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Home :: Types of Taxes :: Construction Industry Guarantee Fund Levy (CIGFL)

Construction Industry Guarantee Fund Levy

CIGFL was originally introduced in PART III of the Finance Act No. 5 of 2005


CIGFL is payable by any “Construction Contractor” or “Sub Contractor” on the “value of any construction contract” enforced in Sri Lanka (on or after January 1, 2005) at the specified appropriate rate.

However, no CIGFL shall be charged on any construction contract to be entered into and enforced in Sri Lanka by any construction contractor, on their contract value in respect of contracts for the implementation of specified projects approved by the Minister of Finance, entered into from and after January 1, 2011. (PART IV of the Finance (Amendment) Act No 15 of 2011)


Construction Contractors or Sub Contractors – if liable to pay the levy should obtain a registration number from the WHT Branch of the Department.

Payers to Contractors or Subcontractors (Contractee) - Such persons or partnerships are required to obtain a registration from the WHT Branch of the Department prior to make such deduction of WHT.

Value of Contract Rate
Less than Rs. 15 m Nill
Not less than Rs. 15 m but less than Rs. 50 m 0.25%
Not less than Rs. 50 m but less than Rs. 150 m 0.5 %
Rs. 150 m or more 1%

Levy withheld by the Contractee (Payer)

The CIGFL deducted by the payer should be remitted to the Commissioner General of Inland Revenue on or before the 15th day of the month following the month in which such deduction was made.

Tax payable by Construction Contractors or Subcontractors

The liability to CIGFL arises at the time of such payment. The payments relating to each month, if any, should be made on or before 15th day of the following month after setting off the CIGFL deducted by the payer as certified in the certificate of deduction of CIGFL.

Mode of Collection​

Effective from 01.04.2009

- Withholding tax mechanism was incorporated to the CIGFL. [in terms of the amendment introduced by the Finance (Amendment) Act No. 18 of 2009] Accordingly, with effect from 01.04.2009, any person or partnership, who or which makes any payment to any construction contractor or sub contractor amounting to the value of any construction not less than Rs. 15 m, is required to deduct from such payment, the CIGFL at the rate specified based on the value.


“Construction Contractor” means the person or persons or organization or organizations named as the contractor in a bid or who is otherwise accepted by the employer as the person or organization responsible for the implementation, completion and maintenance of the construction works being carried out under the terms of such contract.

“Contract Value” means the amount or the amounts stated in the letters of acceptance and which are thereafter adjusted in accordance with the provisions of the contract. The said contract value shall be the sum total of individual contracts or of several contracts which have been entered into in respect of the carrying out of the construction of the project and shall include sub-contract values, supply contract values and such other construction costs that may be incurred in carrying out the work. ​​​​​

Last updated: 23-05-2015
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