Telecoms operators in Sri Lanka issued a joint announcement informing customers tariffs on mobile, broadband and valued-added services will increase 20 per cent from today (5 September) due to rising operational costs and tax hikes.
A statement from Dialog Axiata, Airtel, Hutch and SLT-Mobitel explained the devaluation of the local currency was the main cause of rising costs. The price of pay-TV services was raised 25 per cent.
The increases were approved by the country’s Telecommunications Regulator Commission.
In addition, the government raised the VAT on all telecoms and pay-TV services from 12 per cent to 15 per cent, also effective from today.
The government increased the telecoms levy back to 15 per cent in June: it was cut in December 2019 to 11.25 per cent.
GSMA research found the country’s tax burden as a percentage of total mobile revenue is one of the highest among a sample of South and Southeast Asian countries.
A notice from the Commission showed the effective tax rate in June for telecoms services, covering VAT and government and telecoms levies, was 31.4 per cent. For internet services the telecoms levy is waived, reducing the rate to 14.3 per cent.
GSMA Intelligence data showed Sri Lanka counted 30 million mobile connections at end-June, with 3G services accounting for 54.4 per cent.Subscribe to our daily newsletter Back