The standard rate of taxation is 28%. Tax rates of 10% and 40% often refer to profits made by certain firms. In Sri Lanka, company administration is practiced. Resident companies are taxed worldwide, while a non-resident corporation is taxed only on Sri Lankan income. According to international macro models and analysts' projections, the Corporate Tax Rate in Sri Lanka is forecast to be 28.00 percent by the end of the quarter. According to our econometric models, the Corporate Tax Rate in Sri Lanka will be projected at approximately 23.00% in 2020. Benchmark government bonds in Sri Lanka sank into the worst ever week on Friday following an immediate cut in the value-added tax (VAT) movement by the new government, with other major taxation raising concerns about the cost of plans. In 2027 and 2028, the bond denomination for payment fell from approximately 96 cents on the dollar to approximately 90 cents at the eighth session of the straight session and increased yields up to 8% by 6.8 percent. During its first week, the new government in Sri Lanka, headed by former Civil War Defense Chairman Gotabaya Rajapaksa, reduced VAT by 15% to 8% and cut corporate tax, cut tax and PAYE wages and set a zero tourism tax rate which generates 60% of the revenues locally. Citi analysts alone calculated that a VAT cut might cost Sri Lanka 200 billion rupees ($1.11 billion) or 1.3 percent of GDP, while the overall cuts page would increase the income gap significantly. Customers were advised that the budget deficit was expected to be about 5.8% of GDP in 2019, but the annual deficit level could be close to 7% of GDP in 1H20 without any corrective fiscal steps. The reforms will also increase pressure on S&P Global and the weak' B' score for the country's sovereign ratings. In recent weeks Fitch warned both of them of tax loses.