Apparel exporters welcome post-SVAT VAT refund gains

SLAEA Chairperson Rajitha Jayasuriya says most qualified apparel exporters already received October and November VAT refunds earlier than expected Commends collaboration between IRD, Presidential Task Force and industry, but stresses need for consistent performance Calls for faster rollout of e-invoicing across value chain, adherence to true risk-based audits for large refunds

- By CHARUMINI DE SILVA

SLAEA Chairperson Raijtha Jayasuriya

APPAREL exporters have welcomed early gains from the abolition of the Simplified VAT (SVAT) scheme and the transition to the Risk-Based Refund Scheme (RBRS), describing the timely release of VAT refunds as a positive and confidence-boosting development for the country’s largest export industry, while cautioning that consistency and deeper digital reform will be critical to sustaining momentum.

Sri Lanka Apparel Exporters Association (SLAEA) Chairperson Rajitha Jayasuriya said the removal of the SVAT from 1 October 2025 and its replacement with the RBRS marked a significant policy shift, particularly at a time when exporters remain under pressure from tight margins, global demand volatility, and high working capital costs. Under the new system, VAT refunds were to be processed within 45 days from the date of correct filing.