In a parliamentary address on Tuesday, Sri Lankan President Ranil Wickremesinghe announced a new wealth tax targeting rental income, assuring that the majority of homeowners will remain unaffected due to a high tax threshold. The President said that approximately 90 percent of homes would be exempt from the tax.

"I just want to tell the House in regard to the rental income. We are going to have a wealth tax, and there will be a very high threshold. So don't worry, your house is safe," Wickremesinghe stated.

The tax, designed to circumvent constitutional challenges linked to provincial council revenues, focuses on rental income instead of property ratings. This strategic approach aims to ensure compliance with central government taxation authority while sidestepping potential legal issues.

Reiterating the limited scope of the tax, the President noted that it would primarily affect a small, affluent minority. He also pointed out that the opposition party, Samagi Jana Balawegaya (SJB), is concerned about the impact on its wealthy supporters.

"I know SJB is very, very worried that their billionaires who are with them will get taxed. But nevertheless, this is the reason for it," he said.