Sri Lanka Lottery Winnings Tax Calculator (14% WHT)

Sri Lanka treats lottery winnings as a specific category of payment subject to a fixed-rate Withholding Tax (WHT) deducted at source by the paying body — in practice, the Development Lotteries Board (DLB) or the National Lotteries Board (NLB). The legal basis is Section 84 of the Inland Revenue Act No. 24 of 2017 read together with Item 6 of the Fifth Schedule, which singles out “winnings from a lottery, betting, or gambling” for WHT.

The current rate and threshold come from IRD Circular SEC/2023/01, effective 1 January 2023: 14% on the gross payment whenever the sum paid to a single recipient exceeds Rs 500,000. The calculator works in four short steps.

1. Compute the per-winner share. If the headline prize is split between co-winners, divide gross by the number of winners. WHT is always assessed against the share each winner receives — not the headline jackpot.
2. Apply the threshold test. If the share is greater than Rs 500,000, WHT applies. If the share is Rs 500,000 or less, no WHT is withheld and the lottery board pays the full share.
3. Compute the WHT. When the threshold is exceeded, the rate is applied to the full share, not to the portion above Rs 500,000. So a Rs 600,000 share gives WHT of Rs 84,000 (14% × 600,000), not Rs 14,000 (14% of the Rs 100,000 above the threshold). The Rs 500,000 figure is a gating threshold, not an allowance.
4. Compute the net.Net take-home is share minus WHT. The board credits the net amount to the winner's bank account and issues a WHT certificate evidencing the deduction.

Section 88(2) of the IRA classifies the WHT under Section 84 paid by a resident person on winnings as a final tax. There is no further income tax on the lottery prize, no top-up assessment at the end of the year of assessment, and no obligation to gross up the winnings into the personal income tax computation. The 14% taken at source fully discharges the liability for a resident winner.

Cross-check formula: wht(share) = share > 500_000 ? 0.14 × share : 0. A step function with one breakpoint. The calculator above runs this exact formula client-side and the result tile matches the line-by-line breakdown directly underneath, so you can verify the arithmetic at a glance.

Stamp duty on the ticket itself (Rs 20 per ticket on a Rs 100 face value, levied under the Stamp Duty (Special Provisions) Act) is paid at the point of sale by the agent and is unrelated to WHT on the prize. It is shown for context and cannot be reclaimed against winnings.

• Inland Revenue Act No. 24 of 2017 (Section 84, Fifth Schedule, Section 88)
• IRD Circular SEC/2023/01 — Withholding Tax (rates effective 01.01.2023)
• Inland Revenue Department — Withholding Tax rates page
• Development Lotteries Board (DLB) — official site
• National Lotteries Board (NLB) — official site

This calculator's rate, threshold, and final-tax treatment were last cross-checked against the IRD sources on 2026-05-16. The page is reviewed after any Inland Revenue Amendment Act or new IRD circular affecting WHT on winnings.