ECONOMYNEXT — The Colombo Municipal Council (CMC) has slashed its entertainment tax across all categories, including a sharp reduction for local concerts, in an effort to revitalize the capital’s cultural and creative industries.
The relevant Gazette notification has now been issued after the proposal was approved through the 2026 Budget, Colombo Mayor Vraîe Cally Balthazaar said.
“One of the requests we received when we took office was a simple one. The Governor asked us to create more opportunities for the people of Colombo to enjoy entertainment, culture, and sport,” Balthazaar said.
Under the revisions, the entertainment tax slapped on local concerts has been lowered from 12 percent down to 7 percent.
Mayor Balthazaar stated that the policy change followed a direct request from the Governor to open up the city for more public engagement.
Following the tax cut, the municipal administration has called on event creators to ensure the financial relief trickles down to the public. Organizers are being encouraged to adjust their pricing structures to make commercial entertainment more accessible to a wider audience.
“We hope this benefit doesn’t stop with the industry, but reaches the people too. Wherever possible, we encourage organisers to reflect this tax reduction in their ticket prices, making concerts and events more affordable for more people,” the Mayor added.
The local government expects the lower tax rates to act as a buffer for local artists and the broader creative sector, while pushing Colombo to become a more active cultural hub.
Balthazaar noted that the city’s development should look beyond basic infrastructure, emphasizing that shared social experiences remain vital to urban life. (Colombo/Jul16/2026)