Sri Lanka's new president suspended Parliament for a month from Tuesday (Dec 3) ahead of snap elections he wants to call in March to consolidate his sweeping victory.

Mr Gotabaya Rajapaksa, elected president last month in a landslide victory, issued a proclamation overnight proroguing the legislature and said a new session will begin from Jan 3.

Mr Rajapaksa, 70, is hoping to ride a wave of popularity by calling an election six months before the current Parliament's five-year term expires in August.

He has already ordered major tax cuts in a bid to boost an economy still struggling after deadly Easter Sunday suicide bombings that crippled the country's booming tourism sector.

A 15 per cent value-added tax was cut to 8 per cent, while another 2 per cent goods and services tax was abolished from this month.

The construction industry - which has slumped hard this year - also saw its corporate tax burden cut from 28 to 14 per cent.

The official announcement of calling a fresh session of the legislature will give the minority government of Mr Rajapaksa more control over parliamentary oversight committees.