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.
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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