops
- Rice from local paddy
Exempt Services:
- Electricity (except by licensed distributors)
- Medical and water supply services
- Passenger/goods transport
- Life insurance
- Government and Central Bank services
- Services by registered Air Transport Sales Agents
Payment and Filing
- Monthly payments: Pay by the 20th of the following month
- Quarterly returns: Submit by the 20th of the month after each quarter ends
SSCL Tax Type Code & Payment Period Codes
When making SSCL payments, it's essential to use the correct Tax Type Code and Payment Period Code.
✅ Tax Type Code for SSCL: 32
📅 Payment Period Codes The Payment Period Code is a five-digit number representing the tax period for which the payment is made. It follows this format:
Format: YYQMM
- YY = Last two digits of the year (e.g.,
25for 2025) - Q = Quarter number (
1, 2, 3, or 4) - MM = Month number within that quarter (
01, 02, 03)
For example, for January 2025, the Payment Period Code is 25101, where:
25denotes the year 20251indicates the first quarter01represents January
Penalties for Non-Compliance
- 10% penalty on late payments
- 2% interest per month on the outstanding amount
- Maximum penalty capped at 100% of tax due
De-registration Option (Effective 01 Jan 2024)
If turnover falls below Rs. 60 million in 4 consecutive quarters, businesses can apply for cancellation of SSCL registration.
Key Dates to Remember
- 1 Oct 2022: SSCL became effective
- 8 Sep 2023: New exemptions introduced
- 1 Jan 2024: Lower registration threshold (Rs. 15M/quarter) took effect
- 20th of each month: Monthly payment deadline
- 20th of Jan/Apr/Jul/Oct: Quarterly return deadlines