Stamp Duty

Definition

• Stamp Duty is charged under section 37 of the Finance Statute of the Central Province No.17 of 1990.

There shall be charged on

• Every instrument relating to a transfer of immovable property situated in the Central Province.  
• Every document presented of filed, in proceedings instituted in any Court of law established by law, in the Central province of Sri Lanka.

Effect From

• 1st January, 1991

Stamp duty Rates

01.		Exchange of any Property - not between co-heirs*
		a. if equal value		The same duty as on a conveyance of such property at its market value
		b. if not equal value		The same duty as on a conveyance of the property of higher value, computed at its market value thereof
		Exchange of any Property -  between co-heirs*
		a. if equal value					10.00
		b. if not equal value		The same duty as the duty payable on the transfer of a property. Whose value is equivalent to the difference in market value of the properties exchanged.
02.		Gift of immovable property*
		a. Value Rs. 50,000 or less		For every Rs.100 or part thereof	3.00
		b. If Value exceeds Rs. 50,000		On first Rs. 50,000	1,500.00
				On the balance, for Every Rs. 100 or thereof	2.00
03.		Selling, immovable property*
		a. Value Rs. 100,000 or less		For every Rs.100 or part thereof			3.00
		b. If Value exceeds Rs. 100,000		On first Rs. 100,000			3000.00
				On the balance, for Every Rs. 100 or thereof			4.00
04.	Every document presented or filed in the proceedings instituted in*
	a. High Court		For every Rs.1,000 or part thereof (maximum of Rs.2,000)			2.00
05.	b. District Court		For every Rs.1,000 or part thereof (maximum of Rs.1,000)			1.00

Gazette

* Gazette notification -642/18, 1990.12.28

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Valuation for stamp duty (immovable property)

*. To any property (other than immovable property which is gifted) and to any date, means the price which in the opinion of the Assessor, property would have fetched in the open market on that day;

*. To any immovable property which is gifted, being immovable property which was acquired by donor on or before march 31, 1977 means - 

1. The price which in the opinion of the Assessor that property would have fetched if sold in the open market on march 31, 1977 increased by an amount equal to the cost of   the improvements,   alterations and additions, if any, made to such property after march 31, 1977 and prior to the date of the instrument by which such property is gifted; or
2. The price, which, in the opinion of the Assessor, that property would have fetched if sold in the open market on the date of the instrument by which such property is gifted;

Whichever price is the lower

*. Any immovable property which is gifted, being immovable property which was acquired by the donor after March 31, 1977 means - 

1. The price which, in the opinion of the Assessor, such property would have fetched if sold in the open market on the date on which such property was acquired by the donor, increased by and amount equal to the cost of the improvement, alterations and additions, if any, made to such property after the date on which the property was acquired by the donor, and prior to date of   the instrument by which such property is gifted; or
2. The price which, in the opinion of the Assessor, that property would have fetched ,if sold in the  open market on the date of the instrument by which such property was gifted;

Whichever price is the lower

*. Duty is payable at the time of execution of the instrument

*. Stamp duty payable  on an instrument  relating  to a transfer of immovable property may be paid  to a prescribed bank which shall issue a Certificate in the prescribed from payment  of the amount  of   stamp duty  paid and the  date of  payment of such  duty  and such instrument  shall  have affixed on it the Certificate  of  payment issued  by the bank.

These Bank Certificate Could be Purchased from any branch of People's Bank or Bank Of Ceylon