News
Govt plans Revenue Authority to monitor underperforming IRD, Excise dept, Customs
ECONOMYNEXT – Sri Lanka is in the process of creating a Revenue Authority and the 2024 budget is likely to announce it to monitor the three key state income collecting bodies due to their poor performance, sources who are aware of the new move said.
A Parliament Sectoral Oversight Committee on National Economic and Physical Plans has said the government’s tax collection is far behind the target due to the lethargic attitude of the three main state revenue collecting institutions: Inland Revenue Department (IRD), Excise Department, and the Customs.
The government has estimated a revenue target of 3.1 trillion rupees for this year, but as of September 26, the collection has been only 1.64 trillion rupees.
Officials say the government is likely to face a 637-billion-rupee or 20.5 percent shortfall in revenue if the current collection trend continues.
The International Monetary Fund (IMF) has estimated a 15 percent shortfall in revenue but has asked the government to expand the tax net.
“The next budget will announce the Revenue Authority which will monitor all three revenue collecting institutions,” a source who is aware of the budget told EconomyNext on condition of anonymity.
“The major issue is inefficiency and corruption in all three revenue collectors. The new Authority will try to accelerate tax collection through finding solutions for the current delays.”
The official data showed that only 161 Company Income Tax (CIT) files, 8,533 Individual Income Tax (IIT) files, 14 Partnership files, 104 Value Added Tax (VAT) files, and 2,094 Social Security Contribution Levy (SSCL) files have been opened in the first eight months of this year.
The Parliament Sectoral Oversight Committee led by Mahindananda Aluthgamage MP recommended establishing a body to monitor and regulate all three state revenue collecting institutions.
Government officials have said an internal resistance to implement the Revenue Administration Management Information System (RAMIS) acquired from Singapore has resulted in the government losing billions of tax collections.
“Unfortunately, we need to create such a monitoring authority because the government is not reaching its targets and we need to find the reasons. We know some tax officials don’t like this because they might lose their side businesses. But this time, we have no choice,” another government official said.
News
Cabinet nod to increase the number of new automated passenger clearance gates at the Bandaranayake International Airport to 12
Approval of the Cabinet of Ministers was granted at their meeting held on 19.05.2025 to purchase four (04) automated passenger clearance gates for Bandaranayake International Airport.
In addition, it is expected to extend the automated passenger clearance gates facility so far given only to the Sri Lankans
parallel to the e – passport issuance system to be introduced in the year 2027 also to the foreigners who travel to and from this country.
Furthermore, considering also the number of air passengers rapidly increasing with the fast – forwarding business and tourism field, the appropriateness to increase the total automated passenger clearance gates up to twelve (12) in number has been recognized.
Accordingly, the Cabinet of Ministers, approved the resolution furnished by the Minister of Public Security and Parliamentary Affairs to initiate the procurement and installation of 12
automated passenger clearance gates altogether with the already approved four (04) and another eight (08) automated passenger clearance gates adhering to the formal procurement procedure
Based on the observations submitted by the Task Force on Prevention of Money Laundering and Financing for Terrorism, approval of the Cabinet of Ministers was granted at their meeting held on 18.12.2024 to amend the Trust Ordinance No. 9 of 1917 including amendments proposed by the Financial
Intelligence Unit of the Central Bank of Sri Lanka.
Accordingly, clearance of the Attorney General has been granted for the Trust (Amendment) Draft Bill formulated by the Legal Draftsman.
Therefore, the Cabinet of Ministers approved the resolution furnished by the Minister of Justice and National Integration
to publish the said draft bill in the government gazette notification and thereby, submit the same to the Parliament for its concurrence.
Action was taken to provide a fuel relief for the fuel consumers during the months of April, May and June of 2026 to redress by minimizing the impact caused to the day today life of the citizens of this country as well as the entire economy due to the price hike of petroleum fuel in the global market resulting from the war situation in the Middle East.
Government mediation is essential for minimizing the impact on the day to today life of citizens in this country due to that war situation not being ended further. Therefore, it has been planned to redress on the sale price for Auto Diesel and Industrial Diesel for a period of 03 months by the Government to provide relief to the public as well as to maintain the prices at a bearable level to the consumers without escalating the fuel prices in this country compared to the escalation of fuel prices
in the international market.
Therefore, the Cabinet of Ministers granted approval for the resolution furnished by the President in his capacity as the Minister of Finance, Planning and Economic Development to
allocate provisions subject to the monthly limitations respectively as rupees 15 billion for the month of October, rupees 13.5 billion for the month of November and rupees 12.15 billion for the month of December to provide the said relief
Cabinet nod to increase the number of new automated passenger clearance gates at the Bandaranayake International Airport to 12
Draft Bill for amending the Trust Ordinance
Implementing further relief programme to Public sffected by the Middle East conflict situation
Establishment of a Spectrum Management and Monitoring System and a Quality of Service and Quality of Experience System for the Telecommunications Regulatory Commission of Sri Lanka
Appointment of a Committee for the Restitution of Sri Lankan Cultural Heritage Held Abroad
Ten-Year National Action Plan on the Social Protection Sector (2026–2035)
‘Dates have the highest sugar content to fight Coronavirus’
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