2. Amendment of section 10 of the principal enactment

Official English translation. Where it differs from the Sinhala or Tamil text, the Act itself says which text prevails.

Section 10 of the principal enactment is hereby amended by the insertion immediately after subsection (2)

of that section, of the following new subsection: -

“(2A) (a) Where a person pays to another person, on or after the date of commencement of this (Amendment)

Act, a sum of money amounting in the aggregate to

Rs. 500,000 or more, in a day, or in respect of a single transaction, or in respect of a series of single transactions relating to one event, otherwise than by way of an account payee cheque or account payee bank draft or by the use of a credit card, debit card or electronic payment system through a bank account-

(i)

any deduction shall not be allowed in respect of such payments in calculating the first mentioned person’s income; and

Act, No. 4 of 2023

(ii)

the amounts paid shall not be considered as cost of an asset of the first mentioned person.

(b)

The provisions of paragraph (a) shall not apply to-

(i)

any payment by the Government of Sri

Lanka or any Government institution;

(ii)

any payment by a bank or financial institution; and

(iii)

such classes of persons or payments as may be prescribed by the Minister.

(c)

For the purpose of this subsection-

“bank account” means any account maintained in a bank or financial institution in Sri

Lanka;

“Government institution” means any

Department or undertaking of the

Government of Sri Lanka and includes any public corporation; and

“single transaction” means the purchase or procurement of any goods or services, on a single invoice, receipt or statement.”.

Read on from s 3