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Sri Lanka

SC declines to rule on constitutionality of VAT Amendment Bill

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The Supreme Court has informed Parliament that it has refrained from making a determination on the constitutionality of the Value Added Tax (Amendment) Bill, which had previously been challenged before the Court.

Deputy Speaker Dr. Mohamed Rizvie Salih made the announcement in Parliament this morning, sharing the Supreme Court’s position regarding the Bill. The case had been brought to the Court under Article 121(1) of the Constitution, which deals with the review of the constitutionality of legislation.

According to Dr. Salih, the Supreme Court clarified that since both petitioners in cases S.C. (SD) 05/2025 and S.C. (SD) 06/2025 chose not to proceed with the matter, following undertakings provided by the State, the Court had not issued a ruling on the Bill’s constitutionality.

This development comes as a significant update on the ongoing legal proceedings surrounding the amendment to the VAT legislation, with no further judicial determination made on its validity at this time.

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