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Only one income taxpayer paying over Rs. 300 mn. a year says Aluthgamage
Registered tax files 500,000, only 31,000 pay personal tax
Proposed amendments to Sri Lanka’s Inland Revenue Act will serve to address purported under performance of Inland Revenue Department (IRD) officials in a bid to enhance income tax collection, Government MP Mahindananda Aluthgamage said, noting that there is only one person in the country who pays taxes in excess of 300 million rupees.
Aluthgamage, a former minister and government MP who chairs the Sectoral Oversight Committee on National Economic and Physical Planning, told press conference on Thursday (Aug. 17) that the Inland Revenue Amendment Bill, once passed in parliament, will enable robust measures to address the issue.
The objective is to make formidable decisions regarding officials not contributing effectively to the state’s tax revenue enhancement, a statement from the president’s media division (PMD) quoted Aluthgamage as saying.
“There’s only one person in Sri Lanka who pays more than 300 million rupees in tax. Only three people between 50 million and 100 million rupees; only 16 people between 25 and 50 million;
One hundred and thirty seven between five and 10 million; 508 between two and five million; 804 between one and two million, and 5,473 between 500,000 and one million rupees,” he said.
The MP said Sri Lanka is still behind on a condition imposed by the International Monetary Fund (IMF) in exchange for a bailout package to increase state revenue.
“We’re trying to reach that target. The government will have to take some unpopular measures,” he said.
“Instead of taxing the small man on his salary, state revenue can be increased by taxing those who should be taxed,” he said, noting that the IRD is owed 904 billion rupees in tax collection.
An immediate overhaul of the nation’s tax policy is imperative, the PMD quoted Aluthgamage as saying.A substantial burden rests on the Inland Revenue Department, tasked with collecting the 904 billion rupees in taxes.
He said that Sri Lanka is the only country in the world permitting four tax appeals and it would take a “staggering” 15 years to dispose of these appeals.Speaking at a meeting of the committee he chairs on July 06, Aluthgamage said only 31,000 Sri Lankans out of some 500,000 persons with registered income tax files pay personal income tax while 328 registered limited companies out of 105,000 contribute to 82 percent of tax revenue.
Sri Lanka has been compelled to increase its tax revenue in the wake of the 2022 currency crisis, the worst in decades, and the subsequent agreement with the IMF over a 2.9 billion dollar extended fund facility. However, resistance to a hike in progressive personal income tax has been high, with many high-income earning professionals in the state sector holding a number of protests against the increase.
Value added taxes were also raised to 15 percent from eight percent last year. Another 2.5 percent cascading tax was imposed on top of VAT, the effect of which was estimated to be around 4.5 or more through the cascading effect.
The IMF had reportedly asked the cash strapped Sri Lankan government to impose taxes on all who receive monthly income of above 41,667 rupees as a prior condition for the bailout, butPresident Ranil Wickremesinghe’s administration had instead imposed a Pay As You Earn (PAYE) tax on everyone who earns over 100,000 rupees a month.
The IMF has defended the tax hike, arguing that creditors and investors will not support Sri Lanka because tax to GDP had fallen steeply. Taxes, including value added taxes were slashed in 2019 December to target a ‘persistent output gap’, after serial currency crises from flexible inflation targeting reduced growth. (Economy Next)
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Heat Index at Caution Level in the Northern, North-central and North-western provinces and in Kegalle, Trincomalee and Batticaloa districts during the day time
Warm Weather Advisory
Issued by the Natural Hazards Early Warning Centre
Issued at 3.30 p.m. on 28 April 2026, valid for 29 April 2026.
The Heat index, the temperature felt on human body is likely to increase up to ‘Caution level’ at some places in the Northern, North-central and North-western provinces and in Kegalle,
Trincomalee and Batticaloa districts during the day time.
The Heat Index Forecast is calculated by using relative humidity and maximum temperature and this is the condition that is felt on your body. This is not the forecast of maximum temperature. It is generated by the Department of Meteorology for the next day period and prepared by using global numerical weather prediction model data.
Effect of the heat index on human body is mentioned in the above table and it is prepared on the advice of the Ministry of Health and Indigenous Medical Services.
ACTION REQUIRED
Job sites: Stay hydrated and takes breaks in the shade as often as possible.
Indoors: Check up on the elderly and the sick.
Vehicles: Never leave children unattended.
Outdoors: Limit strenuous outdoor activities, find shade and stay hydrated.
Dress: Wear lightweight and white or light-colored clothing.
Note:
In addition, please refer to advisories issued by the Disaster Preparedness & Response Division, Ministry of Health in this regard as well. For further clarifications please contact 011-7446491.
New controversy erupts over missing USD 2.5 mn:
Public interest activist Nagananda Kodituwakku has sought citizenship details of Finance Ministry Secretary Harshana Suriyapperuma from the Department of Home Affairs, Australia.
According to a letter dated 28 April, addressed to the relevant department, Solicitor England and Wales Kodituwakku sought the required information in terms of Section 15 of the Freedom of Information Act No 3 of 1982 of Australia. Suriyapperuma is also the Secretary to the Treasury.
The former Deputy Minister of Finance and Planning Suriyapperuma (from November 2024 to June 2025) is embroiled in a deepening controversy over the theft of USD 2.5 mn from the Treasury.
The leader of the Vinivida Foundation said that he intended to move court against Suriyapperuma for entering Parliament through the NPP National List in violation of the country’s Constitution (Article 91(1)(d)(xiiii).
Kodituwakku said: “This is clearly an accountability and integrity issue and violation of the Constitution of Sri Lanka and also this act contravenes the law of a member in the Commonwealth.”
USD 2.5 mn paid to a third party was meant to be an instalment of a loan taken from Australia. Suriyapperuma neither responded to an SMS nor answered his hand phone.
Geetha Kumarasinghe (UPFA/Galle District) and Diana Gamage (SJB National List) lost their seats in 2017 and 2024, respectively, over citizenship issues.
Meanwhile, public interest group ‘Free Lawyers’ that exposed the theft of Treasury funds questioned the failure on the part of Dr. Harsha de Silva, Chairman of Committee on Public Finance (CoPF), to pressure President Anura Kumara Dissanayake to temporarily remove Suriyapperuma to facilitate unhindered investigations.
On behalf of ‘Free Lawyers’, Rajith Keerthi Tennakoon yesterday expressed concern over the way the CoPF, under SJBer de Silva’s leadership, handled the issue at hand. Issuing an open letter, Tennakoon, urged the CoPF chief to explain his stand on a spate of vital issues which needed to be addressed without any further delay.
By Shamindra Ferdinando
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President Anura Kumara Dissanayake handing over a sapling of the Sri Maha Bodhiya in Anuradhapura to Ven Bhikku Pannakara
President Anura Kumara Dissanayake handing over a sapling of the Sri Maha Bodhiya in Anuradhapura to Ven Bhikku Pannakara (Sue Tue Nhan) at the conclusion of the 161 km ‘International Peace Walk’ in Colombo yesterday. The Bo-sapling will be taken to the US by the spiritual leader. Pic by Sujata Jayaratne
Dulani and Samarawickrama set up Sri Lanka’s victory in T20I series opener
Heat Index at Caution Level in the Northern, North-central and North-western provinces and in Kegalle, Trincomalee and Batticaloa districts during the day time
Showers or thundershowers will occur in most parts of the island after 1.00 pm
Treasury chief’s citizenship details sought from Australia
President Anura Kumara Dissanayake handing over a sapling of the Sri Maha Bodhiya in Anuradhapura to Ven Bhikku Pannakara
USD 625,000 meant for US Postal Service goes missing
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