The Ministry of Finance’s decision to sunset the Social Security Contribution Levy (SSCL) has been met with enthusiasm by the Colombo Stock Exchange. Market analysts project that the removal of this tax will directly improve the bottom line of licensed commercial banks, potentially boosting Earnings Per Share (EPS) by over 5% in the 2026 fiscal year.
“The banking sector carried a heavy tax burden during the crisis years. This relief will translate into better dividends for shareholders and increased lending capacity,” noted a lead researcher at a Colombo-based investment firm. The policy shift signals a move towards a more growth-oriented tax regime.
References:
- Ministry of Finance: https://www.treasury.gov.lk/
- Colombo Stock Exchange: https://www.cse.lk/
