The Capital Gains Tax (CGT) is a tax on the realisation of investment assets. CGT is a type of tax which is charged on the profit from a sale of property or an investment and was recently re-introduced in Sri Lanka under the Inland Revenue Act, No. 24 of 2017 and will come to effect from 1st April 2018. This will, however take into account any costs that were incurred on buying, improving and selling such assets and reduce those values from the overall amount. Capital assets include any land, building, machinery and share. However capital gains from the share market will be exempted under the current Act of Sri Lanka. The profits will be taxed at 10% and is effective from 1st April 2018.