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Tourism Development Levy

TOURISM DEVELOPMENT LEVY - TDL

The Sri Lanka Ministry of Tourism in consultation with the Ministry of Finance introduced the Tourism Development Levy in September 2003. The Tourism Development will be used towards developing and promoting Sri Lanka tourism.

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TDL Gazette


Documents need for finance clearance  



DETAILS OF THE FINANCIAL ACT NO.25 OF 2003

  • The act imposes a levy on the issue of airline tickets and tickets in respect of a voyage-by-ship.

  • The Act replaces the Embarkation Tax Act, No. 19 of 1961 and amends the Air Navigation Act (Chapter 365).

  • On the turnover of institutions licensed under the Tourist Development Act, No. 14 of 1968 and to provide for matters connected therewith or incidental thereto


DETAILS OF THE TOURISM DEVELOPMENT ACT NO.14 OF 1968

Every institution licensed under the Tourist Development Act, No. 14 of 1968 is eligible to pay a levy of one percent on the turnover.
The levy would not be charged on the turnover of any General Sales Agent licensed under the Tourist Development Act, No. 14 of 1968 as a Travel Agent, with effect from January 1, 2004.


Method of payment of Tourism Development Levy

The levy imposed under Section 11 shall be paid by the relevant Minister in consultation with the Minister in charge of the subject of Finance and collected by the Director-General of the Ceylon Tourist Board established by the Ceylon Tourist Board Act, No. 10 of 1966.

The Director-General of the Ceylon Tourist Board will retain the entirety of the Levy collected under subsection. He shall also furnish such returns in such manner as may be prescribed in that behalf to the Deputy Secretary to the Treasury, within thirty days of the date on which such amount is collected.


Definition of Turnover  

Turnover amount received or receivable from the total sales, excluding the service charge, up to 10% of such sales and the value-added tax charged, on such sales in terms of the Value Added Tax Act, No.14 of 2002.

Turnover is determined by the total receipts from services provided in relation to the tourist industry, excluding payments made by the Travel Agent, in respect, of services provided to him by other local service providers and the value-added tax charged on such sales in terms of the Value Added Tax Act No. 14 of 2002.

The turnover would amount received or receivable from the total sales of products from any such shop, excluding the value-added tax charged on such sales in terms of the Value Added Tax Act, No.14 of 2002.

  • Tourist Hotel

  • Travel Agent

  • Tourist Shop