News
Amidst corruption charges, IMF intervenes to streamline tax collection
New tax administration system for Excise Dept. proposed at a cost of Rs 2 bn
By Shamindra Ferdinando
The International Monetary Fund (IMF) has stepped in to help streamline tax collection here amidst allegations of corruption and inefficiency against revenue collecting authorities.
Justice Minister Dr. Wijeyadasa Rajapakse, PC, has repeatedly alleged both in and outside Parliament that the Inland Revenue Department, the Sri Lanka Customs and the Excise Department have failed in their primary responsibilities.
Revealing that a four-member IMF expert team had held a lengthy discussion with a team of Excise officers, led by newly appointed Commissioner General, Excise, Saman Jayasinghe, at the Finance Ministry last Friday (Jan.13), Additional Commissioner General, Excise (Revenue Operations and Law Enforcement) said that the ongoing project involved the Treasury, Inland Revenue Department, Sri Lanka Customs, Fiscal Policy Department, Sri Lanka Chamber of Commerce, and several other institutes.
Parliamentary watchdog committees and the Attorney General’s Department have repeatedly found fault with the revenue collecting authorities for shortcomings, while Minister Rajapaksa and former Minister Mahindananda Aluthgamage, MP, alleged corruption at every level in those institutions.
Responding to The Island queries, Kumarasinghe said that there had never been previous discussions with the IMF, though they addressed issues at hand with the World Bank.
Kumarasinghe acknowledged the urgent need to overhaul the entire system, in line with the government policy on increasing tax collection. Consequent to Friday’s talks, the Excise Department announced a move to establish a Revenue Administration System for the Excise Department (RASED). Kumarsinghe said that the new project could cost approximately Rs. 2 bn.
Minister Rajapaksa recently told The Island that an utterly corrupt revenue collection system had heavily contributed to the continuing crisis, by repetitively failing to meet targets. The exporters systematically continue to hold billions of USD abroad the while revenue authorities neglect collection of taxes and fines, Dr. Rajapakse said, pointing out the disclosure made at the Committee on Public Accounts (COPA), last year, that as much as Rs.763 bn remained to be collected.
According to Kumarasinghe, the Excise delegation discussed the entire range of issues in hand with the IMF team. The ten-point plan was meant to enhance efficiency and capacity building, the official said, adding that the department faced the daunting challenge in collecting Rs 217 bn this year. The Excise Department had never been given an annual target of over Rs 200 as the cash-strapped government struggled to cope up with the developing crisis, Kumarasinghe said.
Meanwhile, the Excise Department has launched a series of raids in Thalawa, Nelubewa and Kahatagasdigiliya following complaints received regarding fake security stickers used on bottles of arrack.
The Prime Minister, Dr. Harini Amarasuriya, paid a solemn visit to the Embassy of the Vatican in Colombo today (25) to offer condolences on behalf of the Government and the people of Sri Lanka on the passing of His Holiness Pope Francis.
During the visit, Dr. Amarasuriya signed the book of condolence, expressing deep sorrow over the demise of the beloved spiritual leader and extending heartfelt sympathies to the Catholic community both in Sri Lanka and around the world:
The Prime Minister was received by the Archbishop Brian N. Udaigwe, Apostolic Nuncio of the Apostolic Nunciature, the Vatican Embassy in Colombo and other officials.
[Prime Minister’s Media Division]
President Anura Kumara Disanayake conducted an inspection tour of Kandy city on Thursday (24) night to inspect the progress of the “Siri Dalada Wandanawa” and the related issues that have emerged.
The President held an urgent meeting with relevant officials to address the issues related to sanitation facilities for devotees visiting Kandy to venerate the sacred tooth relic
Agriculture, Livestock, Land and Irrigation Minister K.D. Lalkantha, Diyawadana Nilame of the Sri Dalada Maligawa Nilanga Dela Bandara , Acting Inspector General of Police Priyantha Weerasuriya, Army Commander Lieutenant General Lasantha Rodrigo, Governor of the Central Province Prof. Sarath Abeykoon, Kandy District Secretary Indika Udawatte and others participated in this meeting.
[PMD]
A Sri Lankan delegation met with US Trade Representative Ambassador Jamieson Greer on the 22nd of April, 2025 at the US Trade Representative Office in Washington D.C.
The Sri Lankan delegation, on the instructions of President Disanayaka, who is also the Minister of Finance, handed over the originals of communications addressed to US Trade Representative Ambassador Greer
The delegation updated Ambassador Greer on the challenges that Sri Lanka has faced in the past and the steps that are being taken by the Government of Sri Lanka to overcome future challenges and move towards full economic recovery. The delegation also highlighted the prompt and positive commitment of the Government of Sri Lanka to work with the US Government in reducing the trade deficit, and lowering tariff and non-tariff barriers.
Ambassador Greer acknowledged the proposals made by the Sri Lankan government and expressed hope that an agreement can be reached soon between the two countries to ensure fair and equitable trade relations.
Later on that day, the Sri Lankan delegation met with the USTR delegation appointed by Ambassador Greer lead by Assistant United States Trade Representative, In-charge of South and Central Asia, Brendan Lynch along with Director In-charge of South Asia, Emily Ashby to discuss further the appeal made in writing by Sri Lanka to the US. The two sides agreed to continue the discussions with the objective of finalizing a bilateral trade agreement between the two countries. Both sides expressed the desire to finalize the agreement in the shortest possible time period.
The Office of the U.S. Trade Representative (USTR) is responsible for developing and coordinating U.S. international trade, commodity, and direct investment policy, and overseeing negotiations with other countries. The head of USTR is the U.S. Trade Representative, a Cabinet member who serves as the president’s principal trade advisor, negotiator, and spokesperson on trade issues.
[PMD]
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